This presentation, given by MFTransparency Vice President Alexandra Fiorillo at the European Microfinance Week 2010, discusses the role of self-regulation and government regulation in facilitating responsible pricing. It explains the philosophy underlying MFTransparency's methodology that seeks to include a range of stakeholders in the process of facilitating transparent pricing, and how both policymakers and practitioners have a role to play in creating an environment for transparency

1. Transparent Pricing for Responsible Pricing Alexandra Fiorillo, Vice President www.mftransparency.org December 1, 2010

3. What is Transparent Pricing? Transparent pricing means the pricing, terms, and conditions of financial products will be transparent and adequately disclosed in a form understandable to clients.

4. Transparency Must Come First

5. Combined Approach

6. How Do We Define a Transparent Price?

7. How Do We Define a Transparent Price?

8. Price Depends on Loan Size… and Other Factors

9. Average Portfolio Yield Masks the True Price

10. Portfolio Yield Hides Price Variations

11. What Can We Learn From Truth-in-Lending Legislation?

12. Example 1: Cambodia

13. Example 2: Bosnia

14. Example 3: Peru

15. MF Transparency facilitates self-regulation on pricing transparency.

16. What have we learned?

17. What have we learned?

18. 2010 Kenya Pricing Data

19. Business loans, 12 month terms

20. Why so much price variation?

21. How does transparency affect pricing?

22. What does this mean for responsible pricing?

23. Conclusions