Home Page Icon
Home Page
Table of Contents for
Contents
Close
Contents
by Patrick Scheurle, Peter A. Fanconi
Small Money Big Impact
Cover
Title Page
Copyright
Foreword
Preface
Acknowledgments
About the Authors
Chapter 1: Introduction
1.1 Fighting Poverty
1.2 Investing in Financial Infrastructure
1.3 Content Overview
Notes
Chapter 2: Microfinance – the Concept
2.1 History
2.2 Definition and Goals
2.3 Double Bottom Line
2.4 Financial Inclusion
2.5 Market Participants
2.6 Impact Investing
2.7 Preliminary Conclusions
Notes
Chapter 3: The Microfinance Value Chain
3.1 The Protagonists and Their Tasks
3.2 Regulatory Environment
3.3 Development Finance Institutions
3.4 Market Overview
3.5 Geneva: Birthplace of Modern Microfinance
3.6 Preliminary Conclusions
Notes
Chapter 4: Micro Entrepreneurs
4.1 Definition
4.2 Needs and Requirements
4.3 Micro Entrepreneurs
4.4 Preliminary Conclusions
Notes
Chapter 5: Microfinance Institutions
5.1 Definition and Goals
5.2 Types of MFIs
5.3 MFI Funding
5.4 Services
5.5 Regulation
5.6 Preliminary Conclusions
Notes
Chapter 6: Lending Methodologies
6.1 Traditional Credit Theory and Microfinance
6.2 Lending Methodologies
6.3 Socio‐Economic Factors
6.4 Late Payments and Over‐Indebtedness of Clients
6.5 Default Prevention and Restructuring
6.6 Occupation: Loan Officer
6.7 Preliminary Conclusions
Notes
Chapter 7: Loan Pricing
7.1 Interest Rate Components
7.2 Setting Sustainable Interest Rates
7.3 Regional Differences
7.4 Loan Recipients’ Willingness to Repay
7.5 Preliminary Conclusions
Notes
Chapter 8: Social Performance Management
8.1 Social Performance
8.2 Measuring Social Performance
8.3 Measuring the Outcome of Microfinance
8.4 Social Rating Agencies
8.5 Technical Assistance
8.6 Linking Social Performance with Profitability
8.7 Preliminary Conclusions
Notes
Chapter 9: Beyond the Reach of Microfinance?
9.1 Prejudices and Reservations
9.2 Preliminary Conclusions
Notes
Chapter 10: Investing in Microfinance
10.1 Market Development
10.2 Microfinance Investment Vehicles
10.3 The Investment Process
10.4 Loan Agreements and Pricing Policy
10.5 Microfinance in the Overall Investment Portfolio
10.6 Incentives for Investing in Microfinance
10.7 Preliminary Conclusions
Notes
Chapter 11: Real and Financial Economy
11.1 Microfinance Is Crisis‐Proof
11.2 Real Economy and Local Influencing Factors
11.3 Financial Economy
11.4 Stability Mechanisms
11.5 Preliminary Conclusions
Notes
Chapter 12: Discussion of Results and Conclusions
12.1 Win‐Win‐Win
12.2 Onwards and Upwards
Notes
Appendix A: Example of a Loan Application
Appendix B: Due Diligence of Socio‐Economic Impact Factors
List of Abbreviations
Glossary
References
Photo Credits
Index
End User License Agreement
Search in book...
Toggle Font Controls
Playlists
Add To
Create new playlist
Name your new playlist
Playlist description (optional)
Cancel
Create playlist
Sign In
Email address
Password
Forgot Password?
Create account
Login
or
Continue with Facebook
Continue with Google
Sign Up
Full Name
Email address
Confirm Email Address
Password
Login
Create account
or
Continue with Facebook
Continue with Google
Prev
Previous Chapter
Cover
Next
Next Chapter
Title Page
Table of Contents
Cover
Title Page
Copyright
Foreword
Preface
Acknowledgments
About the Authors
Chapter 1: Introduction
1.1 Fighting Poverty
1.2 Investing in Financial Infrastructure
1.3 Content Overview
Notes
Chapter 2: Microfinance – the Concept
2.1 History
2.2 Definition and Goals
2.3 Double Bottom Line
2.4 Financial Inclusion
2.5 Market Participants
2.6 Impact Investing
2.7 Preliminary Conclusions
Notes
Chapter 3: The Microfinance Value Chain
3.1 The Protagonists and Their Tasks
3.2 Regulatory Environment
3.3 Development Finance Institutions
3.4 Market Overview
3.5 Geneva: Birthplace of Modern Microfinance
3.6 Preliminary Conclusions
Notes
Chapter 4: Micro Entrepreneurs
4.1 Definition
4.2 Needs and Requirements
4.3 Micro Entrepreneurs
4.4 Preliminary Conclusions
Notes
Chapter 5: Microfinance Institutions
5.1 Definition and Goals
5.2 Types of MFIs
5.3 MFI Funding
5.4 Services
5.5 Regulation
5.6 Preliminary Conclusions
Notes
Chapter 6: Lending Methodologies
6.1 Traditional Credit Theory and Microfinance
6.2 Lending Methodologies
6.3 Socio‐Economic Factors
6.4 Late Payments and Over‐Indebtedness of Clients
6.5 Default Prevention and Restructuring
6.6 Occupation: Loan Officer
6.7 Preliminary Conclusions
Notes
Chapter 7: Loan Pricing
7.1 Interest Rate Components
7.2 Setting Sustainable Interest Rates
7.3 Regional Differences
7.4 Loan Recipients’ Willingness to Repay
7.5 Preliminary Conclusions
Notes
Chapter 8: Social Performance Management
8.1 Social Performance
8.2 Measuring Social Performance
8.3 Measuring the Outcome of Microfinance
8.4 Social Rating Agencies
8.5 Technical Assistance
8.6 Linking Social Performance with Profitability
8.7 Preliminary Conclusions
Notes
Chapter 9: Beyond the Reach of Microfinance?
9.1 Prejudices and Reservations
9.2 Preliminary Conclusions
Notes
Chapter 10: Investing in Microfinance
10.1 Market Development
10.2 Microfinance Investment Vehicles
10.3 The Investment Process
10.4 Loan Agreements and Pricing Policy
10.5 Microfinance in the Overall Investment Portfolio
10.6 Incentives for Investing in Microfinance
10.7 Preliminary Conclusions
Notes
Chapter 11: Real and Financial Economy
11.1 Microfinance Is Crisis‐Proof
11.2 Real Economy and Local Influencing Factors
11.3 Financial Economy
11.4 Stability Mechanisms
11.5 Preliminary Conclusions
Notes
Chapter 12: Discussion of Results and Conclusions
12.1 Win‐Win‐Win
12.2 Onwards and Upwards
Notes
Appendix A: Example of a Loan Application
Appendix B: Due Diligence of Socio‐Economic Impact Factors
List of Abbreviations
Glossary
References
Photo Credits
Index
End User License Agreement
List of Illustrations
Chapter 1: Introduction
Figure 1.1 Economic Pyramid
Figure 1.2 Prevalence of Poverty with Respect to Country
Figure 1.3 Millennium Development Goals
Figure 1.4 Annual Investment Needs (in $ trillion)
Figure 1.5 Sustainable Development Goals (SDGs)
Chapter 2: Microfinance – the Concept
Figure 2.1 The History of Microfinance
Figure 2.2 Growth of Clients and Institutions
Figure 2.3 Double Bottom Line
Figure 2.4 Effects of a $1 Million Investment
Figure 2.5 Financial Inclusion According to Country
Figure 2.6 Access to a Bank Account Depending on Income Class
Figure 2.7 Differentiation of Impact Investing
Figure 2.8 Filter for Conventional, Sustainable Investment Decisions
Figure 2.9 Topics Impact Investing
Figure 2.10 Growth of Sustainable Investment Strategies (Assets under Management in EUR Billions)
Chapter 3: The Microfinance Value Chain
Figure 3.1 The Microfinance Value Chain
Figure 3.2 Selected Development Finance Institutions (DFIs)
Figure 3.3 Selected Managers of Microfinance Investment Vehicles
Figure 3.4 Concentration of MIV Managers
Figure 3.5 Managed AUM in Microfinance, According to Location of MIV Administrators
Figure 3.6 Geneva Financial Center
Figure 3.7 International Geneva
Figure 3.8 Sustainability Initiatives in the Financial Sector
Chapter 4: Micro Entrepreneurs
Figure 4.1 Poverty Levels
Figure 4.2 Poverty Levels and Maslow's Hierarchy of Needs
Figure 4.3 Countries with the Highest Proportion of Poor People Worldwide
Figure 4.4 Percentage of Active Borrowers, According to Region
Figure 4.5 Average Loan Balance Per Borrower According to Region
Figure 4.6 Percentage of Female Borrowers, According to Regions
Figure 4.7 BlueOrchard: Volume of Loan According to Sector
Figure 4.8 Balance Sheet of a Micro Enterprise in Bangladesh (in $)
Chapter 5: Microfinance Institutions
Figure 5.1 Different Forms of MFI Organizations
Figure 5.2 Types of MFIs
Figure 5.3 Forms of Financing of MFIs
Figure 5.4 Funding Structure of MFIs
Figure 5.5 Profit‐Oriented and Charitable MFIs
Figure 5.6 Profitability of Profit‐Oriented and Charitable MFIs
Figure 5.7 Example of Types of Loans of an MFI in Pakistan
Figure 5.8 Non‐Financial Services of MFIs
Figure 5.9 Regulation and Supervision Framework
Figure 5.10 Credit Bureaus
Chapter 6: Lending Methodologies
Figure 6.1 The Principal–Agent Problem
Figure 6.2 Group Loans and Game Theory
Figure 6.3 Example of a Micro Loan – Tameer Karobar Loan
Figure 6.4 Example of an Agricultural Loan – Agri Group Loan
Figure 6.5 Portfolio at Risk (PAR) of MFIs
Figure 6.6 Over‐Indebtedness Index and Over‐Indebtedness Factor
Figure 6.7 Measures upon Detection of Default
Figure 6.8 Procedure to Assess Potential MFI Clients
Chapter 7: Loan Pricing
Figure 7.1 Determinants of Interest Rates
Figure 7.2 Volume of Credit Compared to Staff Expenditure
Figure 7.3 Operating Costs: Average Share of Operating Costs in Relation to the Total Loan Portfolio
Figure 7.4 M‐Pesa – Mobile Money
Figure 7.5 Operating Costs as a Percentage of the Loan Portfolio According to Region
Chapter 8: Social Performance Management
Figure 8.1 Social Performance and Social Impact
Figure 8.2 Measuring Social Performance
Figure 8.3 USSPM Overview
Figure 8.4 Smart Campaign
Figure 8.5 Measuring Social Performance by Means of USSPM
Figure 8.6 Measuring Social Performance with Imon International
Figure 8.7 Banco Fie's Commitment to Social Performance
Figure 8.8 Products and Services of MFIs
Figure 8.9 Poverty Scorecard of the Philippines (Extract)
Figure 8.10 Rating Agencies for Social Performance
Figure 8.11 Impact of Microfinance
Figure 8.12 Social Performance and Profitability
Chapter 9: Beyond the Reach of Microfinance?
Figure 9.1 Exemplary Budget of a Female Borrower (in $)
Figure 9.2 Receivables from Loans Provided Per Employee (in $)
Figure 9.3 Inflation in Ghana
Figure 9.4 Comparison of Poverty Levels
Chapter 10: Investing in Microfinance
Figure 10.1 Assets in Microfinance Funds (in Billion $)
Figure 10.2 Microfinance Investors
Figure 10.3 Fund Characteristics
Figure 10.4 Default and Loss Rate
Figure 10.5 Microfinance Investment Process
Figure 10.6 Asset Allocation
Figure 10.7 Process of Analyzing and Selecting MFIs
Figure 10.8 Negotiating Loan Details
Figure 10.9 Positive and Negative Covenants
Figure 10.10 Diversification
Figure 10.11 Efficient Frontier
Figure 10.12 Key Performance Indicators of Asset Classes (1 January 2005 – 31 December 2015, Based on Monthly Returns in $)
Figure 10.13 Correlations
Figure 10.14 Microfinance in the Overall Portfolio
Figure 10.15 Incentives for Investors to Invest in Microfinance
Figure 10.16 Criteria for Investment Decisions
Chapter 11: Real and Financial Economy
Figure 11.1 SMX
Figure 11.2 Balance Sheet of an MFI
Figure 11.3 Trade Balances of Selected Countries
Figure 11.4 Foreign Exchange Volume and Outstanding Government Bonds
Figure 11.5 Deposits Compared to Loans
Guide
Cover
Table of Contents
Begin Reading
Pages
iv
ix
x
xi
xii
xiii
xv
1
2
3
4
5
6
7
8
9
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
161
162
163
164
165
166
167
168
169
170
171
172
173
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
201
202
203
204
205
206
207
208
209
211
212
213
214
215
217
218
219
221
222
223
224
225
226
227
228
229
230
231
233
234
235
236
237
238
239
240
241
243
245
246
247
248
249
250
251
252
253
254
255
Add Highlight
No Comment
..................Content has been hidden....................
You can't read the all page of ebook, please click
here
login for view all page.
Day Mode
Cloud Mode
Night Mode
Reset