Asia 2009: Microfinance Analysis and Benchmarking Report

This report examines indicators that point to the potential effects of the global financial crisis on MFIs in Asia.

The report covers benchmarks and regional trends for Asia, specifically focusing on risk factors. It states that:

• MFI operational indicators remained stable through 2008, and growth and outreach figures show little effect of the crisis;
• Growth continued in most of Asia in 2008, although East Asia began to show more rapid growth than South Asia, where growth decelerated;
• Indicators of credit, financing, and currency risk show several areas of potential concern;
• Customers and investors financed more MFIs than ever before;
• Overall credit risk indicators dropped in 2008 throughout Asia;
• Many institutions moved from low to moderate delinquency levels, indicating potential problems in the future; Operating costs and other costs remained low, but stable;
• Most countries saw rising financial expenses, and South Asia saw rising personnel expenses, due to increased competition for skilled staff;
• Rising portfolio risk levels and tightening cost structures indicate future risks.

Finally, increasing transparency and improved financial reporting throughout Asia continue to facilitate more sophisticated regional and institutional analysis.