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
Format:	Brief
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

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recordtype	oai_dc
spelling	okr-10986-95622021-04-23T14:02:46Z MFI Capital Structure Decision Making : A Call for Greater Awareness Deshpande, Rani Nestor, Camilla Abrams, Julie 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 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. 2012-08-13T08:58:01Z 2012-08-13T08:58:01Z 2007-08 http://documents.worldbank.org/curated/en/2007/08/8382333/microfinance-institutions-capital-structure-decision-making-call-greater-awareness http://hdl.handle.net/10986/9562 English CGAP Brief CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	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
spellingShingle	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 Deshpande, Rani Nestor, Camilla Abrams, Julie MFI Capital Structure Decision Making : A Call for Greater Awareness
relation	CGAP Brief
description	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.
format	Publications & Research :: Brief
author	Deshpande, Rani Nestor, Camilla Abrams, Julie
author_facet	Deshpande, Rani Nestor, Camilla Abrams, Julie
author_sort	Deshpande, Rani
title	MFI Capital Structure Decision Making : A Call for Greater Awareness
title_short	MFI Capital Structure Decision Making : A Call for Greater Awareness
title_full	MFI Capital Structure Decision Making : A Call for Greater Awareness
title_fullStr	MFI Capital Structure Decision Making : A Call for Greater Awareness
title_full_unstemmed	MFI Capital Structure Decision Making : A Call for Greater Awareness
title_sort	mfi capital structure decision making : a call for greater awareness
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/08/8382333/microfinance-institutions-capital-structure-decision-making-call-greater-awareness http://hdl.handle.net/10986/9562
_version_	1764409824734347264

MFI Capital Structure Decision Making : A Call for Greater Awareness

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