Standardized performance measurement for microfinance institutions in Indonesia as a tool for improving institutional sustainability, productivity, efficiency, and outreach

• Main Author: Fong, Tjoeng Pik
• Format: text
• Language: English
• Published: Animo Repository 2004
• Subjects: Financial institutions > Indonesia; Microfinance > Indonesia; Banks and banking > Indonesia; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_doctoral/43; https://animorepository.dlsu.edu.ph/context/etd_doctoral/article/1042/viewcontent/CDTG003741_P.pdf
• Institution: De La Salle University

Microfinance Institutions (MFIs) are organizations with the vision of being a major participant in poverty alleviation and the mission to exercise its corporate social responsibility by establishing a potent venue for providing microcredit to those who do not have ready access to conventional financial assistance. In order for MFIs to realize their vision and achieve its mission, they need a strategy in strengthening their operating performance. A strategy suggested by this researcher is by setting a standard on several performance indicators that are related to sustainability, productivity, efficiency and outreach, which are considered to be the perspectives of the MFI in attaining their vision and mission. The standards established were fitted into a scorecard for the MFIs to apply. Several characteristics were figured out as a set of standardized key factors that may serve as the benchmark for the MFIs to approximate or exceed in their performance.