Virtual Conference on the Financial Crisis

The Financial Crisis and Microfinance: Experience, Insights, and Implications

November 18-20, 2008

Join CGAP and industry experts at a Virtual Conference to discuss the impact of the financial crisis on microfinance and poor people.

Over the course of three days (November 18-20), participants will share their experiences and insights and discuss how to respond to upcoming challenges. The Virtual Conference will focus on microfinance institutions and their clients, and on donors and investors.

Ahead of the conference, we encourage all participants to complete a short survey to help guide our discussion. Results will be compiled and shared with all participants during the conference.

Agenda

Session 1: Microfinance Institutions and their Clients

Is microfinance and its clients isolated from the current global financial crisis? Or, are microfinance markets as vulnerable as financial markets in developed economies?We have heard anecdotes on both sides. During the first session of the conference, we seek to hear from as many practitioners and people who work with them to gather evidence from different countries.

Driving question: How have clients and the institutions that serve them been affected by current events?

1. To what extent has the financial crisis affected the operations of MFIs? How have MFIs’ growth plans been affected? What impact, if any, has the crisis had on operating costs? How has MFIs’ portfolio quality been affected, if at all? 
2. What can MFIs do to maintain their operating margins and strengthen their operations during the crisis? How can MFIs maintain well-managed growth and meet client expectations? How can MFIs manage repayment risks?
3. To what extent is the liquidity crunch affecting MFIs? What types of microfinance institutions are affected? Are some regions more affected that others? Has the cost of capital changed?
4. What can MFIs do to mitigate liquidity risks? Are there any concrete examples of response?

Session 2: Donors and investors

Donors and investors spend significant sums of money on microfinance. A recent CGAP survey indicated that up to 11.7 billion USD from 54 leading donors and investors was committed as of December 2007. Though not the only source of funding for MFIs, funders and their behavior have significant impacts on MFIs—especially during difficult times.

Driving question: How are donors and investors responding to the financial crisis?

1. What will be the main funding options for MFIs in the mid-term? Who will be the lenders of last resort for MFIs?
2. What markets and types of institutions do investors consider the most risky? What are the characteristics of these markets and types of institutions? Has the revision of risk affected pricing?
3. Is the crisis affecting some types of funders more than others? How have private, commercial funders reacted?
4. To what extent are different types of donors and investors having difficulty raising new capital? What is the experience of fund managers? Are public development agencies getting signals from their ministries or governments? Are development finance institutions being cautioned against excessive exposure?
5. What can donors and investors do to mitigate industry risks and seize opportunities?