1 / 10

How is the global crisis affecting MFIs and their clients?

How is the global crisis affecting MFIs and their clients? Preliminary results CGAP Global Opinion Survey. April 2009. A year-long crisis? Food, Financial & Economic shocks. August 2008, CGAP Food crisis survey: Operational costs and PAR increasing Clients’ food consumption down

ernst
Télécharger la présentation

How is the global crisis affecting MFIs and their clients?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. How is the global crisis affecting MFIs and their clients? Preliminary results CGAP Global Opinion Survey April 2009

  2. A year-long crisis? Food, Financial & Economic shocks August 2008, CGAP Food crisis survey: • Operational costs and PAR increasing • Clients’ food consumption down November 2008, CGAP virtual conference on Financial Crisis impact: • Global liquidity contraction • Foreign exchange risk Q1 2009: • Crisis acceleration + rapid propagation to emerging/developing econ. • 2009 GDP growth forecast for developing countries 2.1% in 2009 (5.8% in 2008) - 31 March World Bank data. Question: How is the global crisis impacting MFIs and MFI clients?

  3. Measuring MFIs’ managers opinion: How much are your clients affected by the global crisis?

  4. MFI clients subject to triple shock Food & Fuel – Financial crisis – Economic slowdown INCOME • Remittances • Loans • Profit margins from micro business • Savings EXPENDITURE • % income in food • % income in repayment • % income on work inputs Are MFI clients more or less resilient to this crisis than poor at large? (we don’t know - yet)

  5. Clients impacted differently… 59% respondents: repayment is down ECA: 75% MENA: 41% Repayment is down in all regions MFI clients spending a higher share of income on food, specially in SA and SSA (55% of respondents). Food higher priority for NGO clients Greater % of income on food 57 % respondents: their clients are saving less, especially in SSA, SA and EAP MFI clients appear to be saving less

  6. Overview of impact on MFIs, by tier Portfolio down or same, % of respondents Av. loan size down or same, % of respondents Portfolio-at-Risk up, % of respondents Loan portfolio is stable or decreasing for 64% of MFIs Portfolio-at-Risk is increasing for 69 % of MFI managers

  7. EAP ECA LAC MENA SA SSA Down Same Up Graphs by region Credit risk is up: regional differences Portfolio at Risk (PAR), % of respondents Credit Risk is up worldwide ECA more affected: 88% of MFIs report rise in PAR MENA and EAP less affected: 62%/ 58% of MFIs report rise in PAR

  8. Increasing liquidity concerns, especially for smaller Tier 3 MFIs Liquidity constraints now Liquidity constraints later 52% of MFIs report liquidity constraints now 66% face constraints for next 6 months Tier 3/smaller MFIs more exposed

  9. Savings-based institutions: mixed message  Most savings-based MFIs not facing liquidity constraints 56% vs. 43% for non-savings  Higher levels of PAR increases 76% savings-based vs. 66% for non-savings

  10. Outlook according to MFI managers • Liquidity problems increasing- 66% of MFI managers expect increased liquidity pressures (75% for Tier 3 MFIs) • PAR improvements - 36% of managers say that their PAR will improve (more pessimistic views in ECA and LAC) • Stable outlook - 77% of managers think their financial performance will remain stable or improve

More Related