Financial Analysis for Microfinance Institutions

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In order to create a sustainable institution, microfinance institution (MFI) managers need to have the skills to analyze the financial health of their MFI. This three to four day course provides participants with an understanding of the different ratios used by microfinance institutions, what they mean, and how they can be used to keep track of an institution’s financial performance over time. The analysis is based on financial statements that reflect management needs for clear organized financial information. Participants learn how to format financial statements for decision making, adjust for inflation and subsidies, measure portfolio quality, asset/liability management, efficiency and productivity and profitability and to choose strategies to reach sustainability.

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CGAP is pleased to make the course materials from the CGAP Skills for Microfinance Managers course series publicly available. Although the course materials have been well tested and revised CGAP cannot ensure that the materials and all calculations are fully accurate. The microfinance industry continues to evolve and new standards continue to emerge. As a result, the course materials may not reflect the latest practices in the

microfinance industry. Although CGAP has made every attempt to produce high-quality course materials, ultimately it is the technical skills, training experience and preparation of the trainers that guarantee the quality of the course itself and the successful transfer of skills and knowledge to course participants.

Please note that CGAP recognizes only those partners and trainers that went through its certification process as CGAP training partners from 1997 to 2008. Others who offer a course using materials from one of the CGAP Skills for Microfinance Managers courses should not refer to themselves as CGAP trainers or CGAP-certified.

CGAP also requests that all those who offer the "Financial Analysis for Microfinance Institutions" course use the following text in their marketing materials and course descriptions: “The 'Financial Analysis for Microfinance Institutions' course is based on the materials developed by CGAP that are publicly available on CGAP is a leading independent resource for objective information, expert opinion, and innovative solutions for microfinance. CGAP works with the financial industry, governments and investors to expand access to financial services for poor people around the world.”


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