Worldwide Distribution and Performance of Microfinance Institutions

This brief summarizes the results of a survey that sought to answer the following questions:

• How many microfinance institutions (MFIs) exist in the developing world?
• How well are they performing?
• What is their role in household economies?
• Are they using their funds efficiently?

The survey:

• Used information from MFIs in Asia, Africa and Latin America;
• Adopted an average loan size of US $1,000 as the ceiling in defining MFIs;
• Reviewed publications on microfinance;
• Looked at MFIs that have some kind of international support.

The survey finds:

• 1,478 MFIs that reach 54 million members, 44 million savers and around 23 million borrowers;
• A total savings volume of US $12 billion and a total outstanding loan volume of US $18 billion;
• A range of microfinance models in use;
• Evidence that a minimum of political and economic stability is necessary for MFIs to develop;
• Diversity of technology and legal status amongst MFIs.

The survey also presents findings regarding:

• MFI activity in terms of volume;
• The number of MFIs and their clients;
• Volume of savings and loan distribution and repayment.

The paper concludes that although there are a multitude of MFIs that offer financial services to 54 million households, increasing the size and productivity of each institution could result in better outreach.