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  • Cambodia’s MFI sector is one of the best performing globally, with high ROE, strong growth, high transparency, and a pro-poor approach. 
  • MFI interest rates are fair and reasonable, and at the low end globally. 
  • Credit losses are well below the global average, contributing to the high ROE. 
  • The top eight account for 90% of the sector. PRASAC is the standout performer financially with an ROE of nearly 40%, followed by TPC. 
  • We believe a key factor in the success of the best performing MFIs is having a combination of shareholders from both the NGO and Development Finance Institution sector as well as from the Private Sector.

The MFI sector in Cambodia is one of the best performing MFI sectors globally, delivering high returns (22% ROE) and high growth (48% loan growth) in 2013. It has significantly outperformed the bank sector in Cambodia in terms of growth and returns. It has achieved this while charging interest rates that are towards the low end of the spectrum for MFIs globally, with a level of transparency and a pro-poor approach that is amongst the best in the world. It has significantly increased financial inclusion, and nearly 90% of MFI lending is outside of Phnom Penh.

The Goldilocks Conundrum: 
Are MFI Returns in Cambodia Too High, Too Low or About Right?