What are the Benefits of a Microfinance Rating? Nairobi, October 2009 Caterina Giordano MicroFinanza Rating Africa Africa Regional Manager.

Slides:

Advertisements

Similar presentations

STRENGTHENING FINANCING FOR DEVELOPMENT: PROPOSALS FROM THE PRIVATE SECTOR Compiled by the UN-Sanctioned Business Interlocutors to the International Conference.

Advertisements

Brussels, May 2009 Awareness and Public Opinion results from: Evaluation of the means used by national Data Protection Authorities in the promotion.

Open Days 2007 Micro-credits for Regional and Local Development Brussels, 10 October 2007.

ResponsAbility Social Investments AG Risks and microfinance AMFA CONFERENCE.

Credit Rating. Meaning Credit Rating is the opinion of the rating agency on the relative ability and willingness of the issuer of a debt instrument to.

SOCIAL PERFORMANCE TASK FORCE 1 An Introduction to Social Performance Making Microfinance Matter for Clients and Their Families: Ensuring a Social Performance.

Microfinance - SIDBI’s Perspective Lending & Investment P. K. Saha Chief General Manager.

European Microfinance Network 4th Annual Conference Microfinance in a Banking Environment Models, Experiences, the Way Forward "Research in European Microfinance”

BRD Sogelease 1 BRD SOGELEASE Just a glance on the past … or the story of a start-up in Romania JP Decrock- General Manager Piata de Leasing Hilton

Project Monitoring Evaluation and Assessment

Investing in Employment and Entrepreneurship

1 IIFREE, NOVEMBER 16 th -18 th 2014 INTERNATIONAL INVESTMENT FORUM FOR RENEWABLES ENERGY & ENERGY EFFICIENCY FOR MENA Gianni Chianetta.

Role of Services in Economic Development

EBRD Financial Institutions Portfolio Financial Institutions: €6.7 billion * as at December 2007 * Commitments outstanding € mn Sector Distribution: Continuing.

Sanitation markets The role of microfinance to support access to sanitation Sophie Trémolet, DFID, 19 th November.

The Role of Stakeholders In Corporate Governance Dr. Demir Yener Center for International Private Enterprise Washington, D.C. Fourth Meeting of the Eurasian.

Occupational Health & Safety & Socially Responsible Investment.

Presentation by Dr. Andreas O. Tobler November 5, 2009.

SOLAR PARK TP Nchocho Group Executive: Investment Banking Division 28 October 2010 Development Bank of Southern Africa.

Qatar Financial Centre Regulatory Authority GCC Regulators Conference: Why Is Good Corporate Governance Important? 23 February 2010 Michael Lesser, Managing.

State Bank of Pakistan Various Departments

responsAbility Social Investments AG

October 16, 2012 Governor’s Housing Conference What's a CDFI and How Are They Helping Communities Access Capital Tracy Kartye The Annie E. Casey Foundation.

Performance Measurement and Analysis for Health Organizations

Social Performance Management Microfinance India Conference November 15, 2010 Laura Foose.

Rome Energy Meeting 2008 Rome, November 2008 Investments Opportunities and Project Finance in the Energy Market Luigi Marsullo President Finpublic.

Microfinance in fragile states The perspective of AFD November 30th 2010.

Armenia and Diaspora Armenia’s investment climate and Diaspora’s participation in development policies. Hayk Sargsyan, Johns Hopkins University.

Adaptation knowledge needs and response under the UNFCCC process Adaptation Knowledge Day V Session 1: Knowledge Gaps Bonn, Germany 09 June 2014 Rojina.

Regulation and Sustainability A set of tasks and responses – varying by structure and stage Dennis Volk Programme Officer.

Benoît ESNAULT Commission de Régulation de l’Energie 17th Madrid Forum Madrid, 15 January year network development plan ERGEG recommendations.

Hillsdale Financial Services Portfolio Profiles. Aggressive Portfolio Risk tolerance score of 19–24 points Investor must be willing to accept additional.

JUNE 2009 Presented by: Emmanuelle Javoy, Managing Director Social Performance Task Force – Madrid 2009 Social Performance Ratings Planet Rating 13 rue.

APEC ENERGY WORKING GROUP FRAMEWORK PROPOSAL FOR IMPLEMENTING ENERGY INVESTMENT RECOMMENDATIONS (November 2004).

Risk Identification in Practice Solange Berstein Chair IOPS Technical Committee Superintendent Pension Supervisor Chile.

Discussion Proposal SPTF Meeting Bern, June 2010 Towards a Social Performance Certification System.

FSA - The Financial Supervision Authority Nele Piir, Marge Laan, Kadri Toks.

“Procurement Reforms and Capacity Building: Embedded in Public Financial Management” HLF on Public Procurement Reforms in Africa: Tunis Nov 2009.

Risk Identification in Practice Solange Berstein Chair IOPS Technical Committee Superintendent Pension Supervisor Chile.

Corporate Social Responsibility LECTURE 25: Corporate Social Responsibility MGT

Introduction to Social Audits. Assessing Social Performance Process Results Audit ToolsRating Tools Intent & Design Internal Systems/ Activities OutputsOutcomes.

Moscow, Russia November 19th, 2009 Symbiotics SA Jerome Savelli Regional Manager Europe and Asia 2009 Russian Micro finance Center Conference “Microfinance.

MiniGrid Group NEP Off Grid Electrification Breakout session.

Mission To expand the economic assets, participation, and power of low-income women and their households by helping them.

Beirut - May 2009 The Human Impact: Measuring Changes in Client’s lives Barbara Marcussen Microfinance Officer Sanabel 6 th Annual Conference OIKOCREDIT.

M I N I S T R Y O F I N D U S T R Y, E M P L O Y M E N T A N D C O M M U N I C A T I O N S OECD Guidelines on Corporate Governance of State Owned Enterprises.

Beirut - May 2009 Foreign Commercial Investment in Microfinance – Overview of Market Trends Cedric Lombard Director Sanabel 6 th Annual Conference Symbiotics.

The Business Plan: Creating and Starting the Venture

1 FAO REGIONAL WORKSHOP ON RICE AND AQUACULTURE FOR PRODUCTIVITY INCREASE AND MARKET DEVELOPMENT IN EAST AFRICA, KAMPALA,UGANDA, APRIL 2009 AQUACULTURE.

Balancing Financial and Social Returns Frances Sinha, Director, EDA Rural Systems (India) and board member of SPTF Alok Misra, CEO, M-CRIL December 2,

Implementation of Insurance Core Principles and FSAP Evaluations The Portuguese FSAP experience Gabriel Bernardino Instituto de Seguros de Portugal.

EuropeAid EU/ACP Microfinance Programme II. EuropeAid  Overview of the EU cooperation in ACP countries  EU/ACP Microfinance Programme presentation 

Social Performance in Microfinance Introduction to Social Rating.

International Network Of Basin Organizations topic 3.1: “Basin Management and Transboundary Cooperation”. Operational tools  Long term basin management.

Market Analysis Different jurisdictions-inter connected Segments of financial Sector IDENTIFY:  Risks and vulnerabilities  Trends and future scenarios.

Organization  As a member of the Strategy & Business Development team, this position will support the development and execution of Corporate, Sector,

Outcomes of the Namibia Water investment Conference Mr Abraham Nehemia Under Secretary for Water Affairs and Forestry 14 September 2012 Ministry of Agriculture,

The Role of Equity Funds in Microfinance IDB Forum on Financing MFIs Santa Cruz, Bolivia September 2005 Elisabeth Rhyne Senior Vice President ACCION International.

SPM Essentials Module 6- Social Audit & Social Rating.

Danida support to the microfinance industry. Overall objectives of Denmark’s development cooperation Overall objective To combat poverty and promote human.

ISO 37001: Anti-Bribery Management System Standard

SOCIAL PERFORMANCE MANAGEMENT Implementation Strategy for Networks _____________________________ Jordan June 5th, 2012.

ISO 37001: Anti-Bribery Management System Standard

Tracking development results at the EIB

ISO 37001: Anti-Bribery Management System Standard

Incentives and Cross-border Cost Allocation in the Energy Infrastructure Package Benoît Esnault (CRE) Chair of the ACER Gas Infrastructure Task Force.

Experiences, success criteria and mistakes to avoid when trying to identify varieties with high market potential and wining investment support for seed.

ISO 37001: Anti-Bribery Management System Standard

ISO 37001: Anti-Bribery Management System Standard

Professional capacity for better service delivery

Presentation transcript:

What are the Benefits of a Microfinance Rating? Nairobi, October 2009 Caterina Giordano MicroFinanza Rating Africa Africa Regional Manager

Users and use: Nairobi, October 2009 MFI management for internal and external use (diagnostic, external presentation) Donors, social and commercial investors, regulatory and supervisory authorities (assessment tool facilitating the access to subsidies, investments and the supervision)

Why using a rating? Nairobi, October 2009  For the MFI:  Access to external financial resources (independent evaluation)  Improve performance  Systematize flow of information towards stakeholders  Performance benchmarking against other MFIs

Nairobi, October 2009  For donors:  Contribute to the development, professionalization and transparency of the sector  Improve their performance in terms of objectives/resources allocation  Standardize assessment and monitoring tools  Facilitate the coordination and potential synergies with the investors Why using a rating?

Nairobi, October 2009 Why using a rating?  For the investors:  Improve the selection process and monitoring  Better understand risk profiles of the MFIs  Define the minimum INTERNAL RATE OF RETURN (IRR) of the investment

Why using a rating?  A second opinion which helps to focus on specific RISK AREAS (during the investor due diligence, after the investor due diligence to confirm or analyze in depth some relevant risk areas, etc)  Standardized information: basis for monitoring of the performance and risk of their investments

Nairobi, October 2009 How those reasons interact? The MFI need of accessing external financial resources facilitates the growth of rating market The benefits for the MFIs in terms of performance improvements : after the 1st rating The majority of the investors are systematically using ratings

Nairobi, October 2009 Rating Market  In 2007 ratings in the microfinance sector grew of 19.5% with 539 ratings  2280 : cumulative number of microfinance ratings since MFIs having done a rating between 1997 and 2007

Nairobi, October 2009 Trends

Trends… 1.Growing number of investments in the microfinance sector 2.MFIs need of attracting more resources to feed their growth We can demonstrate that these factors have had a positive effect on the Ratings demand

Nairobi, October 2009 This trend has been confirmed in 2007 by a 35% growth of the international investments in the MFIs (USD 5,7 milliards). Trends…

Nairobi, October 2009 How to use a rating… The Rating is not only a product (report) but also a process towards transparency and a better quality of services Ratings seem to be an Investor tool while as a transparency process are concerning all the private and public stakeholders (donors, networks, regulators, etc)