A new look at microfinance apexes

This paper uses the shorthand term 'microfinance' to refer to financial services for low-income people. Apex facilities exist for other sectors besides microfinance for instance, lending to exporters or small and medium enterprises (SMEs). However, since this paper is limited to microfinance; 'apex' here generally refers only to microfinance apexes. This paper does not cover federations of retail cooperatives or credit unions, even though they sometimes play a refinancing role. Such federations often provide management or supervision in addition to finance and, therefore, tend to involve distinctive operational issues. Finally, some people call associations of microfinance retailers 'apexes,' but these have no refinancing role and thus fall outside the scope of this paper. This paper is organized into three parts: the first section offers a global picture of microfinance apex operations, including their size, trends, and characteristics. It draws primarily on the 2010 survey of 23 major apexes, but also includes some results from the broader mapping done in 2008. The second section highlights key issues from across the six case studies. The third section offers conclusions and recommendations about maximizing the chances for apex success. It draws not only from the specific research conducted for this paper, but also from Consultative Group to Assist the Poorest (CGAP's) 17 years of experience with (and publications regarding) the operations of development funding agencies.