New Financial Ratios for Microfinance Reporting

Over the past decade, there has been an industry wide effort to identify and implement financial reporting standards for microfinance institutions. The objective is to provide uniform financial information for all MFIs, regardless of size, maturity or geographic location to managers and stakeholders including investors, donors, raters, MIS software developers, and associations. This promotes transparency, facilitates comparability, improves decision-making, and increases investment by making it easier to observe and understand an MFI’s financial health.

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