Eulogio Martin O. Masilungan
Monitoring & Research Coordinator
MABS
2009 RBAP-MABS National Roundtable Conference
May 12-13, 2009
Hyatt Hotel and Casino
Manila

“What gets measured
gets done.”
“What can’t be measured
can’t be managed.”

• The EAGLE assessment evaluates the
performance of microfinance portfolio
• A management tool for monitoring and
evaluating factors affecting a rural bank’s
microfinance operations
• Has 5 performance areas with 13
indicators

Efficiency
Asset Quality
Growth
Liability Structure
Earnings

EFFICIENCY (30%)
• Cost Efficiency
• Loan Officer Productivity
(group and individual loan)
• Cost per Active Borrower
(group and individual loan)

ASSET QUALITY (30%)
• PAR Over 7 Days
• PAR Over 30 Days
• Loan Loss Provision
• Loan Loss Rate

GROWTH IN PORTFOLIO (10%)
• Growth in Active Borrowers
• Growth in Loan Portfolio
LIABILITY STRUCTURE (10%)
• Deposit to Loan Ratio
EARNINGS (20%)

AA: Overall weighted score of 4.25 and
above - Excellent
microenterprise finance performance
A: Overall weighted score between 4.24
and 3.5 – Very good
microenterprise finance performance
B: Overall weighted score between 2.5
and 3.49 – Average
microenterprise finance performance
NG: Overall weighted score less than
2.49 – Below average performance

So, how did banks
score for the
period January to
December 2008?

• 51 banks were
evaluated
• 5 scored AA; 3 are
qualified for the
EAGLE Award
• 20 scored A
• 18 scored B
• 8 No grade

Measuring
EFFICIENCY

Measuring
ASSET QUALITY

Measuring
GROWTH

Measuring
LIABILITY
STRUCTURE

Measuring
EARNINGS

BEST
PRACTICES

Best Practices
• Allot a day a week for promotional
activities such as barang ay visits,
distribution of flyers and community
events
• Ask AOs to work on Saturdays if there
are PAR problems and low intake of new
clients
• Ask AOs to prepare weekly prospects list
• Niche marketing – TODA members

AREAS FOR
IMPROVEMENT

Areas for Improvement
• Non-functioning MIS resulted in non
monitoring of PAR status
• Loan Supervisors are not given authority
to address delinquency issues (no
delegation of authority)
• nflexible products (fixes loan amount,
I
terms, etc.)
• Poor customer service (long waiting lines,
not enough chairs, unfriendly staff)

Areas for Improvement
• No incentives for MF borrowers who
maintain high savings balance (e.g., lower
interest rate, better payment terms, etc.)

Continue !
Doing Well by Doing Good !
and !
See You All at the !
MABS EAGLE Awards !
tonight!!