New tier definitions for microfinance institutions will help investors
The microfinance industry is in need of an objective set of criteria that acts as a proxy for the maturity of microfinance institutions. Microrate has come up with a set of definitions that will help promote clarity and transparency in the industry.
Historically, the microfinance industry referenced a system of three or four “tiers" to differentiate between MFI types. However, the definitions were often vague or based on a single indicator such as size.
With the help of the e-MFP Action Group of Investors in Tier 2/3 MFIs, Microrate has just published a new set of criteria that will help bring consistency and transparency to the industry.