International Best Practice and Transparency

From the outset, MBK has committed itself to meeting international best practice in operational management, financial management and reporting. With a focused approach, tailor-made staff development, detailed operations manuals, regular field monitoring and supervision, internal and external audits, and computerized portfolio management and accounting systems, MBK wants to ensure that operations grow smoothly, rapidly, transparently and efficiently.

In view of its highly transparent procedures and reporting, MIXMarket, the global information exchange for the microfinance industry – operated by the Consultative Group to Assist the Poor (CGAP) of the World Bank– granted five diamonds to this institution in September 2005. Moreover, MBK was featured as five-diamond MFI of the month in MIXMarket in October 2006. M-CRIL, the world’s best-known credit rating agency for the microfinance industry, awarded an alpha (a) investment grade to this institution in August 2006 and again in February 2008 for its performance to date.

MBK is Ruby Sponsor of Micro Finance Transparency International

MF Transparency is a global initiative for fair and transparent pricing in the microfinance industry. It is the venue for the microfinance industry to publicly demonstrate its commitment to pricing transparency, integrity and poverty alleviation. Its vision is a microfinance industry operating with healthy free market conditions where consumers and other stakeholders can make informed decisions.

MBK Endorses Smart Campaign, Centre for Financial Inclusion, ACCION International

Financial services have the power to help people improve their lives, sometimes dramatically so. However, if offered carelessly or used improperly, financial services – especially credit – can also cause harm. The Smart Campaign seeks to unite microfinance providers worldwide to develop and implement standards for the appropriate treatment of low-income clients based on six principles.

The overall objective of the Campaign is for these principles to become embedded within the fabric of the microfinance community and for microfinance to be recognized as a strongly pro-consumer industry. Over the last year, a consensus has emerged around six principles that would comprise the industry’s commitment to client protection:

1. Avoidance of over-indebtedness
2. Transparent pricing
3. Appropriate collection practices
4. Ethical staff behaviour
5. Mechanisms for redress of grievances
6. Privacy of client data

Social Performance Standards Reporting, MIXMarket (CGAP/World Bank)

MBK reports regularly to the MIXMarket using the Social Performance Standards Reporting format.