Transitions to Private Capital: Case Studies from the Liability Side of the Balance Sheet

This report presents three case studies that examine financing of MFIs and their transitions to private capital. The case studies are short histories focusing on the funding strategies of three MFIs: Compartamos in Mexico, Mibanco and EDYFICAR in Peru. The note states that although each case study shows MFIs evolution and strategic thinking behind funding and capital management, they are different in structure and content due to the differences in their experiences. Mibanco and Compartamos offer the most complex histories, involving savings, bonds and other financing vehicles in explicit and long-established funding strategies. EDYFICAR, in contrast, is a larger MFI with significant funding needs, but without access to savings, due to its institutional form and registration.