• Regulation and supervision best practices
• Definition of licensing framework for specialized institutions
• Microfinance institutions (IMF) and microcredit portfolio supervision
• Anti-money laundering and counter finance of terrorism risk-based supervision
• IMF risk rating: Rating Fund I and Rating Fund II
• Second-tier finance schemes, guarantees, and insurance
• IMF strengthening
• IMF Upscaling
• Micro and small companies services

Definition of licensing framework for specialized institutions

In the field of microfinance regulation, our consultants have designed and implemented two of the most successful institutional frameworks in Latin America, the Bolivian “Fondos Financieros Privados” and the Peruvian “Cajas Municipales de Ahorro y Credito,” both as consultants and as supervisors. We have also designed, in these and other countries, legal frameworks, disciplinary regimes and prudential regulations for micro credit operations, including conceptualization, accounting rules, portfolio administration, risk diversification and evaluation, loan documentation, guarantees, and guidelines for internal and external auditing, among others.

Microfinance institutions (IMF) and microcredit portfolio supervision

We have participated (as officers) and assisted (as consultants) in the organization of Superintendencies and of specialized units in charge of supervision of non-bank financial institutions, designed analysis and inspection manuals, and trained examiners and middle managers in classroom and on-the-job settings. In recent years, our innovative, risk-based supervision techniques have been successfully implemented in Bolivia, El Salvador, Honduras, Mexico, Pakistan, Peru, the Philippines, and Uganda. We have also designed and implemented credit bureaus and software for the analysis of micro credit portfolios and consumer loans, both at the institutional and at the systemic level. Likewise, we drafted laws related to privacy and consumer protection in credit reporting.

Anti-money laundering and counter finance of terrorism risk-based supervision

We have developed frameworks, including manuals, for the supervision of AML/CFT risks in microfinance activities, drawing from international guidelines, best practices and taking into account the role of IMFs in promoting financial inclusion.

IMF Risk rating

From 2002 to 2007 ICC administered the Microfinance Rating and Assessment Fund for Latin America and the Caribbean, an initiative promoted by the Inter-American Development Bank (IDB), the Consultative Group to Assist the Poor (CGAP), and the European Union. The fund provided co-financing for 229 ratings between both funds, benefiting 146 IMFs from 17 countries. In February 2009, the Multilateral Investment Fund (MIF) of the Inter-American Development Bank and the Andean Development Corporation (ADC) launched the Rating Fund II, again administered by ICC. The primary objectives of the Rating Fund II are strengthening the MFI rating and assessment market in Latin America and the Caribbean while promoting a better understanding of the benefits and limitations of the different rating services, and improving transparency of MFI financial performance in Latin America and the Caribbean.

Second-tier finance schemes, guarantees and insurance

Evaluation, design and implementation of second-tier finance schemes, crop insurance and guarantee funds geared towards the promotion of rural enterprises and financial institutions specialized in microcredits. Our advice has been focused to ensure long-term sustainability, through the institutional reforms required to promote strong specialized financial institutions in Bolivia, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, and Peru.

The Community of Andean Nations asked us to prepare a feasibility study, including technical and legal requirements, for a proposed Andean Supporting Guarantee Mechanism, to provide second-tier financial guarantees to the following Community members’ national schemes: Bolivia, Colombia, Ecuador, Peru, and Venezuela.

IMF strengthening

ICC provided technical assistance to EDPYME CREAR TACNA S.A. (Tacna, Peru) a credit institution for the development of the small and medium enterprise and the Microcredit Fund of the Nicaraguan Institute of Development, FINDE ONG (Managua, Nicaragua). In EDPYME CREAR TACNA our work included: i) deepening the reach of the institutional diagnosis, ii) reinforcing the current credit processes, and training in-situ of credit analysts and as the result of precedent actions, and iii) designing or adjusting credit products according to the market demand and the necessity of the retention of clients, including innovative services of credit. This project was a six-month accompaniment process culminating midway through 2002. At the beginning of 2008, the BBVA Foundation for Microfinance received permission from the Superintendency of Banking, Insurance and AFP of Peru to acquire CREAR TACNA.

IMF Upscaling

We provided support to FINDE ONG for its transformation into a regulated financial institution FINDESA (June 2000 to October 2002). The consultancy included the following activities executed by a team of multi-disciplined consultants: the elaboration of financial projections to determine the feasibility of constituting FINDE into a regulated financial institution; revision of the operative processes; the relevance of information; elaboration, field training, and implementation of the Manual of organization, positions and functions, the Manual for the internal control system, the internal Regulation for labor relations, the Credit Manual, the Technical guide of credit analysis, and the Manual of Savings and Treasury and Policies for Deposits. Our team also provided support to the directorship of FINDE in informative meetings about the process of the formalization with officials of the Superintendency of Banks and Other Financial Institutions and the Central Bank of Nicaragua. At the end of 2008, FINDESA turned into the Banco del Exito S.A.

Micro and small companies services

In Nicaragua, we designed and implemented a series of diverse programs to foster the development of training and technical assistance services for micro and small enterprises. For this purpose we developed the scheme “Vouchers with information”, including creating and strengthening an Execution Unit, as well as ensuring the successful implementation of every project component. We also provided the IT system that allowed the distribution, assignment, exchange, and control of the program’s vouchers.