PROGRAMS / Technical & advisory support

During the mid and late 1990s, over 200 county-level microfinance projects were set up throughout China. Unfortunately, lack of management skill and poor institutional design have hindered these projects' development. Larger institutions such as cooperatives and banks are also in need of advisory services as they branch into microfinance.


Microfinance Institutions
Considered a "local support center" of PlaNet Finance's global Training & Technical Support programme, PlaNet Finance China aims to contribute to:

  • the consolidation and development of Microfinance Institutions, whether they are NGOs, cooperatives or microfinance programs of banks;
  • the transformation of MFIs into regulated institutions;
  • the creation of new MFIs in some very specific cases;
For example:
In Shaanxi, PlaNet Finance has helped Plan International and the Women's Federation formalize its lending procedures in Jiaxian branch, launch 3 new branches with standardized accounting sytems, and conduct business planning for the future phases of the program.

Microfinance Institutions Networks
PlaNet Finance supports national networks of microfinance in the framework of a partnership program aimed at :
  • providing national networks with training and technical support
  • enabling networks to diversify theirmembership services
  • increasing transparency and
  • promoting the diffusion of information and Best Practices (with the creation of portals and Resource and Training Centers)
To be specific:
In China, PlaNet Finance plays a supporting role to the still-informal China Association for Microfinance. PlaNet attends planning meetings, contributes ideas, and links the CAM to international sources of information. For a period of time, PlaNet Finance China managed the official website (including online database) of the CAM.

Banks and financial institutions
PlaNet Finance provides technical and advisory support to banks and financial institutions :
  • to enable banks to directly serve microentrepreneurs (sometimes called "downscaling" to small and micro-enterprises)
  • to help banks refinance MFIs by enabling them to identify effective microfinance partners and by strengthening these parters
  • by helping them create refinancing tools for the sector (microfinance investment funds, etc)
For example: in China, PlaNet Finance is working with the Harbin City Commercial Bank to expand its micro-lending practice for laid-off workers, and to design and roll-out its rural microfinance program.

Governments
PlaNet Finance's experts support governments in the implementation of poverty alleviation policies by developing microfinance and by:
  • helping them define national strategies for the development of microfinance
  • providing technical support to implement appropriate regulations for the microfinance sector
Upcoming: in China, PlaNet Finance has structured a strategic partnership with the China Banking Regulatory Commission which seeks to reform the collosal system of rural credit cooperatives and also design a new policy for the creation of regulated Microcredit Institutions (MCIs). PlaNet Finance will dialogue with the policy makers and regulators as well as other donor groups.