BANCOSOL: THE CHALLENGE OF GROWTH FOR MICROFINANCE ORGANIZATIONS

This paper focuses on the difficulties inherent in the prudent management of growth of microfinance organizations and on potential limits to the increased efficiency, profitability, and sustainability expected from growth and large size. The paper addresses both positive and negative implications of rapid growth for microfinance organizations. The experience of BancoSol in Bolivia is used to illustrate these questions. Building upon the successful experience of PRODEM, BancoSol was chartered as a private commercial bank in 1992. The paper discusses the intangible assets inherited from PRODEM that gave BancoSol a head start and the additional advantages that resulted from formalization as a bank, in particular from the authorization to mobilize deposits. BancoSol shows outstanding success in terms of breadth, depth, and quality of outreach and in terms of sustainability. It is the microfinance organization with the largest number of clients in Latin America and it reaches poor clients who could never expect to gain access to conventional financial institutions. The paper discusses the incentive structure associated with a lending technology that has resulted in low loan arrears and the cost- effective supply of small loans. Success is explained by a strong concern with financial viability, development of a lending technology appropriate for the market niche, a long learning period, and upgrading into a formal intermediary. As it grew, BancoSol had to face a reduction of revenues as a proportion of productive assets and an increase in the average cost of funds, which combined reduced its operating margin by 13 percentage points. This challenge was fully met by reducing operating expenses as a proportion of productive assets. While growth of PRODEM had been mostly constrained by too rigid access to donor funds, growth of BancoSol has been constrained by threats on asset quality and by diminishing marginal economies of size. Portfolio efficiency has grown steadily. This growth has been the net outcome, however, of reductions in transactions efficiency and of increases in average loan size after transformation into BancoSol. The paper explores the sources of increases in average loan size and it concludes that mission drift has not occurred at BancoSol, which continues to focus on small loans to microentrepreneurs. The evolution in transactions efficiency is related, in turn, to sources of extensive (installed capacity) and intensive (productivity) growth. Extensive growth has been rapid at BancoSol and it tends to dampen productivity increases. Finally, the paper reviews the pressures from growth on the original informal culture of the organization and the gradual establishment of more formal structures.Agricultural Finance,

MICROCREDIT AND THE POOREST OF THE POOR: THEORY AND EVIDENCE FROM BOLIVIA

We construct a theoretical framework that puts the social worth of a microfinance organization (MFO) in terms of the depth, worth to users, cost to users, breadth, length, and scope of its output. We then analyze evidence of depth of outreach for five MFOs in Bolivia. Most of the poor households reached by the MFOs were near the poverty line�they were the richest of the poor. Group lenders had more depth of outreach than individual lenders. The urban poorest were more likely to be borrowers, but rural borrowers were more likely to be among the poorest.Financial Economics, Food Security and Poverty,

Microfinance Market Niches and Client Profiles in Bolivia

This paper presents and interprets descriptive statistics generated from data obtained in a survey of clients of five microfinance organizations believed to be among the best in Bolivia. These lenders represent different combinations of organizational design, lending technology, and market area of operations. Two are regulated financial intermediaries and three are NGOs. Two operate in rural areas (PRODEM and Sartawi) and three operate in urban areas (BancoSol, FIE, and Caja Los Andes). Two offer individual loans and three grant loans through joint liability groups. The paper discusses household-enterprise profiles of a sample of 622 clients and identifies terms and conditions of loan contracts with these organizations to evaluate the depth and quality of their outreach.Marketing,segmentation,Bolivia,competition,microfinance

Análisis simultáneo de aflatoxinas y ocratoxina A en compost por HPLC-MS

Las aflatoxinas y ocratoxina A son las micotoxinas más estudiadas debido a su elevada toxicidad y amplia distribución. En este trabajo se describe un método de análisis simultáneo de las aflatoxinas B1, B2, G1, G2 y la ocratoxina A en compost por HPLC-MS. El método consiste en una extracción de las toxinas con MeOH:H 2O, posterior purificación de la muestra con cartuchos de extracción en fase sólida y posterior análisis cromatográfico en 18 minutos utilizando una columna XTerra (2.1x100mm, 3.5mm). En este trabajo se demuestra que no hay presencia de las toxinas de interes a concentraciones superiores a 0,2mg/kg

MICROFINANCE MARKET NICHES AND CLIENT PROFILES IN BOLIVIA

This paper presents and interprets descriptive statistics generated from data obtained in a survey of clients of five microfinance organizations believed to be among the best in Bolivia. These lenders represent different combinations of organizational design, lending technology, and market area of operations. Two are regulated financial intermediaries and three are NGOs. Two operate in rural areas (PRODEM and Sartawi) and three operate in urban areas (BancoSol, FIE, and Caja Los Andes). Two offer individual loans and three grant loans through joint liability groups. The paper discusses household-enterprise profiles of a sample of 622 clients and identifies terms and conditions of loan contracts with these organizations to evaluate the depth and quality of their outreach. The interpretation seeks to establish connections between key characteristics of the clients and features of the lending technologies that lead to the matching of classes of borrowers with particular organizations and that influence the choice of market niches. Data on loan sizes suggest the existence of different but broadly overlapping market niches associated with three tiers of clients. The sharpest distinction is between urban and rural clients. The matching between clients and organizations also reflects a weak but positive correlation between levels of poverty and loan sizes. According to an index of basic needs fulfillment of their clients, these organizations can be ranked as: FIE and Caja Los Andes (first tier), BancoSol (second tier), and PRODEM and Sartawi (third tier). The same ranking is obtained when clients are ordered according to loan size, the ratio of loan size to the value of sales, and the value of monthly sales. The three tiers of clients are associated with different socio-economic features of their household-enterprises: sex, education, household size, access to electricity, water supplies, and sewage facilities, employment-generating capacity of the enterprise, informality and separation of household and enterprise, occupations and the like. The development of lending technologies that do not rely on standard financial statements and collateralizable assets is a formidable innovation that explains the outreach and sustainability of these organizations. Differences in the guarantees required for loans dominate distinctions in lending technology. Trade-offs between loan size, interest rates, and guarantee requirements attract different subsets of the clientele. Joint liability seems to be appropriate for very poor people, but group borrowers eventually outgrow this relationship. Caja Los Andes and FIE have shown that it is possible to supply individual loans to poor people and be profitable. Most clients are satisfied with the services received. The lowest satisfaction concerns loan sizes and loan-size rationing may be widespread. At least in urban areas, increasing competition will force these organizations to improve their services and adjust loan sizes. All of these organizations are expanding the frontier of microfinance by developing lending technologies for a much poorer clientele than is reached by collateral-based lenders. This is a formidable achievement.Financial Economics,

Poverty and Microfinance in Bolivia

A major accomplishment of development finance in recent years has been the expansion of the supply of financial services for the poor. Little information exists, however, about the extent to which microfinance actually reaches the poor. This study analyzed a sample of clients served by five microfinance organizations in Bolivia. The data revealed that these organizations reach many rural and urban poor, but not the poorest of the poor. Group-based lenders reach a somewhat poorer clientele than those organizations making individual loans. The individual lenders, however, seem to be able to better adjust loan sizes to fit the creditworthiness of the client. Therefore, individual lenders appear to face fewer constraints in increasing loan sizes in response to client demand. The ability of these organizations to adjust to loan demand may be important in influencing their ability to retain clients as competition among organizations increases

Can a Wi-Fi WLAN support a first person shooter?

In corporate and commercial environments, the deployment of a set of coordinated Wi-Fi APs is becoming a common solution to provide Internet coverage to moving users. In these scenarios, real-time services as online games can also be present. This paper presents a set of experiments developed in a test scenario where an end device moves between different APs while generating game traffic. A WLAN solution based on virtual APs is used, in order to make the handoffs transparent for Layer 3. The results show that it is possible to maintain an acceptable level of subjective quality during the handoff. At the same time, it is set clear that the fact of having a gamer in an AP could be taken into account by radio resource management algorithms, in order to provide a better quality

Polarized cortical tension drives zebrafish epiboly movements

The principles underlying the biomechanics of morphogenesis are largely unknown. Epiboly is an essential embryonic event in which three tissues coordinate to direct the expansion of the blastoderm. How and where forces are generated during epiboly, and how these are globally coupled remains elusive. Here we developed a method, hydrodynamic regression (HR), to infer 3D pressure fields, mechanical power, and cortical surface tension profiles. HR is based on velocity measurements retrieved from 2D+T microscopy and their hydrodynamic modeling. We applied HR to identify biomechanically active structures and changes in cortex local tension during epiboly in zebrafish. Based on our results, we propose a novel physical description for epiboly, where tissue movements are directed by a polarized gradient of cortical tension. We found that this gradient relies on local contractile forces at the cortex, differences in elastic properties between cortex components and the passive transmission of forces within the yolk cell. All in all, our work identifies a novel way to physically regulate concerted cellular movements that might be instrumental for the mechanical control of many morphogenetic processes.Peer ReviewedPostprint (author's final draft