Catalog

	Table of Contents
p. 115 of 203 BACK | NEXT Foreword 1. Introduction to the Guidelines 2. User Instructions 3. Preparing and Appraising Investment Project 4. Financial Management of Executing Agencies 5. Reporting and Auditing 6. Financial Institutions 6.1. Introduction and Overview 6.2. Reviewing FI Financial Management 6.3. FI Investments 6.4. Assessing FI Performance 6.4.1. Introduction 6.4.2. Assessing Microfinance Institutions 6.4.3. Applying the CAMEL Framework 6.4.4. Assessing FI Risks 6.4.5. Determining FI Credit Ratings 6.4.6. Specialized FI Internal Controls 6.5. Appraisal Checklist 6.6. FI Reporting and Auditing Issues 7. Knowledge Management

Financial Management and Analysis of Projects : 6. Financial Institutions : 6.4. Assessing FI Performance

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6.4.2. Assessing Microfinance Institutions

6.4.2.1. The World Council of Credit Unions (WOCCU) recommends a set of financial ratios covering Protection, Effective financial structure, Asset quality, Rates of return and costs, and Liquidity and Signs of growth (PEARLS) to monitor the financial stability of Credit Unions, including MFIs. The PEARLS methodology is specifically designed for evaluating credit unions and addresses shortcomings of the CAMEL system in this respect.

6.4.2.2. Further information on the PEARLS methodology can be found in the Knowledge Management section of the web-based Guidelines and at www.woccu.org.*

*The ADB website provides links to external websites that are not under its control. ADB is not responsible for the content of these sites.

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