Defining and Mapping Tier 2 & 3 MFIs
LMDF contributes to work of the European Microfinance Platform’s Action Group
Investors in smaller microfinance institutions, among them LMDF, collaborate since 2011 in an Action Group facilitated by the European Microfinance Platform (e-MFP). Together with MicroRate, the group developed a common definition of MFI tiers in order to improve transparency around young and emerging microfinance institutions.
The collaboration resulted in a definition of tiers based on three dimensions: size, sustainability and transparency. A recent Microfinance Voices blog explains why this research is important and what can we learn from knowing MFI tiers better.