Second Consecutive Social Performance Reporting Award
The First MicroFinanceBank Ltd. Pakistan (FMFB-P), an institution of the Aga Khan Agency for Microfinance, was awarded a certificate of recognition in the silver category for reporting on social indicators to the Microfinance Information Exchange (MIX) by the World Bank affiliate, CGAP (Consultative Group for Assisting the Poor), in the year 2010. This is the second consecutive Social Performance Reporting Award won by FMFB-P. The award was initially launched in 2009 by CGAP together with its partners the Michael & Susan Dell Foundation, the Ford Foundation, and the Social Performance Task Force (SPTF).
The award is designed to promote greater transparency in social performance reporting of Microfinance Institutions (MFIs) and recognises the efforts of MFIs in establishing a strong social performance outlook within their organisation.
Around 350 MFIs submitted reports on their social performance to the MIX this year for the Awards, easily surpassing the 200 that were received in 2009. “This is a tremendous response to the call for greater transparency,” said Xavier Reille, Lead Microfinance Specialist at CGAP. “We have seen nearly a doubling in the number of applications to the Awards in a single year, and it shows the sincerity of MFIs in their mission of providing financial services to the poorest people, as well as to their own financial bottom lines.”
“FMFB has been working over the last two years to establish its own unique set of poverty-measurement indicators and to mainstream its efforts to measure poverty levels of clients throughout the country,” said Hussain Tejany, President / CEO of FMFB. He added that FMFB-P had been reporting on a set of social performance monitoring indicators that had been developed through the Social Performance Task Force in cooperation with the industry leaders. Important indicators included the degree to which MFIs were measuring the poverty level of their clients and the poverty-measurement tools being used.
The Social Performance Reporting Awards provide a yardstick for those wanting to assess an MFI’s commitment to showing progress in helping their clients, supporting their staff, and protecting the environment. MFIs across the world are showing a strong commitment to transparency and accountability in their efforts to reduce poverty, with a growing number reporting on the social benefits of their activities to their investors and to the public.
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About the Award
The Social Performance Reporting Awards provide a yardstick for those wanting to assess an MFI’s commitment to showing progress in helping their clients, supporting their staff, and protecting the environment.
The awards reward openness and accountability in reporting, not the actual performance of MFIs on these measures. More than 200 MFIs submitted reports on their social performance in 2009 to MIX and this number increased significantly in the second round of awards reaching 350 applications.
To qualify, MFIs provide reports on a set of social performance monitoring indicators that have been developed and refined through the Social Performance Task Force in cooperation with industry leaders. One of the most important indicators is the degree to which MFIs are measuring the poverty level of their clients and which poverty-measurement tools they are using.
The awards feature three levels of recognition:
- GOLD AWARD: awarded to MFIs that complete the report, provide data on poverty measurement, and have a social rating that includes auditing of the poverty tool used by the MFI.
- SILVER AWARD: awarded to MFIs that complete the report, and also provide data on poverty measurement.
- CERTIFICATE: awarded to MFIs that complete the Social Performance Standards Report.
In 2010, 19 MFIs have received Gold Awards, 32 won Silver, and 122 were recognized with certificates. Additionally, five networks received awards for the strong social reporting of their affiliates.
About the MIX
The Microfinance Information Exchange, Inc. (MIX) is the leading business information provider dedicated to strengthening the microfinance sector. MIX is a non profit organization incorporated in June 2002, with headquarters in Washington, DC, and regional offices in Peru, Morocco, and India. MIX was founded by CGAP (Consultative Group to Assist the Poor), and is sponsored by Citi Foundation, Deutsche Bank Americas Foundation, IFAD, Bill & Melinda Gates Foundation, and Omidyar Network.
The organization's core focus is to provide objective data and analysis on microfinance providers. In doing so, MIX promotes financial transparency in the industry and helps build the information infrastructure in developing countries. This addresses a key challenge for the microfinance industry: the lack of reliable, comparable and publicly available information on the financial strength and performance of microfinance institutions as well as their social impact. MIX provides detailed financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators and leading donor organizations and investors in microfinance. This is done through the online information exchange MIX Market (www.mixmarket.org) and through a variety of publications including the MicroBanking Bulletin and reports and analysis on regional and country level microfinance sectors.
About The First MicroFinanceBank Ltd. Pakistan
The First MicroFinanceBank Ltd, a part of the Aga Khan Agency for Microfinance (AKAM), is a non-commercial, private sector microfinance bank licensed by the State Bank of Pakistan. FMFB strives to alleviate poverty through sustainable economic development by offering credit, savings and life insurance services along with efficient, low cost funds-transfer services. It operates in 147 locations, including 83 automated branches all over Pakistan, as well as through 64 Pakistan Post outlets. As of December 2009, FMFB had disbursed over PKR 15.46 billion (US$ 190 million) in the form of 862,500 loans while generating a deposit base of PKR 5.22 billion (US$ 61.5 million).
About Aga Khan Agency for MicroFinance (AKAM)
Since its establishment in 2005, AKAM has brought together over 25 years of microfinance activities, programmes and banks that were administered by sister agencies within the Aga Khan Development Network. The underlying objectives of AKAM are to reduce poverty, diminish the vulnerability of poor populations and alleviate economic and social exclusion. AKAM is a not-for-profit, non-denominational, international development agency created under Swiss law. Its headquarters are in Geneva, Switzerland. It is governed by an independent Board of Directors. The Chairman of the Board is His Highness the Aga Khan.