Financial performance is one of the indicators used to measure the success of a microfinance institution (MFI) in terms of its financial returns. It is often considered a yardstick used by investors to conduct due diligence and assess the status of an investment; it is also used as a tool by government supervisors to assess compliance with regulatory measures and monitor the overall health of the financial sector. Each country issues its own accounting standards and reporting format for its constituents; however, several common financial performance indicators are used by most MFIs.
Sound finances and good returns are important indicators of success; however, social performance is another increasingly important benchmark used to assess many institutions. Institutions with a “double bottom line” approach measure both their financial and social performances to ensure that they not only make a profit but that they also positively impact the lives of their clients.
What can you find in this Topic Hub?
Curated by FinDev editors, this Topic Hub offers you access to key resources contributed by organizations around the world who work on the topic of financial performance. Our latest blogs and publications on this topic are featured here (in the Resources Tab above), and you can find a collection of papers, case studies and guides to explore further. When there are upcoming webinars, events and recent news on this topic, they will be featured in the Topic Hub as well, so make sure to come back regularly for the latest on this topic. Finally, we’ve selected some key additional resources, which are listed on the right here, where you can learn even more about this topic.
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