小额信贷专业词汇英文释义

2024年3月19日发(作者：喻宜萱)

AbilitytoPay:Afuzzyconceptthatdoesnotrornotsomeonecommandnoughresourcestocontractatransaction(cashorcredit)ytopayisasubje,thelow-incomeclientsaresaidtohavealowerabilitytopaythanmiddle-incomeearners,irrespectiveofwhetherornottheybuythegood/clearwhethertheexponentsoftheability-to-pa:VirtualLibraryonMicrocreditAccumulatingSavingsandCreditAssociations(ASCAs):ICA,allmembersregularmbersborrowwhileothersaresaversonly,andborrowerspayinterestontheirloans,thereturntos:CGAPActiveClients:itution'sofficialstatisticsonactiveclientsareusuallyrecordedasthenumberofcli:ACCIONActiveLoanPortfolio:,allmoneythatis"onthestreet":ACCIONAffordability:Avariantoftheability-to-thingis"unaffordable"topoorpeoplethismightmeantheyshouldnotpurchaiteveniftheychooto!Theargumentisthatitwillreducetheincometheyhaveavailabletospendo,poorpeople"shouldnot"smokenordrinknorbuyentertainmentwithsuitistheideathatthedonor/benefactorshouldmaketurnimpliesthatwhenpricesarelessthancosts,someonemustanteupasubsidytocoverthedifferenceumerdemandtheory,emporarysocialsciencewriting,"abilitytopay"licitassumptionhereisthateventhoughpeoplearewillingandactuallydopayacertainamount,,water)resultsinalossofconsumptionofsomeothergoodorrviceandplacesthepurch:VirtualLibraryonMicrocreditApexScheme:Wholesalefinancing,cond-tierlending,:CalmeadowAsssment:mentsincludeinstrumentalappraisals,ratingexercis,andotheractivitiesthatmaydeterminehowwellaninstitutionperformsfinancially,operationally,:ACCIONAstLiabilityManagement(ALM)

Theprocessofplanning,monitoringandcontrollingastandliabilityvolumes,maturities,rygoalofALoreimportantandcomplexforinstitutionngagedinfinancialintermediationbecauinterestraterisktendstobehigherfortheialinstitutionsmanageinterestrateriskbycarefullymaintainingabalancebetweendifferenttypesandvolumesofasts(inparticular,loans)andliabilities(inparticular,savings).Source:CGAPAsts:erestin:RenzandMassarskyAudit/Control:Examinationoforganizationalinput/outputcashflow(alaudits,externalaudits,fraudinvestigation).Source:CalmeadowAverageLoanBalanceperBorrower:GrossLoanPortfolio/:TheMIXMarketAverageNumberofActiveBorrowers:(BeginningyearNumberofActiveBorrowers+YearendNumberofActiveBorrowers).Source:TheMIXMarketAverageNumberofActiveBorrowers::TheMIXMarketAverageSavingsBalanceperSaver/GNIperCapita(%):AverageSavingsBalanceperSaver/bt::RenzandMassarskyBalanceSheet:Financialstatementprentingmeasuresoftheasts,liabilitiesandowner'quityornetwort:RenzandMassarskyBank:Alicenrovideanyofanumberoffinancialrvices,including:deposittaking,lending,paymentrvices,:TheMIXMarketBankable:Bankablepeoplearethodeemedeligibletoobtainfinancialrvicesthatcanleadtoincomegeneration,repaymentofloans,savings,:InternationalYearofMicrocredit2005Benchmarking:Peergroupbenchmark,anMFI)withsimilarinstitutionsbadonacommonfactor,suchasregion,markcanalso:ACCIONBorrowersperStaffMember:NumberofActiveBorrowers/:TheMIXMarketBridgefinancing:InterimfinanIONLatinAmericaBridgeFundp:ACCIONBridgeLoan:Short-termloanto:RenzandMassarsky

BusinessDevelopmentServices:Supportrvicesthatcontributetothegrowthofenterpris(ssplanning,clienttraining,networking,marketingtechnicalsupport).Source:CalmeadowBusinessPlan:Adocumentthatdescribesanorganization'rallyprojectsfutureopportunitiesfortheorganizationandmapsthefinancial,operations,marketingandorganiz:RenzandMassarskyCCAMEL:lRerve-developeddiagnostictoolthatmeasurestheCapitaladequacy,Astquality,Management,adaptedtheCAMELinstrumenttothemicrofinanceindustrya:ACCIONCapitalAdequacy:Aquantitativeandqualitativemeasureofaninstitution'asurementshowsaprogram':ACCIONCapitalmarkets:Themarketfortradinglong-termdebtinstruments(thothatmatureinmorethanoneyear).Source:ACCIONCapitalMarkets:Thofinancialmarkets,includinginstitutionsandindividuals,thatexchangecurities,:RenzandMassarskyCapital:Broadly,allthemoneyandotherprop:RenzandMassarskyCapitalization:Long-termdebt,ncapitalofacommunitydevelopmentloanfund;includesthatwhichhasbeenborrowedfromandisrep"permanentcapital").Source:RenzandMassarskyCashFlowFinancing:Short-termloanprovidingadditionalcashtocovercashshortfallsinanticipationofrevenue,suchasthepayment(s):RenzandMassarskyClientDertion::CalmeadowClientGraduation:Microenterpri:CalmeadowClientsbelowpovertyline(%):Percentageclientsbelowpovertyline(wherethepovertylineisdefinedaspopulationlivingonlessthanUS$2/day).Source:TheMIXMarketClientsinbottomhalfofthepopulationbelowthepovertyline(%):Percentageclientsinbottomhalfofthepopulationbelowthepovertyline(wherethepovertylineisdefinedaspopulationlivingonlessthanUS$2/day).Source:TheMIXMarketClientsinhouholdarninglessthanUS$1/dayperhouholdmember(%):PercentageclientsinhouholdarninglessthanUS$1/:TheMIXMarketClientsstartingmicroenterpriforthefirsttime(%):PercentageclientswhoaccessfinancialrvicesfromtheMFIandwhoarestartingamicroenterpriforthefirsttime.

Source:TheMIXMarketCollateral:Astpledgedbyaborrowertocurealoan,rofinancecontext,collateralcanvaryfromfixedasts(acar,awingmachine):ACCIONCollateral::RenzandMassarskyCommercialization:Inamicrofinancecontext,commercializationreferstothemovebyMFIstoprovidervicesonafinanciallylf-suf:ACCIONCommunityEconomicDevelopment:NormallyudbyNorthAmericanorganizations,thefocusissupportingcommunitieswithgoalsofcreatinglocalemployment,preventingrura:CalmeadowCommunityEconomicDevelopment:CommunityEconomicDevelopmentisaprocessbywhichcommunitiescaninitiateandgeneratetheirownsolutionstotheircommoneconomicproblemsandtherebybuildlong-termcommunitycapacityandfostertheintegrationofeconomic,:VirtualLibraryonMicrocreditCommunity-badfinanceinstitution:Theterm"Community-badfinanceinstitution"(CBFI)hasbeenformulatedtodefineorganizationswhichenablelow-incomegroupstoparticipatefullyanddemocraticntly,theorganizationsarereferredtoasco-operatives,butsomecommunity-badorganizationsarein:VirtualLibraryonMicrocreditCompulsory/MandatorySavings:Savingspaymentsthatarerequiredaspartofloantermsorasarequirementformembership,usuallyinacreditunion,cooperative,microfinanceinstitution,unt,timing,andlevelofaccesstothedepositssorysavingspoliciesvary:depositsmayberequiredweeklyormonthly,beforetheloanisdisburd,whentheloanisdisburd,and/smaybeallowedtowithdrawattheendoftheloanterm;afteratnumberofweeks,monthsoryears;:CGAPContractual/ProgrammedSavings:Savingsinwhichtheclientcommitstoregularlydepositinghematuritydate,ctualproductshelpdepositorsaccumulatefundstomeetspecificexpectedneeds,suchaxpensassociatedwithschool,afestival,anewbusiness,anequipmentpurcha,sohelpfinancialinst:CGAPCooperative/CreditUnion:Anonprofit,fferarangeoffinancialrvices,includinglendinganddeposittaking,otregulatedbyastatebankingsupervisoryagency,itm:TheMIXMarketCo-operative:Aco-operative,asdefinedbytheInternationalLabourOrganizationisanassociationofpersons,usuallyoflimitedmeans,whohavevoluntarilyjoinedtogethertoachieveacommoneconomicendthroughtheformationofademocraticallycontrolledbusinessorganization,makingequitablecontributionstothecapitalrequ:VirtualLibraryonMicrocreditCostperBorrower:OperatingExpen/:TheMIXMarket

Costtoregisterabusiness(%ofGNIpercapita):Costtoregisterabusinessisdefinedasthetotalcostitixpresdasapercentageofcountry'sGNIpercapita.(Thecostscalculatedhereexcludebribes).Source:TheMIXMarketCovenant:Anagreementorpromitodoornottodoaparticularthing;toenterintoaformalagreement;lowingarefunctionalobjectivesguidingmostcovenants:fulldisclosureofinformation,prervationofnetworth,maintenanceofastquality,maintenanceofadequatecashflow,controlofgrowth,controlofmanagement,assuranceoflegalexistenceandconceptofgoingconcern,:RenzandMassarskyCreditBureau:Anagencythatcontainsinformationonthecredithistor:ACCIONCreditRating:Usuallyudtodetermineabankorfinancialinstitution'screditrisk,acreditratingisanevaluationofanindividual'sorcompany'sabilitytorepayobligationsoritslikelihoodofnotdefaulting;:ACCIONCreditScoring:Measurestheriskassociatedwitheachcreditapplicant/scoringisanautomatedsystemthatassignspointsforvariouscreditfactors,providinglenderswiththeabilityrofinancecontext,thecreditscoringmethodismodifiedtotakeintoaccountamicroentrepreneur'xperience,alcredits:ACCIONCreditUnion/Savings&CreditCooperative/FinancialCooperative:Not-for-profitmember-ownedfinancialinstitutionsthatare1)governedbyaboardofdirectorscompridofmembersand2)typicallymanagedbyrdilectedbythemembers,unionsandfinancialcooperativesaretypicallysavings-bad,ndtunionsandfinancialcooperativesmustberegistered;theymayberegulatedbyaspecialrdstoutincooperativelawmaybesomewhateasiertomeetthanthointhecountry抯bankinglaw;forexample,thecapitaladequacyrequirements梚ftheyexist梞ametime,cooperativesmaynotbeallowedtoofferthesamerangeofrvicesasbanks;theymaynot,forexample,reditunionsandfinancialcooperativesareregulatedbythesameentityasotherfinancialinstitutions,theymustcomplywithregulationsissuedeitherspecificallyforf:CGAPCreditUnion:Anonprofit,editunionsareorganizedtorvepeopleinaparticularcommunity,grouporgroupsofemployees,:ACCIONCreditUnion:Inthefinancialctor,co-operativeswhichenablesavingstobemadeandloanstobetakenaregenerallyknownas"creditunions"whichareregiccreditunioniscompodofagroupofpeoplehavinga"commonbond"whomayberesidentinthesameneighbourhoodoremployedatthesameplaceofwork,ncipalreasonfortheemphasisonacommonbondisthatthesocialpressureofthegroupisconsideredaveryimportantconditionascurityforloa:VirtualLibraryonMicrocreditCreditUnions(includingCreditCooperatives):Community-bad,financialco-operativesthatarenormallydemocraticandnon-profit,withsavingsmechanismsand

sinvestinshares,givingthemcertainentitlements(onofboardsorvotingonpolicy).Source:CalmeadowCurrentAccounts:Dematholderscanalsotransactface-:CGAPCurrentAst::RenzandMassarskyCurrentLiability::RenzandMassarskyCurrentRatio:lly,thehighertheratio,thegreaterthe"cushion"betweencurrentobligationsandafirm':RenzandMassarskyDDebtServiceRerve:Termudtorefertocashrervestasidebyaborrower,eitherbyinternalpolicyorlendercovenant,t:RenzandMassarskyDebtService:Amountofpaymentdueregularlytomeetadebtagreement;usuallyamonthly,:RenzandMassarskyDebt:tmaybeowedtoanorganization'sownrerves,individuals,banks,lly,thedebtiscuredbyanote,bond,mortgage,e,inturn,:RenzandMassarskyDefault:mismostoftenudtodescribetheoccurrenceofaneventthatcutsshorttherightsorremediesofoneofthepartiestoanagreementorlegaldispute,forexample,thefailureofthemortgagortopayamortgageinstallment,:RenzandMassarskyDefault:Failuretomaketimelypaymentofinterestorprincipalonaloan,:ACCIONDelinquent:Inamonetarycontext,:RenzandMassarskyDemand/SightDeposit:Fullyliquidaccountsinwhichthesavedeposittransactions(deposits,withdrawals,transfers/payments)maybemadeusingpassbooks,debitcardsandATMsand/orPOSdevices,and,incurrentaccounts,ntsoverdrawtheirdemanddepositaccounts,financialinstitutionsgenerallychargepenaltiesand/:CGAPDepositInsuranceInsurancetoreimburdepositorsforthetinsuranceistyptinsurancedoescarryarisk:byassuringthatdepositorswillnotlotheirsavingsifabankgoesunder,itcan1)underminedepositors?motivationtooveretheinstitutionsinwhichtheydepositand2)encouragemanagerstotakeonmoreriskthantheyotherwi

:CGAPDepositinterestrate(%):Depositinterestrateistheratepaidbycommercialorsimilarbanksfordemand,time,:TheMIXMarketDepositRates:Usuallyreferstoratesofferedtoresidentcustomersfordemand,time,,ratesfortimeandssavtion,depositmoneybanksandsimilardeposit-takinginstitutionsmayoffershort-andmediumtermsinstrumentsaspecifiedratesforspecificamountsandmaturities;thearefrequentlytermed揷ertificatesofdeposit?Source:TheMIXMarketDevelopmentBank:Generallycountry-ownedandstate-bad,thebanksofferedagricu:CalmeadowDevelopmentFinance:Termthatencompassallfinancialrvicesprovidedtolow-incomeclienteleinlessdevelopednations-includingmicroloans,microsavings,microinsurance,:ACCIONDisburment:burmentofamicroloanreflectst:ACCIONDonations:Donationsrecei:TheMIXMarketDownscaling:Formalfinancialinstitutionst:CalmeadowDueDiligence:Referstothetaskofcarefucludesverifyingsourcesofincome,accuracyoffinancialstatements,valueofaststhatwillrveascollateral,thetaxst:RenzandMassarskyEEmpowerment:Impactofdesignforpoliticalparticipation,legalawareness,:CalmeadowEndowmentorTrust:Afundthatconta:RenzandMassarskyEnvironment:Impactofprogramsonthenaturalenvironment,:CalmeadowEquityParticipation:Anownsontheinv:RenzandMassarskyEquity:investmentstypicallytaketheformofanowner'sshareinthebusiness,andoften,ashareinthereturn,investmentscarrygreaterriskthandebt,:RenzandMassarskyExchangeRates:

PriIXMarketEnvironmentctiontheeusingdatafromtheIFS/iodaverageratesthedataarebadinthemonthlyaverageofmarketratesorofofficialratesofthereportingcountry(andprincipal,condaryortertiaryratesforcountriesmaintainingmultipleexchangeagreements).Theestimatesarederivedonthebasisofasimpleavera:TheMIXMarketExternalAudit:Aformal,independentreviewofaninstitution'sfinancialstatements,records,alauditsareusuallyperformedbyprofessionalaccountantsinordertolendcredibilitytofinancialstatementsandmanagementreports,toensureaccountabilityfordonorfunds,:ACCIONFFinancialDepth:Liquidliabilities(M3)as%liabilitiesarealsoknownasbroadmoney,ethesumofcurrencyanddepositsinthecentralbank(M0),plustransferabledepositsandelectroniccurrency(M1),plustimeandsavingsdeposits,foreigncurrencytransferabledeposits,certificatesofdeposit,andcuritiesrepurchaagreements(M2),plustravelerschecks,foreigncurrencytimedeposits,commercialpaper,:TheMIXMarketFinancialExpen:Allinterest,feesandcommissionsincurredonallliabilities,includingdepositaccountsofclientsheldbytheMFI,commercialandconcessionalborrowings,mortgages,:TheMIXMarketFinancialIntermediationTheprocessofmobilizingdepositsanddisbursingthemasngfinancialinicular,maintainingthequalityofastsismoreimportantinordertoprotectthevalueofdepositsandmanagingliquidity,internalcontrolsandastsvis-?:CGAPFinancialManagement:Financialmanagementisabroadtopicinmicrofinanceoperationmanagementincludinginterestratetting,revenuegeneration,costanalysis,delinquencymanagement,profitcentres,:CalmeadowFinancialRevenue(Total)::TheMIXMarketFinancialRevenue:Incl:TheMIXMarketFinancialSelf-Sufficiency(FSS):Totaloperatingrevenuesdividedbytotaladministrativeandfinancialexpens,rofinancecontext,aninstitutionisfinanciallylf-sufficientwhenithanoughrevenuetopayforalladministrativecosts,loanloss,:ACCIONFinancialServicesDevelopment:Innovativervicesformicrocreditclients?easing,insurance,:CalmeadowFixedAsts:Long-livedpropertyofamicroentrepreneurorfirmthatisudinthatbusiness',awingmachineisafixedastforamicroentrepreneurwhomakesclothing).Fixed-astlendingisatypeofmicrofinanceproductthatdisbursloanxpresslyforthepurpoofpurchasingthefixedasts,whichaidinproductionvolumeandincome.

Source:ACCIONFixed-AstLending/Loan:Microfinanceproductinwhichloansaredisburdexpresslyforthepurpoofpurchasingfixedasts,:ACCIONForeignDirectInvestment,netinflows(%ofGDP):ForeignDirectInvestment(FDI)isnetdirectinvestmentthatismadetoacquirealastingmanagementinterest(usually10percentofvotingstock)inanenterprioperatinginacountryotherthanthatoftheinvestor(definedaccordingtoresidency).Theinvestor'hesumofnetequitycapital,netreinvestmentofearnings,netotherlong-termcapital,:TheMIXMarketFormalFinancialSector:Policyandprocessinvolvedwiththeformalfinancialctor,includinginterestrates,exchangerates,inflation,:CalmeadowFundAdvisor(s):Thecomp:TheMIXMarketFundAsts(US$)::TheMIXMarketFundAstsallocatedtoMFInvestments(US$):Thefund'smoniestasidespecificallyforinvestmentintheMicrofinancector(asoppodtootherindustries/ctors/typeofprojectsthatthefundmayinvestin).Source:TheMIXMarketFundAstsinvestedinorcommittedtoMFInvestments,butnotyetdisburd(US$):ThefundastsalreadyinvestedinMFctororcommittedtospecificMFIs,ybemorethantheamountinvestedanddisburd(notdetailedhere).ItisanefficiencymeasureforhowwelltheFundcommitsmoniestoMFIs(nothowwelltheFunddisbursor"handsout"themonies).Source:TheMIXMarketFundBalance:Networthinanonprofitorganization;:RenzandMassarskyFundcurrency::TheMIXMarketFundManager:Theindividual(s)responsiblefortheoverallfundstrategy,aswellasthebuyingandllingdecisionsofthecuritiesinafund'mentteamsmayconsistofmanypeople,butifonemanagerisconsideredacentralfigureorleadmanager,thatindividual'rtanceistheyearinwhichthemanagerbeganrunningthefundtodeterminehowmuchofafund'm"MultipleManagers"referstoasituationwhenmorethantwopeopleareinvolvedinthefundmanagement,histermisud,quiteoftentcas,mul:TheMIXMarketFundSubadvisor(s):Theadvisorcanemployanothercompany,calledthesubadvisor,tohandlethefund'einstances,theportfoliomanagergenerallyworksforthefund'ssubadvisor,:TheMIXMarketFungibility:Thequalityofngudasmoney(gold,shells,banknotes)gibilityofmoneymakesitdifficultforlenderstoensurethatborrowersutheloanfundsinthewaylenderswish;onewaytheytrytogetround"misuoffunds"personwillborrowmoneyforonestatedpurpo,,forexample,thatIintendtoimprovemyhouusingsavingsbutsomeoneoffersmeahomeimprovementloanon

ectoftheloanisnottoincreaqualityofthehousingstock,asthelenderintended,buttoenablemetoundertakesomeotheractivityIcouldnototherwihavefinancedbuyingamotorcycle,takingaholiday,inancelenderssuchasdonorsandNGOstendtodislikethisbecau(a)theydon'tthinkpoorpeopleshouldutheirlimitedincomesonsuchthings,and(b)itreducesth:VirtualLibraryonMicrocreditGGDP(currentUS$):Grossdomesticproduct(GDP)measuresthetotaloutputofgoodandrvicomesticproductatpurcharvalues(marketprices)isthesumofgrossvalueaddedbyallresidentandnonresidentproducersintheeconomyplulculatedwithoutmakingdeductionsfordepreciationo:TheMIXMarketGDPGrowth(annual%):GrossDomesticProduct(GDP)measuresthetotaloutputofgoodsandrvicesforfinaluoccurringwithinthedomesticterritoryofagivencountry,omesticproductatpurcharvalues(marketprices)isthesumofgrossvalueaddedbyallresidentandnonresidentproducersintheeconomyplulculatedwithoutmakingdeductionsfordepreciationo:TheMIXMarketGenderRelations:Focusonwomen抯bargainingpowerwithinthehouhold,powerimbalancesbetweenthegenders,effectsofmicrofinanceongender-relatedissues,empowermentand/orilleffectsonwomen,girl/childissues.(Alsocross-listedas憌omen?).Source:CalmeadowGeneralManagement:Generalmanagementissuesdealwiththeoveralloperations,ytermisudf:CalmeadowGeneralRecour:Rightstodemandpaymentfromthegeneralastsofthedebtor,:RenzandMassarskyGiniIndex:Giniindexmeasurestheextenttowhichthedistributionofincome(or,insomecas,consumptionexpenditure)amongindividualsorhzcurveplotsthecumulativepercentagesoftotalincomereceivedagainstthecumulativenumberofrecipients,iindexmeasurestheareabetweentheLorenzcurveandahypotheticallineofabsoluteequality,iniindexofzeroreprentsperfectequality,(grossnationalproduct,orGNP,inthe1968SNAterminology)prisGDPplusnetreceiptsofprimaryincome(compensationofemployeesandpropertyincome):TheMIXMarketGNIpercapita,Atlasmethod(currentUS$):GNIpercapita(formerlyGNPpercapita)isthegrossnationalincome,susingtheWorldBankAtlasmethod,hesumofvalueaddedbyallresidentproducersplusanyproducttaxes(lesssubsidies)notincludedinthevaluationofoutputplusnetreceiptsofprimaryincome(compensationofemployeesandpropertyincome),calculatedinnationalcurrency,satofficialexchangeratesforcomparisonsacrosconomies,althoughanalternativerateisudwhenthe

officialexchangerateisjudgedtodivergebyanexceptionallylthfluctuationsinpricesandexchangerates,pliesaconversionfactorthataveragestheexchangerateforagivenyearandthetwoprecedingyears,:TheMIXMarketGovernance:Anythingrelatedtotheactivitiesofgoverningtheorganization(fdirectors,bylaws,andsoon)Source:CalmeadowGovernance:Processbywhichaboardofdirectors,throughmanagement,guidesa:ACCIONGrossDomesticSavings(%ofGDP):GrossDomesticSonsumptionexp:TheMIXMarketGrossLoanPortfolio:Alloutstandingprincipalforalloutstandingclientloans,includingcurrent,delinquentandrestructuredloans,:TheMIXMarketGroupLending::CalmeadowGroupLending:Lendingmechanismwhichallowsagroupofindividuals-oftencalledasolidaritygroup-entivetorepaytheloanisbadonpeerpressure-ifonegroupmemberdefaults,:ACCIONGuaranteeFund:nteefundcanprovidetheorganization'sinitialaccesstotheformalfinancialctor,strengthentheorganization'scapabilitiesasfinancialinte:CalmeadowGuaranteedLoan:Apledgetocoverthepaymenhirdpartyguaranteesaloan,:RenzandMassarskyHHealth:Thisliteraturedealswiththerelationshipbetweenmicrofinanceandhealth(nutritionallevels,infantandmaternalhealth,diaanddisability).ItmayrelatetotheeffectsomfromHunger'sCreditwithEducationprogramwouldbefoundhereasitu:CalmeadowHouhold:Impactonincomelevels,education,:CalmeadowHousingFinance:Aspecializedloanproductthatallowshouholdsofbothmicroeendtobelonger-term,andinlargeramounts,aofmicrobusinessowners,:ACCIONHumanResources:Thiskeytermrelatestopersonnelincentiveschemes,staffrecruitment,profiles,establishinganinstitutionalculture

:CalmeadowIImpactLevel:Thesystem:CalmeadowImpact/TargetMarket:Thiscategoryinvestiga:CalmeadowIndigenousPopulations:FocusingontheuniquemicrofinancialneedsofFirstNations,:CalmeadowIndividualLending::CalmeadowInflationRate(ChangesinConsumerPrices):IndicesshownforConsumerPricesarethemostfrequentlyudindicatorsofinflationandreflectchangesinthecoenceisgiventorieshavingwidergeographicalcoverageandrelatingtoallincomegroups,ghtsareusuallyderivedfromhouholdexpendituresurveys(whichmaybeconductedinfrequently).Otherlimitationsmightexistintermsofcoverageofcommoditiesforpricing,incomegroups,peyresindexfo:TheMIXMarketInformalEconomy:Theterm"informaleconomy"becamecurrentinthe1970sasalabelforeconomicactivitieswhichtakeplaceoutonomicactivitiesarecharacterizedbytheILOashavingthefollowingfeatures:smallsizeofoperations,relianceonfamilylabourandlocalresources,lowcapitalendowments,labour-intensivetechnology,limitedbarrierstoentry,highdegreecompetition,unskilledalbusinessusuallydonotcomplywithestablishedregulationsgoverninglabourpractices,:VirtualLibraryonMicrocreditInformalFinanceSystem:"Informal"mmunity-badfinancialinstitutionsareformalorganizations,verygroupexhibitssomedegreeofformality,theterm"informal":alSavings:alsavingsmechanismsincludesavingathome?incashorkind,savingsgroups,rotatingsavingsandcreditassociations(ROSCAs),accumulatingcreditandsavingsassociations(ASCAs),throughreciprocalsavingsandlendingwithneighborsorrelatives,andwithmoneyguards(friendsorrelativeswillingtoholdasaver抯moneyforaperiod)orinformalctordepositcollectors(peoplewhochargeafeetoholdasaver抯moneyforadeterminedperiod).Informalsavingsdevicesareoftenhighlyconvenientbutmaybeunreliable,incureand/cialinstitutionshouldhaveasolidunderstandingofthelocalinformalsav:CGAPInformalSector/Economy:Asubtoftheeconomyconsistingoflf-ownedenterprisandtheenterprisofinformalemployers,inessofthenfeaturesoftheinformalctorareeaofentry,lf-employment,small-scaleproduction,labor-intensivework,

lackofaccesstoorganizedmarkets,:ACCIONInformalSector:Dealswithstudiesontheinformalctorandthemicro/:CalmeadowInformalSector:Dealswithstudiesontheinformalctorandthemicro/:CalmeadowInterestRateRisk:Theriskassociatedwithchangesinmarketinterestratesthatcanharmafinancialinstitution抯cialinstitutionexpositlftointerestrateriskwmple,anincreainmarketinterestratesondepositsmightforceafinancialinstitutiontoimmediatelyincreatheinterestrateitpaysoametime,iftheinstitution抯earningastsareconcentratedinlong-term,fixed-rateloans,itdoesnothavetheethefinancialinstitutioncannotincreaitsinterestincomefromloansasfastasitscostoffundsisrising,profitatively,ifthemarketinterestratechargedonloansdrops,afinancialinstitutioncouldbesqueezedsinceitcannotdroptherateitpaysoutondepositsbelowzero;inthisca,utionsthathavethecapacityandregulatoryapprovaltodosolendonavariableratebasist:CGAPInterestRateSetting:Thiskeytermisudforresourcess:CalmeadowInterestratespread(lendingrateminusLIBOR):Interestratespreadistheinterestratechargedbybanksonloanstoprimecustomersminustheinterestratepaidbycommercialorsimilarbanksfordemand,time,eadoverLIBOR(Londoninterbankofferedrate)istheinterestratechargedbysthemostcommonlyre:TheMIXMarketInterestRateSpreadThedifferencebetweentheratethanciallysustainableinstitution,thisspreadislargeenoughtocoveroperatingcosts,theopportunitycostofholdingliquidrervesthatearnnoorlowinterest,lossinthevalueoftheinstitution抯astsduetoinflation,:CGAPInterimFinancing:Short-termloanto:RenzandMassarskyIntermediaries:Ntaincapitalintheformofequityandlowinterestloansfromavarietyofsources,includingfoundationsandotherfunders,toforma"lendingpool."Theythenrveas"wholesalers""economyofscale"oftenallowsintermediariestobemoreefficientthanafo,intermediariesoftendevelopexpertiinapartiontextofthisstudy,non-financialintermediariesincludecommunityfoundationsandfinancialintermediariesincludecreditunions,venturecapitalandloanfunds,banks,:RenzandMassarskyInternalControlsPoliciesandproceduresdesignedtominimizeandmonitoroperationalrisks,etheunpredictablesizeandtimingofcashdepositsmakefinancialinstitutionsparticularlyvulnerabletofraudanderrors,institutionsthatmobilizedepositsmustimplementrigorousinternalcontrolpoliciesand

ialcontrolsinclude:boardapprovalandmonitoringofinformation;rotationandgregationofduties;dualcontrolofsafesandvaults;establishedlimitsoncashholdingsandexpenditures;signaturerequirements;cashmanagementprocedures;dailybalancingofcashdrawerswiththegeneralledger;receiptsforalltransactions;restrictedaccesstoofficesandasts;periodicphysicalinventoryofastsandcashcounts;internaloperationalreportsthataretimely,easytounderstandandconci;accountingthatcomplieswithlocalaccountinglawandisconsistentfromoneperiodtothenext;quentialnumberingofdocuments;anadequateaudittrail;acuremanagementinformationsystem;andperiodicreconciliationoftalcontrolsshouldbesupportedbyaculturethatstronglydiscouragesfraudandmismanagement;documented,clearandconcipoliciesandprocedures;jobdescriptionsthatclearlyallocateresponsibilitiesandaccountabilities;transparentaccountingpracticesandanadequatemanagementinformationsystemthatprovidesaccurateandtimelyinformation;effectiveinternalsupervision,includingroutineauditsandspotchecks;andinternalauditfunctionsperformedbyaqualifiedindividual(s):CGAPInvestmentFund::CalmeadowIslamicCommunities:CommunitiesoftheMuslimfaith(politicaland/orcultural)thatpracticeIslamicmicrofinancemethodologiesregardingentitlementconsiderations(aka,muradaba):CalmeadowLLendingRate:LendingRateisthebankratethatusteisnormallydifferentiate:TheMIXMarketLeverage:ocialinvestmentworld,oftenreferstofinancialparticipationbyotherprivate,:RenzandMassarskyLiabilities,TotalLiabilities:Totalvalueoffinancialclaimsonafirm':RenzandMassarskyLimitedLiability:Limitationofshareholders':RenzandMassarskyLimitedRecour::RenzandMassarskyLineofCredit:Agree:RenzandMassarskyLinkedDeposit:Adepositinanaccountwithafinancialinstitutiontoinducethatinstitution'uingnointerestorlowinterestonitsdeposit,afoun:RenzandMassarskyLiquidityManagement:Theprocessofeffectivelybalancingbetweentworequirements:1)satisfyingallcashoutflowrequestsandrerverequirementswithouthavingtollastsatalossorborrowatahighcost;and2)holdingenoughastsiialinstitutionsutoolssuchascashflowforecastingandratioanalyssoarrangereliableoptionsforobtainingliquidfundsquicklywhenneeded(alineofcredit

forexample)ioudtomonitorliquiditylevelsistheliquidityadequacyratio,whichmeasurestheabilityofthefinancialinstitution抯liquidcashrervetosatisfyclfinedas:(Shortterm-asts?short-termliabilities)/-terma-termlisdepositsaredefinedastotalmemberdeposits(alltypes).Undernormaloperatingconditions(notconsideringasonaldemands),theliquidityadequacyratioshouldbebetween10%and15%tomeetopeertechniquesareud,liquidityman:CGAPLiquidityRerveRequirements:Governmentregulationsmandatingthepercentageofdepositsthatafinancialinstitu,byimprovingthelikelihoodthatdepositorswillbeabletowithdrawtheirfundswhentheywantto,rerves,rervesoftenearnnoorlittleinterest,soifthererverateishigh,thefinancialinstitutionmustcompcountries,non-bankdeposittakinginstitutionsarerequiredtodepocas,thereturnsaredeterminedbythereinvestmentmarket,andarest:CGAPLiquidityRisk:Theriskthatafinancialinstitutionwillnothaveenoughliquidaststomeetthedemandforcashoutflows,includingsavingwithdrawals,loandisburments,fliquiditycanputaquickandfinalendtoafinancialinstitution抯effortstomobilizedeposits?and,intheworstca,tmobilizationrequiresclientstotrustthacialinstitutioninvestssignificanttimeandresourcesinstillingthistrustinclients,:CGAPLoanAgreement:Awrittencontractbetweenalenderandaborrowerthats:RenzandMassarskyLoanLossProvisionExpen:Anon-cashexpeneniscalculatedasap:TheMIXMarketLoanLossRate::ACCIONLoanLossRerveRatio(%):LoanLossRerve/:TheMIXMarketLoanLossRerve:inanceorganizationsoftenestablishaloanlossrerveequalto2-5%:ACCIONLoanLossRerve:Theportionofthegrossloanportfoliothathasbeenexpend(provisionedfor)emreprentsthecumulativevalueoftheloanlossprovisionexpen,:TheMIXMarketLoanProcedures:Lendingpoliciesandprocedures,includingclientlection,paperwork,:CalmeadowLoanProducts:Typesofloanswithparticulartsoftermsandconditions,thefieldof

microfinance,loanproductsincludefixed-astlending,:ACCIONLoansbelowUS$300(%):PercentageofthenumberofloansdisburdbelowUS$:TheMIXMarketLossRerves:Thatportionofafund'arningsorpermanentcapitaldesignatedbytheboardofdirectorsasarerveagainstpossibleloanlossand,assuch,llyacceptedaccountingprinciplesgoverningfor-profitandregulatedfinancialinstitutionsrequirethatloanlosxpenbedeductedasanannualexpenonanaccrualbasisa,noaccountingconventionhasbeenestablishedtogovhnicaltreatmentistoestablishtherervethroughperiodicchargesagainstearnings,andactualloss,whenandifincurred,ancesheetpurposaloanlossrerve(should)beshownasadeductionfromtheloanportfoliotosuggestth:RenzandMassarskyManagementofInformationSystems:Theorganizationofinstitutionalprocess(primarilycomputer-oriented).Source:CalmeadowMMarketRate:m-relatedinv:RenzandMassarskyMarketing:Communicationofproductsandrvicestoexternalclientpopulationthroughvariousmeans,iments,referrals,:CalmeadowMicrocredit:Apartofthefieldofmicrofinance,mic:ACCIONMicrocredit:Microcredreditcanbeoffered,oftenwithoutcollateral,ending,alsoknownassolidaritylending,isamechanismthatallowsanumberofindividualntivetorepayisbadonpeerpressure;ifonepersoninthegroupdefaults,duallending,incontrast,focusononeclient:InternationalYearofMicrocredit2005Microenterpri(andrelatedterms):Amicroenterpriisgenerallyasoleproprietorshipthathasfewerthanfiveemployees,hasnothadaccesstothecommercialbankingctor,andcaninitiallyutilizealoanofunder$15,themicroenterprishavefewerthanthreeemployees,enterpridevelopmentprogramisgenerallyrunbyanon-profitorganizationthatprovidesanycombinationofcredit,technicalassistance,trainingancroloanareunder$10,000,withanaverageloansizeof$5,mschargemarketratesofinterest,regenerallycuredbynon-traditionalcollateral,:VirtualLibraryonMicrocreditMicroenterpriDevelopment:Organizationsinthiscategoryaremostconcernedaayincludethenon-timberforestsubctor,craft/garmentsubctor,agricultural,smallindustryand

nterpri:nterpriisoftenthesolesouesofmicroenterprisincludesmallretailkiosks,wingworkshops,:ACCIONMicroenterpri:Impactofcredit/enterpriinterventionsonspecificmicroenterprisregardingproductivity,uoftechnology,sustainability,successrates,incomelevels,:CalmeadowMicroentrepreneur:Owner/:ACCIONMicroentrepreneurs:Microentrepreneursarenplmicroentrepreneuractivitiesincluderetailkiosks,wingworkshops,:InternationalYearofMicrocredit2005MicrofinanceInstitution(MFI):Afinancialinstitution-canbeanonprofitorganization,regulatedfinancialinstitutionorcommercialbank-:ACCIONMicrofinance:Bankingand/orfinancialrvicestargetedtolow-and-moderateincomebusinessorhouholds,:ACCIONMicrofinance:Microfinancereferstoloans,savings,insurance,trans:InternationalYearofMicrocredit2005Microfinance:Thepurpooftheorganizationsistheextensionofinanceincludestheprovisionofcredit,savingsandincreasinglyadditionalfinancialrvicessuchasforeignexchange,insuranceandmoneytransfers..Source:CalmeadowMicroinsurance:Adevelopingfieldofmicrofinancethatprovideshealthinsuranceandotherinsur:ACCIONMicroinsurance:Microinsuranceisasystembywhichpeople,toinsuranceenablentrepreneurstoconcentratemoreongrowingtheirbusinesswhilemitigatingotherrisksaffectingproperty,:InternationalYearofMicrocredit2005MicroloanFunds:Comm:CalmeadowMicroloan:Aloanimpartedbyamicrofinanceinstitutiontoamicroentrepreneur,tobeudinthedevelopmentoftheborrower'oansareudforworkingcapitalinthepurchaofrawmaterialsandgoodsforthemicroenterpri,ascapitalforconstruction,orinthepurchaoffixedaststhataidinproduction,:ACCIONMicrosavings:Microsavingsaredepositrvicesthatallowpeopletostoresmallamountsofmoneyforfutureu,saccountsallowhouholdstosavesmallamountsofmoneytomeetunexpe:InternationalYearofMicrocredit2005

MonitoringandReporting:Managementoftheorganization抯regeneralthan:CalmeadowNNegativeCovenants:Statementsofactionsoreventsoftheborrowermustpreventfromoccurringorexisting,forexample,additionalborrowingwithoutthelender':RenzandMassarskyNetAstValue(%3yearannualaverage):Percentage(average):TheMIXMarketNetAstValue(%increaonpreviousyears)::TheMIXMarketNetAstValue(%increasinceinception):Percentage(average):TheMIXMarketNetIncome(AfterTaxesandBeforeDonations):NetIncome(BeforeTaxesandDonations):TheMIXMarketNetIncome(AfterTaxesandDonations):NetIncome(AfterTaxesandBeforeDonations):TheMIXMarketNetIncome(BeforeTaxesandDonations):NetOperatingIncomeplusNetNon-operatingIncome,:TheMIXMarketNetLoanPortfolio::TheMIXMarketNetNon-operatingIncome::TheMIXMarketNetOperatingIncome:FinancialRevenue(Total)lessallexpensrelatedtotheMFI抯corefinancialrviceoperations,includingOperatingExpen,FinancialExpen,notincludeDonations,:TheMIXMarketNetprivatecapitalflows:edebtflowsincludecommercialbanklending,bonds,andotherprivatecredits;non-debtpri:TheMIXMarketNetWorkingCapital::RenzandMassarskyNetWorth(zations)::RenzandMassarskyNewprojectedMFInvestmentsnextyear(US$):Newfund'smoniestobeinvestedintheMicrofinancectoroverthenext12-monthperiod(excludingfundsalreadycommittedtospecificMFIs,butnotyetdisburd).Source:TheMIXMarketNGO:Anorganizaancialrvicesareusuallymorerestricted,:TheMIXMarketNon-BankFinancialInstitution:

AninstitutionthatprovidessimilarrvicestothoofaBank,aratelicenmaybeduetolowercapitalrequirements,tolimitationsonfinancialrviceofferings,countriesthis:TheMIXMarketNon-conventionalfinance:TheUnitedNationshasdefinednon-conventionalfinanceasanyfinancingapproachwhich,bymodifyingloanterms,guarantees,collateraland/oreligibilityrequirements,permitslow-incomehouholdstoqualifyforandaffordhousingloansforwhichtheywouldotherwibeineli(Habitat)hasaddedthat,inthiscontext,theterm"non-conventional"ishedinstitutions,suchasbuildingsocieties,savingsandloanassociationsandhousingbanks,utionswhicharenormallyorprimarilyassociatedwithhousingfinance,suchasCBFIs,alsohaveconventioalsobenotedthatwha:VirtualLibraryonMicrocreditNon-operatingExpen:Allexpensnotdirectlyrelatedtothecoremicrofinanceoperation,suchasthecostofprovidingbusinessdevelopmentrvicesortraining(unlesstheMFIincludestrainingasarequirementforreceivingloans).Source:TheMIXMarketNon-operatingRevenue:Allrevenuenotdirectlyrelatedtocoremicrofinanceoperations,suchasrevenuefrombusinessdevelopmentrvices,training,:TheMIXMarketNumberofActiveBorrowers:Thenumberofindividualwhocurrentlyhaveanoutstandingloanbalancewiththe:TheMIXMarketNumberofActiveClients:Numberofindividualswhoareactiveborrowersand/nwithmorethanjustonesuchaccount(oanandasavingsaccount):TheMIXMarketNumberofactiveMFInvestments:Numberofactivefinancialandtechnical(calassistance)transactions(includingloans&debtcurities,equity,grants,guaranteesandgrants):TheMIXMarketNumberofPersonnel:cludescontractemployeesoradvisorswhodedicatethemajorityoftheirtimetotheMFI,eveniftheyarenotontheMFI抯:TheMIXMarketNumberofVoluntarySavers:ThetotalnumberofindividualswhocurrentlyhavefundsondepositwithanMFI,mberappliesonlytodepositsthatareheldbytheMFI,nottothodepositsheldinotherinstitutionsbytheMFI抯:TheMIXMarketNumberofWomenBorrowers::TheMIXMarketOperatingExpen/LoanPortfolio(%):OperatingExpen/:TheMIXMarketOOperatingExpen:Expensrelatedtooperations,suchasallpersonnelexpens,rentandutilities,transportation,officesupplies,:TheMIXMarket

OperatingExpens/PeriodAverageFundAsts:FundOperatingExpens/((BeginningyearFundAsts+YearendFundAsts)/2).Source:TheMIXMarketOperationalSelf-Sufficiency(%):FinancialRevenue(Total)/(FinancialExpen+LoanLossProvisionExpen+OperatingExpen).Source:TheMIXMarketOperationalSelf-Sufficiency(OSS):Ameasureoffinancialefficiencyequaltototalopesultingfigureisgreaterthan100,theorganizaofinance,operationallysustainable:ACCIONOpportunityCost:Thepotentialbenefitthatisforegonefromnotfollowingthebest(financiallyoptimal):RenzandMassarskyOpportunityCosts:Inthecontextofmicrofinance,opportunitycostsincludethetimeoranything"forgone":ACCIONOtherRevenueRelatedtoFinancialServices:Revenuethatisgeneratedfromotherfinancialrvices,suchasfeesandcommissionsforemmayincluderevenueslinkedwithlendingsuchasmembershipfees,ATMcardfees,transferfees,:TheMIXMarketOutreach:Activeattempttofind/interactwithclientsinlectedpopulations,rmwilloftenrelatetoimpa:CalmeadowPPassbookAccounts:Demanddepositaccountsthatupassbooksratherthanchecks,:CGAPPeerLending:Peerlendingreliesonthepeerpressureofgroupmemberstoactasagua:CalmeadowPerformanceStandards:Normativelevelstforspecificperformancemeasurements,ieldofmicrofinance,thereareveralentitie:ACCIONPerformanceStandards:Organizationalperformanceindicators/:CalmeadowPeriodAverageAsts:(BeginningyearTotalAsts+YearendTotalAsts).Source:TheMIXMarketPeriodAverageEquity:(BeginningyearTotalEquity+YearendTotalEquity).Source:TheMIXMarketPeriodAverageGrossLoanPortfolio:(BeginningyearGrossLoanPortfolio+YearendGrossLoanPortfolio).Source:TheMIXMarketPeriodAveragePersonnel:

(BeginningyearPersonnel+YearendPersonnel).Source:TheMIXMarketPolicy,ision,Legislation:Thisinvolvesallmattersthatdealwithlegislation,regulation,ludepolicyissuesattheregionalandnationallevel(ingusury).:CalmeadowPopulationdensity(peoplepersqkm):Populatitionisbadonthedefactodefinitionofpopulation,whichcountsallresidentsregardlessoflegalstatusorcitizenship--exceptforrefugeesnotpermanentlyttledinthecountryofasylum,whoeaisacountry抯totalarea,excludingareaunderinlandwaterbodies,nationalclaimstocontinentalshelf,c:TheMIXMarketPopulationgrowth(annual%)::TheMIXMarketPopulation,total(millions):Totalpopulationbadonthedefactodefinitionofpopulation,whichcountsallresidentsregardlessoflegalstatusorcitizenship--exceptforrefugeesnotpermanentlyttledinthecountryofasylum,who:TheMIXMarketPortfolioatRisk>30daysRatio(%):PortfolioatRisk>30days/:TheMIXMarketPortfolioatRisk>30days:Thevalueofallloansoutstandicludestheentireunpaidprincipalbalance,includingboththepastdueandfutureinstallments,:TheMIXMarketPortfolioatRisk:Measurementofthetotaloutstandingbalanceofloanspastdue-igorousmannerofasssingportfolioqualitythanportfoliopastdue/:ACCIONPortfolioinvestment,bonds(PPG+PNG)(NFL,currentUS$):Portfolioinvestmentflows,bonds,arenetandincludeportfoliodebtflows::TheMIXMarketPortfolioinvestment,equity(DRS,currentUS$):Portfolioinvestmentflows,equity,arenetandincludenon-debt-creatingportfolioequityflows:thesumofcountryfunds,depositoryreceipts,:TheMIXMarketPortfolioPastDue/DelinquentPortfolio:Totalamountofloan:ACCIONPortfolio:Acombinationofastsheldforitsinvestmentbenefits,etmixisusual:RenzandMassarskyPostalOutlets::CalmeadowPost-Conflict/Disaster:Theresourcesdiscussmicrofinanceandreliefstrategiesinapost-war/post-naturaldisast:CalmeadowPovertygapat$1aday(%):Povertygapisthemeanshortfallfromthepovertyline(countingthenonpoorashavingzeroshortfall),tionbelow$1

adayisthepercentageofthepopulationlivingonlessthan$1.08adayat1993internationalprices(equivalentto$1in1985prices,adjustedforpurchasingpowerparity).Source:TheMIXMarketPovertyheadcount,rural(%ofpopulation):Ruralpovertyheadcountist:TheMIXMarketPovertyLending:Hy,thismethodattemptstoidentifythecausofpovertyandaddressthemwitharangeofstrategies,:CalmeadowPrincipal:Incommerciallaw,theprincipalistheamountthatisreceived,inthecaofaloan,:RenzandMassarskyPrivatecapitalflows,total(%ofGDP):edebtflowsincludecommercialbanklending,bonds,andotherprivatecredits;nondebtpri:TheMIXMarketProductsandServices:Thisincludespracticalmanualsandinstitutionalprofilesformanagement,:CalmeadowProfitMargin:NetOperatingIncome/FinancialRevenue(Total).Source:TheMIXMarketProgram-RelatedEnterpri:Abusinessorenterpridesignedtopromonprofits,productsandrvicesareusually,butnotexclusively,tiesc:RenzandMassarskyProgram-RelatedInvestment:Broad,functionaldefinition:Amethodofprovidingsupporttoanorganization,consistentwithprogramgoalsiontextofthisstudy,program-relatedinvestmentsincludeloans,loanguarantees,equityinvestments,astpurchasortheconversionofast(s)tocharitableu,linkeddeposits,and,insomecas,:RenzandMassarskyPromissoryNote:ncontractbetweenaborrowerandalenderthatissignedbytheborrowerandprovidevidenceoftheborrower':RenzandMassarskyR

Rating::CalmeadowRatioAnalysis:Financialratioanalysistoolthatexaminesorganizationalsustainability,:CalmeadowRealinterestrate(%):Realinterestrateisthele:TheMIXMarketReceivables:Accountsreceivable;anamountthatisowedthebusiness,us:RenzandMassarskyRecour:Referstotheright,inanagreement,ecourloanreferstotheredrec-recourloanlimitsthelender'srightstotheparticularastbeingfinance:RenzandMassarskyRecoverableGrants:erablegrantmayincludeanagreementtotreattheinvestmentasagrantiftheenterpriisnotsuccessful,:RenzandMassarskyRegulatedMicrofinancialInstitutions:RegulatedinstitutionsofferingmicrofinancialrvicessuchasBancoSol,Mibanco,GrameenBank,ctionwouldin:CalmeadowRegulationandSupervision:Thecreationandenforcementofatofrulesandstandardsforfinancialinstitutions,ulesareusuallytbyacountry'scentralbankorsuperintendencyofbanks,:ACCIONRegulation:redit-onlyinstitutionslendoutcapitalbelongingtootherinstitutions(cond-tierlenders),financialintermediaries,bydefinition,putthesavingsofindividualsandinstitutionsatrisk,sreason,governmentstendtofocustheireffortsonregulatingfinancialintermediariesthatmobilizedepositretwokindsofregulation:-prudentialregulation,thefinancialctorauthority(regulator)doesnotvouchfororassumeresponsibilityforthesoundnessofthe搑egulated?-prudentialregulatorytechniquesmayinclude:registrationandlegalcharteringoflicendentities;disclosureofownershiporcontrol;reportingorpublicationoffinancialstatements;normsforthecontentandprentationofsuchstatements;accountingandauditstandards;transparentdisclosureofinterestratestoconsumers;externalaudits;submissionofnamesofborrowersandstatusoftheirloanstoacentralcreditinformationbureau;ementofnon-prudentiatialregulationisgenerallytoutandenforcedbythefinancialctorregulator;itdefinesdetailedstandardsforfinancialstructure,accountingpolicies,andotherimportantdimensionsofafinancialinstitution抯tialregulationswillincluderequirementsforliquidity,capitaladequacy,loan-lossprovisioningandloandiversification,edtonon-prudentialregulations,enforcingprudentialregulationsrequiresmoreintensivereportingaswellason-siteiesupervisoryresourcesareoftenlimited,enforcingprudentialregulatio:CGAP

Remittance:ntincash,:ACCIONRemittances:Remittancesaretransfersoffundsfrompeopleinoneplacetopeopleinanother,edwithothersourcesofmoneythatcanfluctuatedependingonthepoliticaloreconomicclimate,:InternationalYearofMicrocredit2005Resource-DependentCommunities:Primaryresource-dependentcommunities,g,esourcesdiscussmicrofinanceasana:CalmeadowRestructure:Arevisionofafinancialagmple,partiesmayagreetorestructurealoanagreement,easingthepaymentschedule,:RenzandMassarskyReturnonAsts(%):(NetOperatingIncome,lessTaxes)/:TheMIXMarketReturnonEquity(%):(NetOperatingIncome,lessTaxes)/:TheMIXMarketRiskManagement:Asystematicapproachtoidentifying,measuring,iveriskmanagementincludesthefollowingsteps:1)Identify,asssandprioritizerisks;2)Developstrategiestomeasurerisk;3)Designpoliciesandprocedurestomitigaterisksbadcost/benefitanalysofdifferentmeasures;4)Implementandassignresponsibilityforpoliciesandprocedures;5)Testtheireffectivenessandevaluatetheresults;and6)rationalrisksthatfinancialinstitutionsmustmanageincludecreditrisk,liquidityrisk,interestraterisk,reputationrisk,transactionrisk(theriskoffinanciallossduetonegligence,mismanagementorerrors),:CGAPRollOver:Priortooratthetimeofthematurityofaninvestmentorloan,theinterestedpartiesagreetocontinuetocarryovertheinvestmentorloanforanother,:RenzandMassarskyRotatingSavingsandCreditAssociations(ROSCAs):Informalsavingsandcreditgroupsinwhicheachmemberdepositsthesameamountofmoneyatthesameregularinterval;eachtimemembersdeposit,erehavebeenasmanydistributionsastherearemembers,nehasputinandtakenoutthesameamount;forexample,tenpeopleeachsave$10aweek,andeachweekfortenweeksonepersonwalksawaywith$:CGAPRuralBank:Bankinginstitutionthattargetsclientswholiveandworkinnon-urban:TheMIXMarketSaversperStaffMember:NumberofVoluntarySavers/:TheMIXMarketS

Savings/RegularSavingsAccounts:Demanddepositaccountsthatupassbooks,magneticstripeorsmartcards,ATMs,:CGAPSavings/Self-HelpGroups:Foundeverywhere,butespeciallyinSouthAsia,savingsgroupsprovidetheirmembedofaboutfivetotwentymembers,eachgroupmeetsmonthlyorweeklyclotomembers?upsthenlendthesavingstomembers,storetheminalockbox,ergencystrikes,membersoftencanaccessaloanquicklyfromtheirgroup抯sgroupsprovidelimitedbuthighlyconvenientrvicestolargenumbersofsmall,heirsimplicity,theycanbepromotedbynon-governmentalorganizations(NGOs)sdonotusuallyrecoverthecostsofpromotingthegroups;however,:CGAPSavingsBanks:orldwide,someofsavingsbanksarepublic,someareprivate,epostalsavingsbanksthatoffertheirrvicesthroughtheircountries?sbanksoftenhavefargreaterruraloutreachthanotherbanknetworksandtendtoofferproductswittglobalstudyestimatedthat揳lternativefinancialinstitutions?-institutionsthatreachlower-incomeclientsthanthogenerallyrvedbycommercialbanks?savingsbanksaloneholdnearlyfour-fifthsoftheaccountsandnon-postalsavingsbanks,whichwerenotincludedintheglobalfigure,:CGAPSavingsDevelopment:Creationandprocessofclientsavingsschemes(includingmandatorysavingsschemes).Source:CalmeadowSavingsMobilization:Programsintendingtomobilizethecapitalofthepoorandtoprovidesavingsaccounts,aswellascreditrvices,:ACCIONSecuritization:Theprocessofpoolingagroupofasts,suchasloansormortgages,tizationisonewaymicrofinanceinstitutionscanaccesscapitalmarkets,improveliquidityandlendmoremoney,:ACCIONSecurity:Apledgemadeesofcuritiesincluderealestate,gesareaformofcuritywithstronglegalstanding,agegivesthelenderholdingamortgagecuritytherighttoreclaimtheastbeingfinanced,:RenzandMassarskySelf-HelpGroups:Theareorganizationsthatareudasafoundationtoformalizecreditandsavingsoperationssuchastrustbanksand/:CalmeadowSelf-sufficiency:Self-sufficiencyoccurswhenamicrocreditprogrammecancoverallofitsoperatingexpens(includingloanlossandthecostofcapital):VirtualLibraryonMicrocreditSeniorDebt:Debtthatmustbere:RenzandMassarskySmall&MediumScaleEnterpris(SMEs):Enterprimploying5to10workers(small-scale)orbetween10and50workers(medium-scale).Source:ACCIONSoftwarePrograms:

Microeconomic/microenterpri/microcredit-specificcomputersoftwareprograms(mostlyfinancial,programplanningandaccounting-bad).Source:CalmeadowSteppedLending:Theprocessbywhichbodlendingkeepsinitialriskataminimumwhileallowin:ACCIONStreetVendors:Thistermfocusonlf-employedstreetvendorssuchascart/sidewalkhawkers,:CalmeadowSubordinatedDebt(JuniorDebt):ventofbankruptcy,suborddinationofcurityinterestinpropertyallowsanothercreditortohavetherightstotheproceed:RenzandMassarskySubsidizedRatesofInterest:Loaninterestratesthatarekeptartificiallylow(belowmarketrates)bythelendinginstitution;:ACCIONSupervision:Systematicoversightofdeposit-takingfinancialrviceproviderstomakesurethattheycomplywiththeregulationsgoverningthem,isionplaysacrucilly,regulatoryagencieshaveverylimitedresourcesyetareresponsibleforassuringthestabilityofthecountry抯ult,policymakersmustbalancesystemicriskandthtofprudentialntsachallenge:howtoeffectivelysupervithemicrofinancectortoprotectthesavingsofsmalldepositorswithoutplacingexcesscas,policymakersprioritizetheregulationoffinancialinstitutionsthatholdlargevolumesofdepositsand/:CGAPSustainability:Anorganization'revaryingdegreesofsustainability,rangingfromnotsustainabletofinanciallysustainableSource:ACCIONSustainability:Organizationalfinancialandoperationallf-sustainabilitymeaningtheabilitytocovercostsplustheimputedcostofcapitalandotherexpens;:CalmeadowSustainability:Sustainabilityistheabilityofamicrocreditprogrammetomaintainammeissustainablewhenacombinationofexternalgrants,loans,andinternallygenerated:VirtualLibraryonMicrocreditTTaxes:Includesalltaxespaidoudestaxesrelatedtoemploymentofpersonnel,financialtransactions,:TheMIXMarketTechnicalAssistance:Exchangeofknowledge,productandrvicesandmanagementtechnolo:Calmeadow

Term/TimeDeposit/Certificate/FixedDeposit:Asavingsproductinwhichaclientmappointedtime,ancialinstitutionoffersarangeofpossibletermsandusuallypayetheytendtobelargerthanothertypesofdeposits,havecontractedwithdrawaltimes,andinvolvefewertransactions,timedepositscanprovp:CGAPTerm:Referstothematurityorlengthoftimeuntilfinalrepaymentonaloan,bond,:RenzandMassarskyTotalAsts::TheMIXMarketTotalEquity:Totalofallequityaccounts,:TheMIXMarketTotalLiabilitiesandEquity::TheMIXMarketTotalLiabilities::TheMIXMarketTraditionalFinanceSchemes:Pawnbrokers,rotatingsavingsandcreditassociations,individualsavingsgroups,:CalmeadowTraining:Stafftrainingregardingmicrocreditmethodologies,camanagement,eniorstaff,esnotinclude:CalmeadowTransactionCosts:Imputedcostsfromorganizationaloperationsandactivitiesinrelationtoclientrvicesandotherorganizationalinteractions(singfees).Source:CalmeadowTransformation:Upscalingtonon-bankfinancialintermediaryorcommercialbank,:CalmeadowTransformation:Inamicrofinancecontext,transformationreferstotheprocessbywhichanonprofitco:ACCIONTransparency:Thedegreeofafinancialinstitution/MFI'sopennessasparentmicrofinanceorganizationgathersandreportsaccuratefinancialinformationonitsown,xternalauthoritiensurethattheMFI':ACCIONTypeofInstitution(MFI):MFIscanbeBank;Cooperative/CreditUnion;Non-BankFinancialInstitution;Non-Profit(NGO);RuralBank;:TheMIXMarketUnbanked:Unbankeddescribespeoplewhohavenoaccesstofinancialrvices(rvicesthatincludesavings,credit,moneytransfer,insurance,orpensions)throughanytypeoffinancialctororganizationsuchasbanks,non-bankfinancialinstitutions,financialcooperativesandcreditunions,financecompanies,itinthisdefinitionisthatfinancialrvicesareusuallyavailableonlytothoindividualstermed揺conomicallyactive?or揵ankable?Source:InternationalYearofMicrocredit2005

UUr:Anon-orfor-profitentitythatreceivesaprogram-re:RenzandMassarskyVVillagebanking:Lendingmethodologyinwhichclients-typicallywomen-formgroupsofapproximately10-30individualsthatareautonomouslyresponsibleforleadership,bylaws,bookkeeping,uppoolsfundstouforbusinessloans,savings,andmutualsupport,:ACCIONVillageBanking:ThisisatypeoflendingfoundedbyJohnHatcllagebankingprogramsfocusonminimalistandotherucredit憄lus?schemes(withEducation)?:CalmeadowVoluntarySavings:Depositsfromthegeneralpublicandmembersthatarenotmaintainedasacondit:TheMIXMarketWWarranties:tance,theborrowermaywarrantthatitisacorporation,thatitinteringintotheagr:RenzandMassarskyWillingnesstoPay:umerdemandtheory,emporarysocialsciencewriting,"abilitytopay"licitassumptionhereisthateventhoughpeoplearewillingandactuallydopayacertainamount,,water)resultsinalossofconsumptionofsomeothergoodorrviceandplacesthepurch:VirtualLibraryonMicrocreditWomenBorrowers(%):NumberofFemaleBorrowers/:TheMIXMarketWorkers'remittances,net(BoP,currentUS$):TheWorldBankadherestointernationalguidelinesindefiningGNI,anditsclassificationofworkers':TheMIXMarketWorkers'remittances,receipt(BoP,currentUS$):Workers'remittancesarecurrenttransfersbymigrantswhoareemployedorintendtoremainemployedfovelopingcountriesclassifyworkers'remittancesasafactorincomereceipt(andthusasacomponentofGNI[grossnationalincome梖ormerlygrossnationalproduct,orGNP]).TheWorldBankadherestointernationalguidelinesindefiningGNI,anditsclassificationofworkers':TheMIXMarketWorkingCapital:

Definedasthedifferencebetweencurrentastsandcurrentliabilities,:ACCIONWorkingCapital:Technically,moftenalsoisudtorefertoallshort-termfundingneedsforoperations(excludingdebtrviceandfixedasts).Acompany'sinvestmkingcapital,whichistheexcessofcurrentasflecttheresour:RenzandMassarskyWriteOffRatio(%):WriteOffsforthe12-monthperiod/:TheMIXMarketWriteoff:Whenaninvestment,suchasaloan,becomesriouslydelinquentorindefaultandisdeterminedtobeuncollectible,thelenderma:RenzandMassarskyWriteOffsforthe12-monthperiod:-offisanaccountingprocedurethatremovestheoutstandingbalanceoftheloanfromtheGrossLoanPortfolioandf:TheMIXMarketWrite-off:financeinstitutionwritesoffloansnotexpectingtocollectthem,:ACCION