IV.2.2- Selection of the social performance
indicators
Today, data availability predominantly allows for the
measurement and assessment of the outreach to microfinance clients for a large
sample of MFIs. However the access to data in our environment is sometimes
difficult. In fact, on one hand, we have used a main indicator which serves to
measure the social performance that is Average loan size. On the other hand, we
have used some indicators which are consistent and are adaptable in our
environment or sample, namely Engagement in Favor of Individual Related and
Engagement in Favor of Global related.
? Average loan size: The average
loan size measure is the most common used proxy for the depth of outreach to
microfinance clients in the existing empirical research of the social
performance of MFIs14.
S&P (2007) included the average loan size in their management
and strategy assessment of a MFI. The agency stressed that the appropriateness
of the measure of depth of outreach is depending on the institution's
self-declared social objectives. In addition, the SPTF (2009) standard reports
showed that the outreach depth is an important feature in the various
measurement of performance and assessment tools used.
Olivares-Polanco (2004) found that the per capita GNP and the
per capita GNP of the 20 percent poorest average loan size measures are highly
correlated. However, Schreiner (2001) opposed the use of average per capita GNP
for two reasons. First, the per capita GNP is typically higher than a country's
median per capita GNP or compared to the poverty-line income. Secondly, per
capita GNP is a flow from average income in a year, whereas the term the flow
disbursed as a loan may be very different. Following the studies of
Olivares-Polanco (2004) and Cull et al. (2007), the average loan size divided
by per capita GDP is considered in this research.
? Engagement in favor of related
Commitment
Engagement in favour of related Commitment is a prudential
ratio used as an indicator of social performance. This ratio was defined in the
survey conducted by the Ministry of Finance (MINFI) near the Microfinance
Institutions. Indeed, the aforesaid investigation culminates in the setting-up
of a report which follows by the assessment of Cameroon MFI, carried out within
the framework of the implementation of the Microfinance Activity Evaluation and
Supervision
14 Olivares-Polanco, 2004; Hermes,
Lensink & Meesters, 2007; Cull, Demirguç-Kunt & Morduch, 2007
& 2009; Gutiérrez-Nieto, Serrano-Cinca & Mar Molinero 2009, and
Mersland & Strøm, 2009.
52
Analysis of microfinances' performance and
development of informal institutions in Cameroon
By Djamaman Brice Gaétan
System (SESAME). This implementation was carried out from
March to September 2011. The prudential ratio indicates the degree of
commitment of microfinace with its target population. It consists of two
components, namely:
? The Commitment in Favor of Individual Related
(CFIR);
? The commitment in Favor of Global Related (CFGR)
Within the framework of our analysis, these two components
will be considered as social performance indicators. In order to provide
further explanation we are going to illustrate a particular case of CCA.
The case of Credit Communautaire d'Afrique
(CCA)
Commitments: The Department of
Credit is responsible for the liabilities of the institution. The procedure for
granting credit is described in a document entitled "MANUAL CREDIT" which was
updated in August 2010 by the audit unit. This manual assumes the
responsibilities of all those involved in the process of granting credit. In
addition, it describes the procedures for granting credit and the methodology
for monitoring commitments and guarantees to collect. Accounts managers take
delivery of each agency credit applications and carry out the assembly and
analysis of credit records under the supervision of the agency. Counterfactual
analysis of cases is made by the Regional Director before their transmission to
the Regional Credit Committee opinion. Credit records which have received a
favorable opinion are then transmitted to the Credit Committee Branch for a
final decision on all competitions lower than or equal to 50 Million. Beyond
this threshold, only the CEO is responsible for taking the decision to grant
credit.
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