Table of contents for Transforming microfinance institutions : providing full financial services to the poor / Joanna Ledgerwood and Victoria White ; with contributions from Monica Brand ... [et al.].


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PART I     Savings and Regulation: Principles and Policies     I
Chapter 1  Mobilizing Savings from the Public: 10 Basic Principles  3
by Marguerite S. Robinson
Mobilizing and Intermediating Savings in Developing
Countries                                      3
Ten Basic Principles for MFIs that Collct Savings
friom the Public                               4
Who Benefits?                                   17
Chapter 2  Regulation and Supervision: The Policy Framework  21
by Gabricla Braun and Alfred Hannig
Key Policy Issues                               22
The Strategic Approach to Regutlation           26
1th IR ulataor Framework                        37
Suprvisionll                                    46
Remaining Challenges                            52
Annex 2A: Note on Supervising Savings and Credit
(Coperatives                                  54
Annex 2B: Risk Framework (Example from Uganda)  55
PART 1I     Transforming the Institution: Strategic Decisions 65
Chapter 3   Planning for Transformation                        67
Fuundamental Changcs Resulting roim rainsfonnation  6/
Leading the Tansfnormat on
Plannig i i1 Transfoirmatl'1on                   r
Managing the Tiransformation                     80
Funding the Transfior anon                      s8
Annex 3A Sarmple Ouine for a Transfirmation Plan  83
Axecx 31: Sample Terms of Refercnce for
Development of a Transf irmation Plan          88
Annex 3C: Sample Teris of -Reference t  r a
Transformation Managej                         90
Annex 3D: Sample Transfibmation Budget           92
Chapter 4   Marketing and Competitive Positionig               95
by Monica Brand
Marketing                                        96
Marketing Inteligence                            97
The Total ProIduct                              104
Delivery Channeh                                111
Branding                                        I
Co imunircatio s Strategy                       120
ImplementationI Consolidating the Pies          12
Annex 4A: Sa ple Outline of a Marketing Plan    125
Annex 4: Sam ple Terms of 'Refernce for
De\elopmert of a Marketing Plan              126
Annex 4C: C hckist for Marketini and Competiti  c
Positioing                                    128
Chapter 5   Strategic and Business Planning                   133
Developing a Strategy                           134
JInsitutional Transformnation and the Role of the NGO  137
Development of the Business Plan                142
Financial Modeling Tools and Mithods            144
Financial Modeling i14?
Tax Strategy Considerations                     152
Annex 5A: Terms of Refrecene: Develiopiment
of the Business Plan                          157
Annex 5B: (Checlist for Stratcgic
and Busim ss Planing                          159
Chapter 6   The Funding Structure                             163
Fund:ing Sources .4
Fundinig  onslderat io                          16
Funding StruCturle (1p-1io0n s                   71
)ptimal Iev crage?                              186
IAnnx r : am Ie 'fns of Refer`lence: Funding
Structure                                     190
Annex 6B: Additional Infornatioon on Microfinance
Bond Offerings                                192
A-ne 'x C: Checklist for the Funding Structure  194
Chapter 7   Ownership and Governance                          199
Choosinc g the Type of Investor                 200
Seeking Potential nvestors                      211
Effective Governance                            220
1-nnex 7A  aimpTl Te '1rms on f Rcference: Advisory
Services on Ownercship and Govc ran ce       235
Annex /B: Sample Term Sheetr utlinc             23 6
Annex 7C: Discounted Cash Flow Valuation        237
Annex TD: Sample Board Agenda for
Transtbrmed MFIs                             241
\Annex 7E: Checklist for Ownership and Governance  242
Chapter 8   Legal Transformnation                             245
by Deborah Burand
lManaging the -egal Aspects of Transfornation    45
Survneving the Legal and Regulatory L andscape  248
Managing Constituent Documents and Preexisting
Obligations                                  25I
N gotiaring Investor Documents                  254
Annex 8A: Sample Checlikht of Lxgal and
Reguiatory Issues                            261
knnc 8B: Sample Terms of Refrence: Hiring
I cal Counsel to Support Legal Transformation  265
An,nex 8S: Sample Conflict of intrest Policy    267
PART III    Transforming the Institution:
Operationa implications                           271
Chapter 9   Human Resources Management                        273
Adapting the (rganizational Culture             274
Adapting th Organizational St uictire          278
Fisuring the Right Staff                        285
Annex 9A Siampi Ic 'ims of Refe rence: Human
RcsroUrces Mlanageniet                       294
Annix B: rExamiples of Job Responsibilities
for Senior Staff                              296
Arinx 9C(: Sampni  Organizational Charts        298
Annen    : C heckist fir Managing Humani Resources  303
Chapter 10 Financial Management                               305
Financial Manageien t Functions                  306
Financial Planning and Budgeting                 308
Financial Control                                310
Treasury Managemlent                             317
Investor Relations                               326
Annex 10A. Sam lec Terms of Reference:
Acivity-Based Costing                         327
Annex 10B: Samile ITern s off Rceferne  I Treasiur
Management                                    328
Annex 10C: Checklist for Financial Management    330
Chapter 11 Management Information Systems                     333
Planning for an MIS Upgrade                     334
MIS Upgrade Process                             3 36
Software RcquirInemnts                          340
Infrastructure                                   355
MIS Security                                     357
Human Resources Im plications                   357
Annex 11A: Sam e Requciremets D ocumern         361
Annex 11B: Sample Terms of Referericc: MIS
Assessment and Softivare Seectic on           364
Annex I: IC: Terms of Re frencei Advisoir Services
on Implcmentation of MIS Upgrade              367
Annex l ID: Management Inforimation Systems
Checklist                                     369
Chapter 12 Internal Control and Audits                        375
Comnponents of Effective Internal Controls      376
Risk of Poor Controls: Overiew of Fraud in MFIs  380
Preventive ,oitrols: Po icies and Procedures    381
Detective C ntrol: The In ternal Audit          387
Detective Cont ol. The External Audit t           92
Supervision: Eval.ating Internial Controls      394
Annex 12A: Sample Terms of RcfereTnce: internal
Controls Assessiment                          396
Annex 12B: Internal Audit Manual: Sample Outline
of Contents                                   398
Annex 12C: Sample Audit Committee Charter        395)
Annex 12D: Proposed Format for Quarterly Audit
and Inspection Activity Report to the Auilit
Conmitttee of the Board of Directors          402
Annex 12E: Checklist ftor iitcrnal Conirol
and Audi[s                                    403
Chapter 13 Customer Service and Operations                    409
Transformation of Operations                    410
Customer Service Framework                      412
Branch Structure and Service                    418
Managing Cash                                   428
Deposit Account Managelcnt                       '(430
Documentation Management                        432
Annex 13A: Sample Terms of Referencce: Improving
Branch- Level Customer Service                434
Annex IlB: Cliecklist for Customer Service
and Operations                                435
PART V      Case Studies                                      439
Chapter 14 Creating a Separate Tier: The Micro Finance
Deposit-Taking Institutions Act, 2003             441
by Gabriela Braun and Alfred Hannig
The Financiai Sector                            442
Regulation of Microfinance Dcposit-Taking
Institutiuons                                 443
The Micro Finance Deposit-Taking Institutions Act  447
Licensing Begins                                45 1
Key Success Factors                             453
Remaining Challenges                            45
Chapter 15 The Creation of Uganda Microfinance Limited        459
Background                                      460
Planning and Managing the Transformation        463
Operational Transformation: Upgrading
and Systemizing                               465
Structural Transformation: Creating UML
and Attracting Investors                      470
Financial Transformation: Launching the MDI     473
Appendix 1 Sequencing the Introduction of Public Savings
in Regulated MFIs                                 481
by Mararguerite S. Robinson
Fifteen Steps: From Studying Savings Demand
to Investing Excess Liquidity                 481
FThe Crucial Role of Approriate Sequencing      503



Library of Congress subject headings for this publication: Microfinance Developing countries, Economic assistance, Domestic Developing countries, Poverty Developing countries