Policymakers and regulators play an important role in facilitating pricing disclosure in the microfinance market. MFTransparency collaborates with these stakeholder groups in every country where we work, supporting their process for implementing a policy framework that promotes transparent pricing practices.
Below you’ll find a list of resources related to policy for pricing disclosure. Look through our compilation of case studies, articles, tools and blog posts. All resources have been coded according to their complexity:
- a green box indicates basic information,
- a yellow box will provide you with a resource that goes beyond the basics, and
- a red box is a comprehensive or advanced article on interest rates.
Use these links to jump directly to what you’re looking for, or simply scroll down to view our full library:
Articles
We frequently hear about “flat” and “declining balance” interest rates, but what exactly is the difference between the two? How do they relate to transparency? This article will explain the concept of interest, the different methods used to calculate it and some industry standards for disclosure. Download
In 2001, the National Bank of Cambodia banned the use of flat Interest.
This article reviews the background and presents the legislation.
English | French | Portuguese
Case Studies
The Reserve Bank of Malawi (RBM) is leading an effort to require pricing disclosure for all microfinance institutions (MFIs) in Malawi. MFTransparency interviewed Lanjes Sinoya, Principal Examiner at the Reserve Bank of Malawi, about the pricing disclosure and client protection aspects of the bill. Download
As a result of the implementation of the National Bank of Cambodia‘s Prakas on the Calculation of Interest Rate on Microfinance Loans (2001), all MFIs in Cambodia charge interest on the declining balance of the loan amount. This case study discusses the impact of this approach on pricing transparency in the Cambodian microfinance market. Download
The Bosnian microfinance industry is governed by a policy that specifies calculation and disclosure requirements for effective interest rates on loans and requires that microfinance institutions (MFIs) deliver clear, communicative repayment schedules to their clients. This case study assesses the effectiveness of these regulations in impacting MFI practices. Download
Tools
Policy MatrixThe Policy Matrix is a list of policies that MFTransparency believes can be implemented to help create an enabling environment for pricing transparency in microfinance, as well as examples of countries where each policy is currently in place.
English | French | Portuguese
Model Repayment ScheduleA crucial element of pricing disclosure is the loan documentation given to clients. This tool displays a model template as well as two examples for how it can be completed. To learn more about the two installment types presented, and for a version of this template that can be completed and used for any loan product, please see the Calculating Transparent Prices Tool. English | French | Portuguese
From the Blog
Read about the recent event MFTransparency hosted in Nairobi for the leaders of microfinance markets in 24 African countries. This event, the first of its kind, was hosted with the support of steering committee members from AFD, CGAP, UNCDF and AFMIN. To download the presentations made at this event click here.
Read this post
Policymakers in Colombia have been moving toward a transparency-based approach to pricing for microfinance, reducing their traditional reliance on interest rate caps. We at MFTransparency urge the government to focus on straightforward regulation to ensure that financial service providers apply the law in a clear and consistent manner. Read this post
“MFTransparency’s Transparent Pricing Initiative comes at the right time.” That’s the sentence we have heard most frequently during our meetings with MFIs, networks and especially regulators. Read this post
Suggestions
If you have suggestions for additional information to post on this page, write to us at resources@mftransparency.org.
Last 3 posts by Jordan Filko
- Resources Library - December 6th, 2011
- New MFTransparency Case Study: Outlawing Flat Interest in Cambodia - November 17th, 2011
- New Interview with an Industry Leader – Now Live - November 10th, 2011
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