The China Microfinance Institution Association (CMIA), an organization that advocates for the interests of 92 domestic member microfinance institutions (MFIs) covering 27 provinces, plans to introduce a credit rating system to evaluate MFIs as early as July.
The ratings will incorporate impact on the local economy, risk management capacities and profitability. The system is intended to provide financial authorities and commercial banks with a dependable reference on the credit risks of MFIs. By strengthening transparency, supporters hope to facilitate financing from banks and other investors for loans that support small and medium-sized enterprises (SMEs).
For the year 2011, 67 Chinese microfinance institutions (MFIs) reporting to the US-based nonprofit Microfinance Information Exchange (MIX) held deposits of USD 27.2 billion outstanding to 7.6 million depositors and loans of USD 13.3 billion disbursed to approximately 568,000 active borrowers.
By Jennifer Young, Research Associate
Sources and Additional Resources
Global Times Story: “Ratings on the Way for Micro-Lenders”
http://www.globaltimes.cn/content/772237.shtml#.UWikwLuh6Pj
MicroCapital Story: “MICROCAPITAL BRIEF: Chinese Government Establishes 12 Goals to Improve Local Capital Markets, Access to Finance for Private Small and Medium-Sized Enterprises,” April 9, 2012.
https://www.microcapital.org/microcapital-brief-chinese-government-establishes-12-goals-to-improve-local-capital-markets-access-to-finance-for-private-small-and-medium-sized-enterprises/
MicroCapital Story: “MICROCAPITAL BRIEF: People’s Bank of China, PlaNet Finance Research Project Aims to Upgrade Microfinance Risk Management,” March 6, 2012.
https://www.microcapital.org/microcapital-brief-peoples-bank-of-china-planet-finance-research-project-aims-to-upgrade-microfinance-risk-management-2/
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