Transformation of microfinance NGOs into privately owned, regulated financial institutions is a relatively new phenomenon in the field of microfinance. The drive towards financial self-sufficiency, along with a decreased availability of donor funds, has led microfinance practitioners to consider options for commercialisation and entry into the formal financial sector.
Presents:
* range of transformation models and common issues specific to the transformation process,
* regulatory, financial and operational issues involved in the process of integration into the formal financial system,
* general costs, benefits and key issues involved in creating a formal financial institution.
Illustrates transformation challenges faced by microfinance NGOs such as PRODEM/BancoSol and Pro- Credito/Caja de Ahorro y Prestamo Los Andes in Bolivia, ADEMI/Banco ADEMI in the Dominican Republic, Servicio Crediticio de AMPES/Financiera Calpiá in El Salvador and Corposol/Finansol in Colombia.
