Technical Guide for the Analysis of Microenterprise Financial Institutions
Flaming, Mark; Holtmann, Martin; Mommartz, Rochus
The purpose of this technical guide is to provide a standard format for the analysis of institutions that provide financial services to the microenterprise sector. The technical guide outlines the appropriate techniques and scope of analysis for evaluating and designing programs of support to specialized financial institutions. The analytical techniques presented in this guide are structured to facilitate the process of institutional analysis and project design represented in the diagram below. The analytical framework applied in this technical guide is comprised of two basic components. The first part of the analysis, described in chapters 1 through 5, is dedicated to deriving a series of quantitative performance indicators that measure the performance of the institution. The investigation begins with an analysis of financial performance in order to derive general indicators regarding the sustainability of the institution. Credit operations are then analyzed in order to identify sources of inefficiency. The investigation concludes with an assessment of the impact of the credit services on the institution's clients.