Diploma in Micro Finance

Programme Structure

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Course Units and Syllabus

Semester – I

DMF 1131: Principles of microfinance
DMF 1132: Accounting for Micro finance.
DMF 1133: Delinquency and Credit Risk Analysis
DMF 1134: Legal Environment of Micro finance
DMF 1135: Management Information system for microfinance Institutions.
DMF 1136: Research Methodology

Semester – II

DMF 1231: Managing Peoples of MFIs
 DMF 1232Business Statistics
DMF 1233 Ethics and Good Governance of MFI
DMF 1234:  Product Development and Operational Risk Management
DMF 1235: Business Planning
DMF 1236 Performance Evaluation of MFI
DMF 1247 Project report

Detailed Syllabus

  • First Semester
  • Second Semester

  1. DMF 1131: Principles of microfinance.

Objectives

Students should be able to:

  • Explain the micro finance and its functions
  • Describe the basis of Micro finance
  • Explain the methods of measurements

Basic introduction, key principles of micro finance, micro finance and economic development: financial intermediation restricted access to financial services, The financial needs of the poor; financial systems development, the basis of MF, Group based MF, MF for individual clients, market strategies for MFIs, management of MFIs, Savings mobilization, credit management, sustainability of MFIs, Measuring financial performance, measuring social performance MF in challenging environment, recent trends in MF

 

  1. DMF 1132: Accounting for Micro finance.

Objectives

Students should be able to:

  • Describe basis of Micro finance accounting system
  • Explain the tools of Micro finance Accounting
  • Describe the Accounting standards for Sri Lankan MFI’s

Financial reporting, accounting system. Transactions and accounts, Accounting rules, accrual and cash accounting, accounting cycle, documenting transactions. General journal, general ledger, bank reconciliation, trial balance, adjusting for loan loss provision and write-offs, Adjusting for depreciation, adjusting for accruals, closing entries, Income statement, balance sheet, cash flow statement, fund accounting, Accounting standards and accounting practices in Sri Lankan MFI’s

 

  1. DMF 1133: Delinquency and Credit Risk Analysis

      Objectives

Students should be able to:

  • Explain risk in Micro Finance
  • Describe the credit portfolio
  • Describe risk management strategies
  • Explain the characteristics of delinquency
  • Handle the delinquency problems
  • Describe the methodology and information system to manage delinquency

 

Characteristics of Micro Borrower, Micro credit risk, Micro credit analysis, loan application, site visit, character assessment, business assessment, financial analysis, preparing and analysis of balance sheet and income statement, loan conditions, credit scoring, credit decision, credit administration, loan monitoring credit policy, incentives schemes, loan risk, risk management strategies. Delinquency and default, causes of delinquency, cost of delinquency repayment rate, measuring portfolio quality.  Measuring loan losses managing delinquency problems managing a delinquency crisis, preventing delinquency, zero tolerance credit methodology and information systems.

  1. DMF 1134: Legal Environment of Micro finance

Objectives

Students should be able to:

  • Describe legal aspects related to Micro Finance
  • Explain the regulation necessary to credit management

Business law and its implications for loan appraisal business & registrations, loan contracts credit securities, loan gore closure regulation and supervision prudential and non – prudential  regulation, self – regulation self – regulation of MFIs

  1. DMF 1135: Management Information system for microfinance Institutions.

Objectives

Students should be able to:

  • Describe the information systems in MFIs.
  • Explain the security related information systems in MFIs
  • Apply the information system for decision making in MFIs

Introduction, information systems in a MFI, core banking systems in MFI, Data centre, connectivity technologies,  Data base connectivity, reporting, CGAP report templates, system development, information security, Fraud and the mitigation of fraud, Business impact assessment, electronic payment systems, mobile  banking.

  1. DMF 1136: Research Methodology

Objectives

Students should be able to:

  • Explain the importance of research
  • Define the research problem
  • Explain different types of research
  • Explain data collection methods

Introduction, Defining the research problems and developing approach; research design, Explanatory and research design; Data Collection, preparation and analysis, Report presentation and presentation

 

  1. DMF 1231: Managing Peoples of MFIs

Objective

Students should be able to:

  • Describe the principles of Management
  • Explain the Functions of Management
  • Explain Management Techniques related to MFI
  • Explain the Human Resource Management

Definition of management, Importance of management, Levels of Management, Development of management thoughts, Functions of management: Planning, organizing, Co-ordination, Control Directing. Introduction to Human Resource Management, Motivation, and Leadership: Leaders and managers, leading change. Communication, change management, team management, problem solving, Time management, human resource management strategy and policies, Decision making job description, Compensation

 

  1. DMF 1232Business Statistics

Objectives

  • Explain the sampling techniques
  • Describe the different data collection and presentation
  • Explain the probability
  • Explain hypothesis testing

Sampling methods, data collection and presentation, frequency distribution, correlation and regression, product movement and correlation rank correlation and co-efficient, liner regression, time series analysis, methods of forecasting, probability and probability distribution, evaluation of the reliability of estimates and significance of change, statistical inference, confidence interval and hypothesis testing.

  1. DMF 1233 Ethics and Good Governance of MFI

Objectives

Students should be able to:

  • Describe ethics and good governance of MFI
  • Describe fiduciary responsibility of MFIs ,board of directors
  • Explain the role of responsibilities of directors and board

The concept of Governance, governance of MFIs, fiduciary responsibility  of MFIs,  board of directors, roles of responsibility of board of directors, duties of the Directors, governance by the board, role of government

  1. DMF 1234: Product Development and Operational Risk Management.

Objectives

Students should be able to:

  • identify the characteristics of the products
  • Explain 8 Ps and operational risk
  • determine the product price

MF products, characteristics of financial products, new product and refined product, 8Ps – the mix, product development process, success factors, check list, market research, product innovations, and product pricing cost allocation.

  1. DMF 1235: Business Planning

Objectives

Students should be able to:

  • Explain the phases in the development of business plan
  • Analyse the financial position and forecast the future financial needs.
  • Develop a business plan

Introduction to business planning, Introduction to case study and strategic planning, markets and clients, market segmentation and potential, strategic implication of mission, markets and client analysis, environmental analysis,   institutional assessment, financial statements analysis and performance indicators.

  1. DMF 1236 Performance Evaluation of MFI

Objectives

Students should be able to:

  • Describe the portfolio quality
  • Describe the different types of ratios
  • Evaluate the performance of MFI and repaying capacity of the customers

Introduction, Portfolio quality  – Important, Productivity and efficiencies ratio, Financial viability, Profitability Ratio, Leverage & Capital adequacy Standard, Performance standard and variation.

  1. DMF 1247 Project report

 

Lecture Time Table Click Here!