Commercialization of Microfinance

The module « Case studies in microfinance » is composed of two courses :

1) Case studies in ethical issues of microfinance (Prof. M. Hudon)

2) Case studies in financial issues (Prof. M. Schmit)

• Prof. M. Hudon (Case studies in ethical issues of microfinance):

1) Introduction to ethics in microfinance & key principles

2) Compartamos (1): Metro project & interest rates in microfinance

3) Compartamos (2): IPOs in microfinance

4) Green microfinance

5) Microfinance Overindebtedness

6) Non-financial services in microfinance

7) Competition and client protection in microfinance

8) Microfinance & Ethics: Where do we go?

• Prof. M. Schmit (Case studies in financial issues):

1) Understanding risks and their sources (session 1)

2) “Symbanc” Managing liquidity risk in a MFI (sessions 2 and 3)

3) Managing strategic risk and sustainable growth in MFIs (session 4)

4) Development of Microfinance in Bolivia (session 5)

5) Managing risk in a MFI and regulatory requirements (session 6)

6) Operational risk and risk governance: Building up a risk management framework (session 7 & 8)

• Prof. M. Hudon (Case studies in ethical issues of microfinance):

• Study management practices in microfinance and their ethical implications.

• Address ethical concerns related to the evolution of the microfinance sector and their managerial implications.

• Understand how microfinance can be green.

• Discuss whether it is relevant for microfinance to aim at an environmental bottom line.

• Prof. M. Schmit (Case studies in financial issues) :

The course aims at:

• understanding and assessing risk management of MFIs.

• understanding the need for financial regulations and the lessons to be learned from the current crisis.

• being able to provide a sound financial statement analysis of a MFI.

• being able to define and write a business plan (final group work).

The topics taught in the previous courses will be used to support the debates. We expect this course to be highly interactive since it will mainly be based on case studies.

Contribution to the teaching profile

• Understand the various methodologies, products and models in the microfinance sector

• Analyse the performance of microfinance institutions

• Rationalise the different perspectives on development issues in the microfinance sector

• Recommend practical and creative managerial solutions to the most pressing challenges faced by microfinance institutions.

References, bibliography, and recommended reading

See course outlines for details.

Contacts

Email Marek Hudon : mhudon@ulb.ac.be

Email Mathias Schmit : Mathias.Schmit@ulb.ac.be

Method(s) of evaluation

• Other

Other

• Written assignment for Prof. M. Hudon (course: Case studies in ethical issues of microfinance)

• Group oral presentations (course: Case studies in financial issues)

Mark calculation method (including weighting of intermediary marks)

Two marks A and B must set the final mark C.

• if A and B are greater than or equal to 8/20, then C = (A + B)/2

• if A ; 8/20 or B ; 8/20, then C = min (A,B).

• Mark A: Prof. M. Hudon (Case studies in ethical issues of microfinance):

The course is made up of formal presentations and class discussions organized around the readings and case studies.

A minimum of 80% of attendance is expected.

The course will be graded upon the writing of an individual final paper.

• Mark B: Prof. M. Schmit (Case studies in financial issues):

The exam will consist of a presentation of a case study in group (4 to 6 participants).

The grade will be based on:

• Participation (and thus your active presence), group works, individual tests and quality of presentations (including your MFI analysis); and

• Final group assignment (case study).

Language(s) of evaluation

• english