DIG conducts financial sector and policy reviews in a variety of global contexts to assess the current state of the environments in which microfinance and finance institutions operate. These reviews inform the institutions and thereby enable them to take positive strides towards operational efficiency and effectively expanding their services.
Detailed Descriptions of these projects are located below:
Consumer Protection and Financial Literacy in the West Bank (2009): The Expanded and Sustained Access to Financial Services program (ESAF) supports USAID
in its efforts to build a more inclusive financial sector that increases the sustainable access to financial services for Palestinian households and micro, small and medium enterprises (MSMEs). As the program’s implementing agency, the Academy for Educational Development (AED) contracted DIG to conduct an assessment on the state of consumer protection and financial literacy in the West Bank. Through extensive research and focus groups, DIG evaluated how the current state compared to international best practices as delineated by the World Bank. It further made recommendations for addressing the increasing demand for credit in the West Bank and prioritizing follow-up activities for regulatory bodies, industry associations, and other consumer and financial protection literacy stakeholders.
Diagnostic on the Legal and Regulatory Environment for Microfinance in Lebanon (2007): As part of CGAP’s MENA Initiative, a series of diagnostic exercises were conducted in Lebanon to support inclusive financial sectors in MENA countries. DIG worked with DAI to conduct a review of the microfinance sector in Lebanon, investigating the current legal and regulatory framework for microfinance activities and examining government plans and donor support programs to scale up microfinance services. DIG and DAI formulated recommendations for a coordinated and effective donor support program to scale up microfinance in the country.
IFAD Strategy for Rural Finance in the NENA region (2006-2007): Through a contract with the International Fund for Agricultural Development (IFAD), DIG devised the rural finance strategy for IFAD’s Near East and Northern Africa region (NENA). The strategy will shape and strengthen IFAD’s impact and the sustainability of its interventions in the rural financial sector.
Diagnostic on the Legal and Regulatory Environment for Microfinance in Syria and Microfinance Sector Review (2006): DIG conducted a policy diagnostic study in Syria to assist CGAP in its plans to develop a coordinated and effective multi-donor program to bolster the government’s plan to scale up microfinance services. The study consisted of assessing the microfinance sector, investigating the current legal and regulatory framework for microfinance activities in Syria, and reviewing the government’s and donors’ plans to scale up microfinance services. The project also included analyzing and making recommendations to the Syrian government on The General Microfinance Decree number 15 and its related Executive Instructions.
Identification of Appropriate Financing Instruments and Technical Assistance to Further Support the Microfinance Sector in Egypt, Gaza and the West Bank, Jordan, Lebanon and Syria (2006): Funded by the European Investment Bank, DIG led a microfinance sector study to identify appropriate financing instruments and technical assistance to support the microfinance sector in Egypt, Gaza and the West Bank, Jordan, Lebanon and Syria.
Microfinance Guarantee Facilities Suitable for Housing and Community Investments: Trends and Lessons Learned (2005): DIG conducted an in-depth, international study for the World Bank’s Financial Sector Operations and Policy Department. The purpose was to present a framework for understanding the workings of microfinance guarantee facilities, especially guarantees that can be applied to housing microfinance and to infrastructure and community investments in less developed countries. The study’s objectives were to: (1) outline a rationale for using guarantee facilities as an alternative to more traditional forms of microfinance loan portfolio financing; (2) discuss the basic principles underlying the design of existing microfinance guarantee facilities; and (3) develop a standard framework for understanding the mechanics of a successful guarantee facility, focusing notably on risk analysis, pricing, and contracts structuring. The final report produced is intended to help stimulate institutional thinking at the Bank regarding the establishment of guarantee facilities, both at the global level and in specific country settings.