Establishes a common set of performance standards for all institutions engaged in microfinance. Serves as a guide to various stakeholders. MFI management can use it in identifying weak areas in its operations. Private investors can utilize it on whether to make investment in an MFI or not. Wholesale financial institutions can assess creditworthiness of MFIs, while donor agencies can be guided in identifying type of assistance needed by an MFI. The standards look at both institutional and financial viability, with the latter using PESO indicators -- portfolio quality, efficiency, sustainability and outreach
