fbpx Financial Due Diligence for Financial Intermediaries: Technical Guidance Note | Asian Development Bank

Financial Due Diligence for Financial Intermediaries: Technical Guidance Note

Institutional Document | December 2018

This technical guidance note describes ADB's requirements and good practices for due diligence on financial intermediation loans.

ADB financial intermediation loans are used to further policy reform in the financial and real sectors; strengthen the capacity, governance, and sustainability of participating financial intermediaries; mitigate market distortions; and help increase the efficiency and stability of the respective developing member country financial system. The objective of due diligence is to assess the financial sustainability of financial intermediary and conclude its eligibility for an ADB project, including its financial and risk management capacity.

Contents 

  • About This Publication
  • Executive Summary
  • Introduction and Purpose
  • Policy Requirements
  • Financial Due Diligence and Presentation
  • Institutional Assessment
  • Financial Performance Assessment
  • Covenants
  • Assessing Microfinance Institutions
  • Appendixes