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Below you find a rundown of key 2005 MIX Benchmark data:

• MENA leads in depth of outreach
  
• Asia ahead in Outreach
  
• Africa strong in savings mobilization
  
• ECA with low delinquency ratio
  
• Competition is reducing profitability in LAC
  
• Selected indicators by region for 2005
  

MENA leads in depth of outreach
The typical microfinance institution in the Middle East and North Africa (MENA) disburses the smallest loans in the world. In fact, loan sizes of microfinance institutions in other regions are at least twice the size, with the exception of Asia.

Microfinance institutions in MENA have the lowest delinquency rate worldwide, with a Portfolio at Risk over 30 days (PAR-30) below 0.4%. However, in a global comparison the region has the smallest market share and it does not mobilize any savings.

Source: Microfinance Information Exchange, Inc. (MIX), based on the 2005 Benchmarking Microfinance Reports on Africa, Asia, ECA, LAC and MENA

Asia ahead in Outreach
Asian microfinance institutions account for over two-thirds of the total number of borrowers worldwide, driven by the four biggest microfinance institutions in the region: Grameen Bank, ASA, BRAC and BRI. Asian microfinance institutions also attain the highest depth of outreach second only MENA.

The median Asian microfinance institution is with 19,000 borrowers not that much larger than the median microfinance institution in Africa, LAC, or MENA (all between 13,000 and 17,000 borrowers). This proofs that the region, less the big four, remains comparable in scale to the rest of the world.

Source: Microfinance Information Exchange, Inc. (MIX), based on the 2005 Benchmarking Microfinance Reports on Africa, Asia, ECA, LAC and MENA

Africa strong in savings mobilization
The median microfinance institution in Africa mobilizes more savings compared to its loan portfolio than microfinance institutions in any other region. However, only a limited number of microfinance institutions actually mobilize savings – the disparity between median and weighted average in the graph below displays this clearly.

Relative loan sizes are among the largest in Africa, suggesting very low depth of outreach. In addition, microfinance institutions in Africa have the lowest performance in terms of sustainability and thus show a clear need to improve their revenue income ratio.

Source: Microfinance Information Exchange, Inc. (MIX), based on the 2005 Benchmarking Microfinance Reports on Africa, Asia, ECA, LAC and MENA

ECA with low delinquency ratio
East European and Central Asian (ECA) microfinance institutions keep delinquent loans below 1% of their portfolio – less than halve of any other region except MENA. In addition, relative loan sizes in ECA are higher than in most regions, except Africa, and yields are lower.

Saving mobilization continues to be a challenge for the median microfinance institution in ECA, but aggregated the region is doing well compared to even mature microfinance institutions in LAC. Commercial funding remains the main source of funds.

Source: Microfinance Information Exchange, Inc. (MIX), based on the 2005 Benchmarking Microfinance Reports on Africa, Asia, ECA, LAC and MENA

Competition is reducing profitability in LAC
During 2005, microfinance institutions in Latin America and the Caribbean (LAC) increased operational efficiency and reduced loan delinquency to new lows, while reducing yields. Both, commercialization and competition, has resulted in the highest commercial funding liability ratios worldwide.

In 2004, the median microfinance institution in LAC was the most profitable, but in 2005 the region fell behind MENA as competition increased and margins decreased, amplified by the entrance of large commercial players into the sector.

Source: Microfinance Information Exchange, Inc. (MIX), based on the 2005 Benchmarking Microfinance Reports on Africa, Asia, ECA, LAC and MENA

Selected indicators by region for 2005

Source: Microfinance Information Exchange, Inc. (MIX)