Question 2

a) As a micro finance scholar, explain the following ratios in relation to performance of

micro finance institutions;

i)Borrower per loan officer ratio (3marks)

iii) Loan write oft ratio. ( 3marks)

iii) Cost per active client ratio. (3marks)

b) Micro finance is sometimes described as banking for the poor. What is the rationale behind this?( 3marks)

C) The financial statements of Anomaa microfinance Ltd reveal the following:

Operating revenue=Ghc2340

Total funding expense220

Loan loss provision 300

Total Operatng expense 580

Compute the following onerational selfsufhcieney ratios and interpret your results;

i.)OSS1 (4marks)

ii.) OSS2 (4marks)