Benchmark – based review as a strategy for microfinance delivery

Abstract

Microfinance is one of the development tools for poverty reduction. The traditional supply-led subsidized credit delivery has led to increase in credit disbursements. However, there is shortage of model benchmark and indicators for evaluating and comparing performance of microfinance schemes. This study reviewed the monitoring strategy of the Micro Finance Policy Regulatory and Supervisory Framework and highlighted the acute absence of benchmarks and indicators for measurement of performance. Data were gathered from secondary sources. Analysis was by simple descriptive statistics. Recommendations were made for effective benchmark-based periodic review of the performance of micro-credit institutions.