Does efficiency guarantee self-
sustainability?
When analyzing the data learned that
efficiency does not necessarily translate
into profitability, but also that successfully
reaching the poorest should not be used as
an excuse for inefficiency. Inefficiency
limits the scale of assistance and the
quality of services, generating lost
opportunities.
Efficiency is a necessary but not sufficient
condition for a complete financial self-
sufficiency, there is also room for public
policies.
EDGARDO MARCELO
VILLANUEVA SOGAMOSO
What do microfinance institutions have
in common?
There is a line that unites these
organizations: the importance of efficiency,
that is, the ability to use scarce resources in
order to respond to thousands of customers
in the most effective way, offer quality
services and bridge the gaps between supply
and the demand for basic financial products
for the poor.
Is There a formula for efficiency?
The second factor in operating expenses is
personnel costs. They vary greatly
between countries as a result of the
shortage of qualified loan officers. Even
the third determinant of operating
expenses is sometimes difficult to manage.
A DE LAS
IMPORTANCI
ZAS
MICROFINAN
Microfinance is importan because are
Efficiency in microfinance can be measured
by different indices: the most used one
establishes a relationship between operating
expenses and the loan portfolio, other results
a relationship between operating costs and
the number of borrowers, or the number of
clients with the number of borrowers. credit
officers.
Every year around 4,000 million dollars are
invested in microfinance in the world; in this
sense, microfinance institutions must follow
very consistent business models in order to
survive.
A new study published by the International
Labor Organization (ILO) offers guidance to
business designers and implementers on how