Central Asia Benchmarking Report, 2006

This report tracks gaps between leading financial institutions and small MFIs in the shifting microfinance landscape of Central Asia. It examines donor resources, external investments and performance of MFIs. The study draws upon data from Central Asia Microfinance Center, MIX Market and MIX MicroBanking Bulletin. The report presents the following findings about microfinance providers in Central Asia, which include downscaling banks, specialized banks, credit unions, non-bank financial institutions and NGO providers:

• Central Asian MFIs have the potential to transform the financial sectors of their countries;
• MFI sector has grown rapidly, with most institutions becoming sustainable;
• Most of the growth in Central Asia has come from sole purpose microfinance providers;
• Credit unions and downscaling banks have seen much slower growth;
• External actors have almost doubled their level of investments between 2005 and 2006.

The paper concludes with questions about the role of commercial banks in the future growth of the sector.