Microfinance handbook : an institutional and financial perspective / Joanna Ledgerwood.

At head of title: Sustainable Banking with the Poor.

Includes bibliographical references and index.

Ch. 1. Understanding the Country Context. Suppliers of Financial Intermediation Services. Financial Sector Policies and Legal Enforcement. Financial Sector Regulation and Supervision. Economic and Social Policy Environment. App. 1. Risks in the Microfinance Industry Ch. 2. The Target Market and Impact Analysis. Objectives of the Microfinance Institution. Direct and Indirect Targeting. The Importance of Adequate Cash Flow and the Capacity to Service Debt. Identifying the Target Market. Impact Analysis. App. 1. Quantitative Impact Assessment Ch. 3. Products and Services. The Systems Framework. Microfinance Institutions Minimalist or Integrated? Financial Intermediation. Social Intermediation. Enterprise Development Services. Social Services. App. 1. Microfinance Approaches App. 2. Matching Enterprise Development Services to Demand Ch. 4. The Institution. The Importance of Institutions. Institutional Types. Institutional Growth and Transformation. Institutional Capacity Building. App. 1. MFI Operational Review App. 2. Manual for Elaboration of a Business Plan Ch. 5. Designing Lending Products. Cash Patterns, Loan Terms, and Payment Frequency. Loan Collateral. Loan Pricing. Calculating Effective Rates. App. 1. How Can an MFI Set a Sustainable Rate on Its Loans? App. 2. Calculating an Effective Interest Rate Using the Internal Rate of Return Method App. 3. Calculating the Effective Rate with Varying Cash Flows Ch. 6. Designing Savings Products. Demand for Savings Services. Is There an Enabling Environment? Does the MFI Have the Necessary Institutional Capacity to Mobilize Savings? Sequencing the Introduction of Savings Services. Types of Savings Products for Microentrepreneurs. Costs of Mobilizing Voluntary Sav

Microfinance is not simply banking; it is a development tool. It has been estimated that there are 500 million economically active poor people in the world operating microenterprises and small businesses. Most of them do not have access to adequate financial services. The purpose of this Handbook is to bring together in a single source guiding principles and tools that will promote sustainable microfinance and create viable institutions. The Handbook takes a global perspective, drawing on lessons learned from the experiences of microfinance practitioners, donors, and others throughout the world.This volume covers extensively matters pertaining to the regulatory and policy framework and the essential components of institutional capacity building, such as product design, performance measuring and monitoring, and management of microfinance institutions.The handbook has three parts. 'Issues in Microfinance Provision' - Part I, takes a macroeconomic perspective toward general microfinance issues and is primarily nontechnical. 'Designing and Monitoring Financial Products and Services' - Part II, narrows its focus to the provision of financial intermediation, taking a more technical approach and moving progressively toward more specific (or micro) issues. 'Measuring Performance and Managing Viability' - Part III, is the most technical part of the handbook, focusing primarily on assessing the viability of microfinance institutions.