Occasional Paper No. 4: Institutional Metamorphosis: Transformation of Microfinance NGOs into Regulated Financial Institutions
By Anita Campion, Victoria White - Published: 1999
The drive towards financial self-sufficiency, along with fewer donor funds, has led microfinance practitioners to consider commercialization. This document illustrates the range of commercialization models and highlights the common issues specific to the transformation process. It addresses the regulatory, financial and operational issues involved in the process and highlights the general costs, benefits and key issues in creating a formal financial institution. Part I identifies the key challenges faced by transforming microfinance NGOs; Part II presents three transformation case studies: CARD Bank (Philippines); K-REP (Kenya); and Mibanco (Peru).
