http://www.mftransparency.org/pages/2009/11/01/bosnia-discussion/ Promoting Transparent Pricing in the Microfinance Industry Wed, 21 Dec 2011 23:08:25 +0000 hourly 1 http://wordpress.org/?v=3.0.4 http://www.mftransparency.org/pages/2009/11/01/bosnia-discussion/comment-page-1/#comment-30 Larry_at_mft Mon, 16 Nov 2009 21:27:44 +0000 http://www.mftransparency.org/pages/?p=991#comment-30 Good question, Kevin. It is interesting that all the green dots (For-Profit MFIs) are below the average price curve. It turns out that these are all from the same institution, Mikrofin, as it is the only for-profit MFI member of AMFI (the Association of Microfinance Instiutions in Bosnia and Herzegovina). So it is hard to draw a lot of conclusions out of one organization. It is interesting to note that Mikrofin makes a significant proportion of its loans in rural areas (ranging from 45% to 70% depending on the product) so the answer to their lower prices is not because they only work in urban areas. n nThis will be something to watch for in other countries as we post their data. In Cambodia all the MFIs are for-profits because of local registration requirements, so no comparison there. But watch as we post data from other countries to see where the for-profit institutions line up against the price curve. It may lead to more interesting discussions. Good question, Kevin. It is interesting that all the green dots (For-Profit MFIs) are below the average price curve. It turns out that these are all from the same institution, Mikrofin, as it is the only for-profit MFI member of AMFI (the Association of Microfinance Instiutions in Bosnia and Herzegovina). So it is hard to draw a lot of conclusions out of one organization. It is interesting to note that Mikrofin makes a significant proportion of its loans in rural areas (ranging from 45% to 70% depending on the product) so the answer to their lower prices is not because they only work in urban areas. n nThis will be something to watch for in other countries as we post their data. In Cambodia all the MFIs are for-profits because of local registration requirements, so no comparison there. But watch as we post data from other countries to see where the for-profit institutions line up against the price curve. It may lead to more interesting discussions.

]]> http://www.mftransparency.org/pages/2009/11/01/bosnia-discussion/comment-page-1/#comment-29 kevinfryatt Mon, 16 Nov 2009 20:23:18 +0000 http://www.mftransparency.org/pages/?p=991#comment-29 What I find interesting is that loan prices of 'For-Profit' MFI are actually all located under the average price curve. What would explain this? Does this have something to do with the local environment in which they operate (ie. intense competition amongst the for-profit institutions, government pricing regulations, etc.)? n nWhat do you think the reaction of these for-profit MFIs will be knowing that they are currently pricing below the 'market average'? What I find interesting is that loan prices of 'For-Profit' MFI are actually all located under the average price curve. What would explain this? Does this have something to do with the local environment in which they operate (ie. intense competition amongst the for-profit institutions, government pricing regulations, etc.)? n nWhat do you think the reaction of these for-profit MFIs will be knowing that they are currently pricing below the 'market average'?

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