MIX Market Supports UN Development Strategy in Nepal
  • February 02, 2012

The "Enhancing Access to Financial Services" (EAFS) project – aimed at strengthening the capacity of the Nepalese microfinance sector – has recently registered all seventeen of its partner MFIs on MIX Market, thanks to the efforts of the Centre for Microfinance (CMF), MIX’s in-country data collection partner. Both technology and transparency remain significant challenges to MFIs in Nepal, and the creation of these new profiles represents a major step in addressing such issues. Thanks to the project, users can now view, analyze and compare NRB-EAFS partner organizations’ financial and outreach data on MIX Market, using an array of sophisticated online tools previously unavailable to them. Along with the ten M-CRIL ratings commissioned by the project, these MIX Market profiles will allow stakeholders to better pinpoint the strengths and weaknesses of MFIs in Nepal and create new strategies to better serve its impoverished populations. The institutions in question are: CBB, CSD, DD Bank, FORWARD, JBS, NRDSC, NESDO, Nirdhan, PGBB, SLBBL, Mahuli, MPGBB, NWCSC, RWDC, SOLVE, UNYC, and WDCN. For more information, see Microfinance Focus’ recent article describing the project. The World Bank, UNDP and UNCDF are supporting the Government of Nepal’s efforts in increasing access to financial services in the remote and un-served areas of Nepal. The Project intends to enhance access to financial services and the use of formal financial services particularly by poor youth and excluded groups in a sustainable fashion. Enhancing Access to Financial Services (EAFS) is initiated under technical and initial funding from UNDP/UNCDF and implemented by the Nepal Rastra Bank. EAFS aims to increase outreach by promoting linkages between Financial Services Providers (FSPs/MFIs) and Saving Credit Groups (SCGs). It will also encourage innovation, carry out public information campaign for increasing the frontier of microfinance services. The Fund for Inclusive Finance (FIF) is the one of the major working mechanism to promote inclusive finance. It is a new technical assistance fund to promote the development of inclusive financial sectors. This is implemented and managed by the NRB, and will provide technical assistance to address demand-driven, high-quality and sustainable financial services. The project works partnering with FSP/MFIs to increase outreach, strategic partnership will be forged with wholesalers and innovative partnership with FSPs/MFIs. In the context of this project, inclusive finance refers to an extension of full range of financial services to the bankable households, SCGs and enterprises through different financial services providers (i.e. FSP, MFIs, FINGOs, Dev. Banks, Credit union, credit cooperatives, financial companies, remittance companies). Technical assistance to the partner FSPs and SCGs will be provided through Business Development Service Providers (BDS).