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CGAP Financial Transparency Award
CGAP Financial Transparency Award
The financial transparency annual prize awarded by CGAP is
designed to promote greater transparency in financial reports of
microfinance institutions (MFIs). It promotes optimum
dissemination of audited financial statements in compliance with
financial disclosure standards, both international ones and of
the sector itself. More specifically, the award promotes good
practices in this area by (1) highlighting the main sources of
guidance for good disclosure practices (2)
recognizing MFIs that meet disclosure standards, encouraging
improvements in their annual financial statements. All MFIs
adhered to best practices for disclosure and all participants of
this contest collectively promote the visibility of microfinance
and the understanding of the supplier’s financial performances.
Why is
Financial Transparency Important?
Transparency makes it easier for investors to approach and make
decisions on financial allocation and performance of their
investments. Also, clear and understandable financial reports
help managers make good decisions about their institution’s
administration. Transparency is a key issue for risk assessment
and to make microfinance a more professional business. The
Financial Transparency Award is part of CGAP’s comprehensive
strategy to improve transparency in financial performance of
MFIs, including the Information System Fund
(ISF);
the Rating Fund; and
the MIX.
ASEI has won two honorable mentions in
2004, 2005 and in 2006.
In the years 2006 and 2007 the IDB (Inter-American Development
Bank) recognized ASEI among the best twenty institutions working
micro finances with the lowest loan amounts. During 2006 and
2007, our average loan amount was between US$150.00 and U.S.$
175.00; in 2009 it was $143.
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