Ladies’s World Banking Community Engagement Supervisor Rebecca Ruf will educate a course on “Monetary Administration for MFIs” at this yr’s Microfinance Coaching Program in Colombia. The six-year-old capability constructing program hosted by the Boulder Institute of Microfinance on March 5-16th, 2012 brings collectively leaders of Latin American microfinance establishments (MFIs) to evaluate greatest practices for the trade.
The monetary administration course will provide pointers on the best way to construct a robust monetary threat construction based mostly on toolkits developed by WWB with the help of Citi, CAF, and AECID in Monetary Danger Administration, and Money Administration and Liquidity. The course combines concept and sensible workouts and group discussions. The final day can be a simulation of an ALCO Committee, the place members current their monetary dangers to the category.
Monetary threat administration is crucial for MFIs, given their nature as monetary establishments. Liquidity issues might jeopardize the viability of MFIs, particularly for establishments that take deposits. Moreover, as MFIs turn out to be deposit-taking establishments, they’re topic to extra rigorous regulatory necessities and should guarantee they’ve the suitable monetary and liquidity frameworks in place. Entry to extra subtle funding sources together with business funding, capital markets, new financial savings merchandise, and others requires that MFIs adapt formal institutional buildings, insurance policies, procedures and experiences to handle their monetary dangers and defend their core enterprise. WWB understands the trade’s rising sophistication and helps establishments with the event of monetary optimization toolkits to make sure that administration has the sensible instruments and fashions out there. WWB has been a pioneer within the trade within the space of monetary threat administration, creating the primary Monetary Danger Administration Toolkit, with the help of Citi, in 2005 and has educated greater than 336 practitioners, representing 126 MFIs from 57 international locations.
