Measuring Performance of Microfinance Institutions: Trainer's Guide

As the microfinance industry matures, the importance of common standards by which MFIs can be measured increases. Therefore, USAID has funded the development of a toolkit respond to the growing need for standardization of financial terms, formats, and indicators so that MFI managers can develop consistent performance monitoring systems based on international standards. Taken together, these materials present an integrated framework for developing financial statements and reports, making adjustments to financial statements, calculating recommended financial performance ratios and indicators, and templates for creating and analyzing performance monitoring reports.

The toolkit includes this trainer's guide as well as a framework, presentation and presentation handouts that can be used at conferences, seminars, or trainings, to encourage the adoption of this set of financial reporting and analysis tools.

The design of the training is based on a participatory training model and incorporates theory, skill development, and practice through exercises, a case study, and practical use of the spreadsheet tool. The Trainers’ Guide is a suggested format to facilitate the training. This has been written as a guide to assist the trainer in conducting an efficient 3-day training program.