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Impact of Code of Conduct Assessments

Between 2010 and 2014, over 100 Code of Conduct Assessments have been carried out by all the service providers, with M2i performing 42 of these assessments. The COCAs commissioned by SIDBI have been published on its website. Since these reports are in the public domain, there is increased focus on the part of MFIs to […]

External evaluations: How critical are they?

External evaluations are inherently important for organizations implementing projects or programmes. Evaluation by external agencies bring value that cannot be gained through operational monitoring or internal audits done internally by the organization. Among other benefits, external evaluations help in building investor and funder confidence and challenging entrenched practices which are often not pointed out by […]

M2i discussion note: Independent Directors can help MFIs in Sustainable Value Creation

MFIs where decision making ensures that expectations of stakeholders are met to a reasonable extent, and stakeholder concerns are adequately addressed, can be considered to be moving along a path that leads to sustainable value creation. Independent Directors, ie, those Board members who do not represent the executive-management, or investors and lenders, can play a […]

Financial inclusion with caution

Regulations, in a financial system provide the assurance that only the financial institutions that are worth operating operate and the general public’s interests are protected. If the regulations rigorously protect the interest of the public it builds faith in the financial system. This also relieves the people from doing their own research and analysis before […]

Enabling conditions for positive impact for MFI clients

There are certain enabling conditions under which the clients are likely to benefit more from provision of microfinance. Our research indicates that the following enabling conditions allow clients to benefit more from provision of microfinance. Skills: In almost all the instances where positive impact has been witnessed, clients had required skills necessary for the enterprise […]

“Drive to Perform” of Operational Employees of MFIs

The operational employees of MFIs have challenging work life which includes extensive work in the field as well as back-office work. At the same time, these employees are the key to an MFI’s success as their efforts are responsible for the growth as well as the quality of MFI loan portfolios. More importantly, they are […]

M2i Discussion Note: Credit Risk Management in MFIs

The credit risk measurement systems in MFIs need to evolve substantially in order to sustainably provide collateral-less loans to poor clients. While lending through the group guarantee mechanism has ensured sound portfolio quality for long periods of time, we have in the recent past witnessed situations when there has been a rapid decline in portfolio […]