Building Microfinance Associations: Goals, Implementation and Policy Implications

With increasing emphasis being placed on professionalism and a self-sustaining financial model, microfinance institutions are joining forces in national associations. This research explores the stated goals of these associations and the challenges they face in implementation, through content analysis and case studies of Sri Lanka and Nepal. It finds that microfinance associations are not focused solely on representing and advocating for the interests of their members. Rather, this function is often combined or even overshadowed by important capacity building services. In some cases, associations are even filling gaps in formal regulatory oversight. At the same time, they face challenges of institutionalization and heterogeneous membership.