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MFI Capital Structure Decision Making : A Call for Greater Awareness

Microfinance institutions (MFIs) today have an increasingly broad range of financing sources at their disposal. This allows for greater funding diversification, but it also makes decisions about capital structure more complex. Several high-profile...

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Bibliographic Details
Main Authors: Deshpande, Rani, Nestor, Camilla, Abrams, Julie
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ALTERNATIVE FUNDING
BALANCE SHEETS
BANKS
BOND
BOND ISSUES
BONDS
BORROWING
CAPITAL BASE
CAPITAL MARKETS
CAPITAL STRUCTURE
CHEAP LOANS
COLLATERAL
COLLATERAL REQUIREMENTS
COMMERCIAL BANKS
COMMON SHARES
COST OF DEBT
COST OF EQUITY
CROSS-BORDER PAYMENTS
CURRENCY
CURRENCY DEPRECIATION
CURRENCY RISK
DEBT
DEBT FINANCING
DEBT INSTRUMENTS
DEPOSIT
DEPOSIT MOBILIZATION
DEPOSIT SERVICES
DEPOSITS
DIFFERENT CURRENCIES
DIVERSIFICATION
DIVIDENDS
DOMESTIC BANKS
DOMESTIC DEBT
DOMESTIC EQUITY
DOMESTIC MARKETS
EQUITY INVESTORS
EQUITY PRODUCTS
EQUITY RATIOS
EXPOSURE
EXTERNAL BORROWING
FINANCIAL ANALYSIS
FINANCIAL INSTITUTIONS
FINANCIAL MARKET
FINANCIAL MARKET DEVELOPMENT
FINANCIAL SERVICE
FINANCIAL SERVICES
FINANCIAL SYSTEMS
FIXED ASSETS
FOREIGN DEBT
FOREIGN EQUITY
FOREIGN EXCHANGE
FOREIGN EXCHANGE RISK
FOREIGN LENDERS
FORMS OF DEBT
FUNDING SOURCE
FUNDING SOURCES
GUARANTEE FEES
HARD CURRENCY
INFLATION
INITIAL PUBLIC OFFERING
INTEREST RATE
INTEREST RATES
INVESTING
INVESTMENT DECISIONS
INVESTMENT FUNDS
LENDERS
LEVERAGE
LOCAL BANK
LOCAL BANKS
LOCAL CAPITAL MARKETS
LOCAL CURRENCY
LOCAL DEBT
LOCAL FINANCIAL INSTITUTIONS
LOCAL FINANCIAL MARKET
LOCAL INVESTORS
MARKET DEVELOPMENT
MARKETING
MARKETING STRATEGY
MATURITIES
MFI
MFIS
MICROFINANCE
MICROFINANCE INSTITUTIONS
NOMINAL INTEREST RATES
PLEDGES
POOR CLIENTS
PORTFOLIO
PORTFOLIO GROWTH
PREPAYMENT
PREPAYMENT PENALTIES
REGISTRATION FEES
REGULATORY FRAMEWORK
RESERVES
RETURN
RISK MANAGEMENT
RURAL BANKS
SAVERS
SAVINGS
SOCIAL CRITERIA
SOCIAL MISSION
SOLVENCY
SOURCE OF FUNDS
STRATEGIC INVESTORS
SUB-SAHARAN AFRICA
SUBORDINATED DEBT
SUPERVISORY AUTHORITIES
TREASURY
TRUE COST
UNSECURED DEBT
VALUABLE
VALUATION
VENTURE CAPITAL
VENTURE CAPITAL INVESTMENT
WITHHOLDING TAXES
Online Access:http://documents.worldbank.org/curated/en/2007/08/8382333/microfinance-institutions-capital-structure-decision-making-call-greater-awareness
http://hdl.handle.net/10986/9562
Description
Summary:Microfinance institutions (MFIs) today have an increasingly broad range of financing sources at their disposal. This allows for greater funding diversification, but it also makes decisions about capital structure more complex. Several high-profile financing transactions for MFIs have taken place recently, including securitizations, local bond issues, the first large-scale venture capital investment in an MFI, and the first Initial Public Offering of shares. In addition, where their legal structure permits, many MFIs are launching large-scale deposit mobilization campaigns as a core funding strategy. Consultative Group to Assist the Poor (CGAP) and Grameen Foundation recently conducted a survey of MFI managers to better understand MFI capital structure decision-making processes in the face of these expanding financing options.

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