Moody's to Develop Social Performance Assessment of Microfinance Institutions.
NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Moody's Corporation announced today that it was recognized at the 2010 Clinton Global Initiative (CGI CGI
in full Common Gateway Interface.
Specification by which a Web server passes data between itself and an application program. Typically, a Web user will make a request of the Web server, which in turn passes the request to a CGI application program. ) Annual Meeting for its commitment to develop a quantitative, independent and globally consistent standard to measure social performance in the microfinance industry.
Investors, philanthropic organizations and lenders echo the need for a common, simplistic sim·plism
The tendency to oversimplify an issue or a problem by ignoring complexities or complications.
[French simplisme, from simple, simple, from Old French; see simple mechanism to determine the social impact of microfinance institutions (MFIs). The creation of an independent and globally consistent standard aims to more clearly differentiate the organizations that are having the greatest social impact through their efforts. As in other market sectors, this would add to the analytic tools available to investors and others, driving a more informed dialogue on MFIs.
"We anticipate that socially-driven microfinance institutions will benefit significantly from this standardized approach to assessing social performance," said Jody Rasch, Senior Vice President, Moody's Investors Service. "It has the potential to drive greater awareness of MFIs that have a positive impact on the lives of millions of people who benefit from projects funded through microfinance lenders."
Working with a consortium of partners, Moody's is conducting a market survey to assess current perceptions of the key factors influencing social performance. A number of market participants, including nonprofit and academic leaders, MFI MFI Microfinance Institution
MFI Money Flow Index
MFI Melt Flow Index
MFI Median Family Income
MFI Malaria Foundation International
MFI Massachusetts Family Institute
MFI Multi-port Fuel Injection (automobile) practitioners and investors, will come together during the Microfinance Impact & Innovation Conference, which is being held on October 21-23, 2010 in New York, where Moody's will present some of the initial responses to the survey. Building on those findings and insight from other market sectors, Moody's will develop a more robust methodology, which can be adopted globally, for assessing the social performance of MFIs.
"Moody's is proud to continue our participation in the Clinton Global Initiative," said Fran Laserson, President of The Moody's Foundation. "CGI has provided a platform to partner with other corporate, academic and nonprofit leaders to contribute to the advancement of microfinance as a sustainable solution to providing much-needed capital to local communities and projects."
ABOUT MOODY'S CORPORATION
Moody's is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Moody's Corporation (NYSE NYSE
See: New York Stock Exchange : MCO MCO Managed care organization, see there ) is the parent company of Moody's Investors Service, which provides credit ratings and research covering debt instruments and securities, and Moody's Analytics, which encompasses the growing array of Moody's non-ratings businesses including risk management software for financial institutions, quantitative credit analysis tools, economic research and data services, data and analytical tools for the structured finance market and training and other professional services. The Corporation, which reported revenue of $1.8 billion in 2009, employs approximately 4,100 people worldwide and maintains a presence in 26 countries. Further information is available at www.moodys.com.
ABOUT THE CLINTON GLOBAL INITIATIVE (CGI)
Established in 2005 by President Bill Clinton, the Clinton Global Initiative (CGI) convenes global leaders to devise and implement innovative solutions to some of the world's most pressing challenges. Since 2005, CGI Annual Meetings have brought together more than 125 current and former heads of state, 15 Nobel Peace Prize The Nobel Peace Prize (Swedish and Norwegian: Nobels fredspris) is the name of one of five Nobel Prizes bequeathed by the Swedish industrialist and inventor Alfred Nobel. laureates, hundreds of leading CEOs, heads of foundations, major philanthropists, directors of the most effective nongovernmental organizations, and prominent members of the media. The CGI community also includes CGI University (CGI U), a forum to engage college students in global citizenship, MyCommitment.org, an online portal where anybody can make a Commitment to Action, and CGI Lead, which engages a select group of young leaders from business, government, and civil society. For more information, visit www.clintonglobalinitiative.org.