Mapping of Microfinance Institutions

1. Mapping of Microfinance Institutions Microfinance Summit Nepal 2008 Dr Pitamber Rawal Chhetri Feb 16 2008

2. Mapping Exercise • Mapping of the existing microfinance sector in Nepal, along with geographical and outreach overview. • The results of the mapping exercise can be used by policy makers, regulators, practitioners and other stakeholders of micro-finance.

3. Objective • To identify various types and level of institutions involved in microfinance activities • To identify and locate microfinanceinstitutional presence throughout the country • To provide overview on the microfinance institutions and their outreach

4. Data Collection and Verification • Development of sample frame for microfinance institutions in close consultation and information from The World Bank, NRB and Dept. of Cooperatives, others • Verification and adjustments to the sample frame at the field (district) level; CDO office, Cooperative Divisions • Field deployment in 3 phases: starting from concentrated districts to lesser concentrated districts • Structured Questionnaire Form was used to collect data

5. Sample Frame • Microfinance Development Banks; • Source: NRB • Regional Rural Development Banks; • Source: NRB • Financial Cooperatives; includes all cooperatives carrying out micro-finance activities (both saving and credit activities) • Department of Cooperatives, Division Offices, NRB, GTZ, field level references • Financial Intermediaries NGOs (FI-NGOs); includes NGOs who themselves carry out micro-finance activities, not just as project initiative. • NRB, Field level references • Does not include, self-help groups or any other project-based groups

6. Mapping Information Collected • Location coordinates • Contact Information • Registration/ Renewal Status • Employee Status • Membership status • Governance: AGM, Board meeting status • Key Financials Data • Deposit/ Loan Status • Interest Rates

7. Difficulties in Data Collection LOCATING/ IDENTIFYING INSTITUTIONS • Many institutions in the original sample frame are either have closed down (primarily cooperatives) or have stopped doing micro-finance activities. • Many cooperatives other than S&C cooperatives, Small Farmers, primarily multi-purpose, are carrying out microfinance activities. • Small institutions do not have permanent office space or location, difficulty in accessing relevant personnel. • Difficulties associated with local ground situation, accessibility to the locations.

8. Difficulties in Data Collection contd.. CURRENCY/ QUALITY OF DATA • Institutions not willing to share information, non-cooperation • Financial and operational data are not organized or updated to collect relevant information • Institutions also carry out other activities beyond micro-finance, all are not able to separate the financials specific to micro-finance only • Audited financial statements not well organized, contains flaws, are not standardized

9. Current Project Status • Field Start: Mid December • Field Status as of Jan 2007 • Completed Districts: 25 districts (Phase 1) • Current Field Districts: 35 districts (Phase 2) • Remaining Districts: 15 districts (either very less numbers in sample frame or difficulty in accessibility

10. Preliminary Trends

11. Membership/ Clients

12. Equity

13. Outstanding Loans

14. Savings

15. thank you