|||**Tab**|**le 5. Key Risk M**|**anagement Fa**|**ctors and Indic**|**ators**||||
|---|---|---|---|---|---|---|---|---|---|
||**MFIs Usi**<br>NGOs and M|i<br>l _**Ca**<br>**A**<br>**ng Other Peop**<br>**Non-Profit NG**<br>FIs with Limited<br>____________|**tezgory**<br> <br>**les' money:**<br>**Os,**<br>Deposit Taking<br>._____.|**|Category**<br>**MFIs U**<br>Saving|**B**<br>**sing Members**<br>Credit Unions;<br>s & Credit Coop<br>_|**' Money:**<br> <br>eratives<br>.___|**MFIs U**<br>Special<br>License<br>Non-B|**Category**<br>**sing the Publi**<br>ized/Limited Eq<br>d Mutual-Own<br>ank Financial I|C<br>**c's Money:**<br>uity Banks;<br>ership Banks<br>nstitutions|
|Risk Management Factors<br>and Indicators|Range of<br>Observed<br>Values|Suggested<br>Thresholds<br>for Internal<br>Governance|Suggested<br>Guidelines for<br>External Self-<br> <br>Regulatory<br>Sody$|Range of<br>Observed<br>Values|Suggested<br>Thresholds<br>for Internal<br>Governance|Suggested<br>Guidelines<br>for External<br> <br>Regulation|<br>Range of<br>Observed<br> <br>Values<br>|Suggested<br>Thresholds<br>for Internal<br>Governance|Suggested<br> <br>Guidelines for<br>External<br> <br>Regulation /<br>rvso|
|1.**Balance Sheet Structure**||||||||||
|Earning assets:||||||||||
|Loans as % of ave. assets|55-75%|65-70%|65-70%|60-70%|70-80%|70-80%|65-80%|70-80%|none required|
|Non-performing<br>loans as %<br>of total loan portfolio|2-10%|< 5%|5-10%|7-10%|< 5%|< 5%|1.5-6.5%|< 5%|5-10%|
|Non-earning assets:||||||||||
|Fixed assets as % of<br>capital|not available|<br>**• 5**%|none required|<br>20-25%|•5%|5-10%|not available|• 20%|• 25%|
|Funding liabilities as %<br>of total capital:||||||||||
|Wholesale deposits<br>& borrowings|not available|<br>< 100%|•100 %|1-3%|0%<br>|0%|not available|s 150%|150%|
|<br>Retail public or members'<br>deposits|not available|< 100%|< 100%|145-180%|Ž 250%|250 %|not available|• 300%|300%|
|II.**Capital Adequacy**||||||||||
|Risk-weighted assets : capital|1.5-3 X|•3X|3 X|2.5-3.5 X|•4X|3-5 X|5-20 X|•5-6.5 X|6-8 X|
|Total liabilities : capital|not available|not available|<br>2 X|2-3 X|< 3.5 X|3.5 X|not available|< 8 X|<8 X|
|% of current earnings retained|not available|build up capita|l build up capital|not available|build up capita|l build up Cap.|not available|build up Res.|<br>build up Res.|
|Institutional capital / required<br>minimum capital-|not available ||<br>100%|> 100%|not available|not applicable|not applicable|not available|> 100%<br>||<br>100%|
|Ill.**Liquidity Risk**||||||||||
|10 largest depositors /funders<br>as % of total deposits/funds|not available|• 25%|none required<br>I_I|not applicable|not applicable|not applicable<br>|not available<br>I|s 10%|none required|
|<br>Volatile funds as % of<br>total deposits/borrowings|not available|0|<br>none required<br>|0%<br>|0%|0%|not available<br>_|s 10%<br>_|none required<br>____I_I_I_i_i_<br>I|
|<br>Cash + deposits + short-term<br>investments as%of deposits/<br> <br>bborrowings_|not available<br>I<br> <br>_<br>_|25%<br> <br>I<br> <br>_<br>_|j<br>25%<br> <br>i<br> <br>_<br>_I|I<br>10%<br>I<br>_[|j<br>10-15%<br>I<br> <br>_I|20%<br> <br>I<br> <br>_[_I[,1|j not available<br>i<br>I|25%<br> <br> <br>.||<br>20%<br>_I|

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