TAMFI conducted a comprehensive training on Financial Management and Sustainability for Microfinance Institutions (MFIs) on 18th–19th August, bringing together board members, senior managers, and key technical staff from across the sector.
The training focused on enhancing participants’ understanding of financial management principles, including the preparation and interpretation of key financial statements such as the Statement of Financial Position, Statement of Comprehensive Income, and Cash Flow Statement. Participants also explored critical financial performance indicators covering profitability, liquidity, efficiency, solvency, and capital adequacy, alongside sustainability metrics such as Operational Self-Sufficiency (OSS) and Financial Self-Sufficiency (FSS).
In addition, the program strengthened participants’ ability to conduct financial trend analysis and budget variance analysis, enabling more informed and strategic decision-making within their institutions.
A key component of the training addressed loan portfolio management, where participants examined portfolio quality indicators such as Portfolio at Risk (PAR), Non-Performing Loans (NPL), recovery rates, and loan loss provisioning. The sessions also explored the root causes of loan delinquency and practical approaches to maintaining a healthy loan portfolio.
Credit Risk Management Focus
The training emphasized early detection and proactive management of credit risk, equipping participants with tools for monitoring loan performance and maintaining portfolio quality. It also introduced practical strategies for preventing delinquency and strengthening loan recovery processes.
A practical case study on portfolio improvement allowed participants to apply the concepts learned and share experiences, reinforcing real-world problem-solving skills.
Overall, the training enhanced the capacity of MFIs to strengthen financial management practices, improve portfolio performance, and achieve long-term sustainability in an increasingly dynamic financial environment.
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