Francisco, ManuelaMascaró, YiraMendoza, Juan CarlosYaron, Jacob2012-05-242012-05-242008-02https://hdl.handle.net/10986/6366This paper develops and tests a proposed methodology that puts forward a new integrated method for evaluating the performance of development finance institutions. This methodology applies assessment criteria that take into account both the social objective that the development finance institution addresses and the subsidies it received in order to achieve such an objective. This methodology is applied to two pilot case studies-Banadesa (Honduras) and Banrural (Guatemala). The authors calculate the previously tested subsidy dependence index, which measures the degree of an institution's subsidy dependence. The paper develops and estimates a new measure-the output index- which indicates the level to which the institution fulfills the social objectives of the state. The analysis integrates the subsidy dependence index and the output index to assess the effectiveness associated with meeting the social objective. The findings suggest that the integration of the two indexes can constitute the basis of a meaningful evaluation framework for the performance of development finance institutions. This new methodology can also be a useful metric for policy makers who are seeking to decide on an optimal allocation of scarce funds for development finance institutions that pursue social goals and for management that seeks improved performance outcomes.CC BY 3.0 IGOACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO INFORMATIONACCOUNTINGADMINISTRATIVE COSTADMINISTRATIVE COSTSADVISORY SERVICESAGRICULTURAL ACTIVITIESAGRICULTURAL BANKAGRICULTURAL COOPERATIVESAGRICULTURAL CREDITAGRICULTURAL DEVELOPMENT BANKARREARSAUDITSBANK LENDINGBANK POLICYBANKING INDUSTRYBANKING SERVICESBANKING SYSTEMSBANKSBENEFICIARIESBEST PRACTICESBONDSBORROWERBORROWINGBUSINESS CYCLEBUSINESS PLANBUSINESS SCHOOLCALCULATIONCALCULATIONSCAPITAL ADEQUACYCAPITAL MARKETCAPITAL MARKETSCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKINGCOMMERCIAL BANKSCONSUMERCONSUMER LOANCONSUMER LOANSCONTINGENCYCORRUPTIONCOST OF LOANSCOST OF SUBSIDYCREDIT ALLOCATIONCREDIT CARDCREDIT CONSTRAINTSCREDIT LINESCREDIT PROGRAMSCREDIT RATIONINGCREDIT RISKCREDIT RISKSCREDITORCUSTOMER BASEDEBTORSDELIVERY COSTDELIVERY MECHANISMDEMAND FOR CREDITDEPOSITSDEVELOPMENT BANKDEVELOPMENT BANKSDEVELOPMENT FINANCEDEVELOPMENT FINANCE INSTITUTIONDEVELOPMENT FINANCE INSTITUTIONSDIRECT CREDITDIRECTED CREDITECONOMIC ACTIVITIESECONOMIC COSTECONOMIC GROWTHECONOMIC MANAGEMENTECONOMIC POLICYECONOMIC REFORMECONOMIES OF SCALEEMPLOYEEENTREPRENEURSFARMERSFEDERAL RESERVEFEDERAL RESERVE BANKFINANCESFINANCIAL ADVISORSFINANCIAL COSTSFINANCIAL CRISISFINANCIAL DEPTHFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL PICTUREFINANCIAL PRODUCTFINANCIAL PRODUCTSFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SELF-SUSTAINABILITYFINANCIAL SERVICESFINANCIAL SITUATIONFINANCIAL SKILLSFINANCIAL SUSTAINABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFORM OF CREDITGENDERGOVERNMENT FUNDINGGOVERNMENT INTERVENTIONGOVERNMENT INTERVENTIONSGOVERNMENT OWNERSHIPHOUSEHOLDSHOUSING LOANSINCOMEINCOME GROUPINCOME GROUPSINEQUALITYINFLATIONINFORMATION ASYMMETRYINFORMATION SYSTEMINFORMATION SYSTEMSINTEREST CHARGESINTEREST PAYMENTINTEREST RATEINTEREST RATE CEILINGSINTEREST RATESINTERNATIONAL BANKINVESTMENT CLIMATEINVESTMENT CLIMATE ASSESSMENTINVESTMENT RISKSLACK OF INFORMATIONLAND OWNERSHIPLARGE FIRMSLENDERLENDERSLENDING PORTFOLIOLIQUIDATIONSLOANLOAN PORTFOLIOLOAN PORTFOLIOSLOAN RECOVERYLOAN REPAYMENTLOAN SIZELOAN SIZESLOW INTEREST RATESLOW-INCOMELOW-INCOME BORROWERSLOW-INCOME GROUPLOW-INCOME GROUPSLOW-INCOME INDIVIDUALSLOWER INCOMEMEDIUM ENTERPRISESMERCHANTSMICRO-ENTERPRISESMICROFINANCEMICROFINANCE INSTITUTIONSMICROFINANCE LOANSMINORITY SHAREHOLDERMORAL HAZARDMORTGAGESNET WORTHOPERATING COSTSOPERATIONAL COSTSOPPORTUNITY COSTOTHER ASSETSOUTREACHOUTSTANDING BALANCEOUTSTANDING LOANPARTIAL CREDITPERFORMANCE MEASUREMENTPOOR CLIENTSPRIVATE BANKSPRIVATE FINANCIAL INSTITUTIONSPRIVATIZATIONPRIVATIZATIONSPROFIT MARGINPROFITABILITYPROVISION OF CREDITPUBLIC AWARENESSPUBLIC BANKSPUBLIC DEBTPUBLIC ECONOMICSPUBLIC FUNDSPUBLIC GOODPUBLIC POLICYREGULATORY STANDARDSRELATED COSTRELATED COSTSREPAYMENTRESERVE BANKRESERVE REQUIREMENTRESERVE REQUIREMENTSRESOURCE ALLOCATIONRETAIL BANKRISK PREMIUMRURAL BANKSRURAL FINANCESAVINGS ACCOUNTSELF-SUFFICIENCYSMALL BUSINESSESSMALL FARMERSSOCIAL BANKINGSOCIAL DEVELOPMENTSOCIAL WELFARESUBSIDY COSTSTECHNICAL ASSISTANCETERM CREDITTERMS OF LOANSTOTAL COSTTRANSACTIONTRANSACTION COSTTRANSACTION COSTSTRANSACTIONS COSTSTYPE OF COSTTYPE OF LOANTYPES OF LOANSUNIVERSAL ACCESSUNIVERSAL BANKINGVALUABLEVILLAGEVOLATILE INCOMEVOLUNTARY SAVINGSVOUCHERWELFARE STATEWorld Bank10.1596/1813-9450-4506