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Suggestions for Designing a Micro Credit Model
2011, Graziosi, A.
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Designing a new microcredit model based on classification of MFIs

This paper presents suggestions for designing a new microcredit model in the context of recent crises in the microfinance industry. It recommends using the Basel III core principles as a framework for designing the new model.

The paper states that microfinance crises are often the result of difficulties in balancing social and commercial objectives in a risky market.. It discusses the classification of financial institutions in Base III principles and examines how social performance indicators can be included in assessment of different categories of MFIs.

The paper concludes by pointing out the advantages of the new microcredit model based on classification of MFIs. These include:

Increased transparency in the microfinance industry;
Homogenization of a heterogeneous group of financial and non financial service providers;
Niches for every type of financial institution and availability of financial services for every segment of population.

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29 Jul 2011


Parameter for evaluation. Performance of an mfi should be measured in light with its objective. For considering social issue, if basic rule of finance is ignored, it will create complexity in the long run.

Md Ibrahim Kabir Bangladesh

23 Jun 2011


Ascanio, thank you for such an interesting analysis. I am concerned about how can we reach a specific regulation for microfinance, despite the lack of political will of some governments. Something between prudential regulation and a best practices compilation. In your opinion, could Basel III fulfill that need?

Maria Jesus Mari\u00F1o Spain

15 Jun 2011


Suggestion for designing a micro model.

stella mensah G-life Ghana

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