The set of indicators selected for this research was the product of that work and comprises four evaluation areas: assets quality,
operational efficiency, financial management and profitability. The transposition for the Brazilian scenario was possible thanks to
the availability of COSIF data offered by Banco Central do Brasil. (BACEN)
A comparison to Latin American MIFs showed that SCMs performances were inferior in all studied areas: its assets feature higher
risk; operational efficiency is lower; its borrowing capacity is much lower; and, although there are conditions for raising more
revenues, profitability ratios are not as significant as its international rivals, which is partially explained for the fact that local
institutions are much smaller and recent.
Brazil counts on Latin American’s broadest microcredit market, but it is not adequately exploring its enormous potential. The
scenario observed does not seem much promising and, when compared to its neighbors, that is not favorable at all for bringing
international investments to the sector.
For the past years, Brazil put a lot of effort to grant access to financial services for the low-income population. But, since 2003,
the Brazilian government strategy was directed to the popularization of banking services, associating credit to other banking
services for the low-income population, provided through the traditional banking system, and at the cost of high incentives, but
SCMs received little attention.
Changes in microcredit financing governmental strategies led SCMs to fund their growth with their own resources. Even though it
guarantees its operations continuity and growth, such public strategy restricts the growth speed and does not explore the
possibility of leverage over net equity.
The SCMs are responsible for improving their operational processes and controlling systems, in order to reach international
excellence standards, and for investing in their financial statements publication, hiring rating agencies and participating of
international benchmarks, like their Latin American neighbors.
Obviously, Brazilian SCMs are still new and need time to consolidate as a possible business model, aligned to microcredit
objectives. However, the shortage of resources so far obtained for financing operations represent a large limitation for growth and
a barrier to the entrance of new institutions. (Monteiro, 2005)
For the SCMs to play a role equivalent to NBFIs' in their respective countries, and bring more entrepreneurs and private investors
to microcredit, it is necessary to create an attractive and stimulating scenario, favoring capital and technology injection, and
offering good return perspectives on a long-term basis.
Government has been performing the function of regulating microcredit and stimulating the participation of commercial banks in
the sector. However, the Government, in this initial phase, could also create conditions for the expansion of SCMs by providing
capital, authorizing deposits, and stimulating the entrance of international institutions through the establishment of a better
14
Convention