Regulatory Alerts2026-08-11
Added · Updated
Socio-Economic Performance Rating Methodology
VIS Credit Rating Company Limited reviews and maintains the fundamental criteria of its Socio-Economic Performance Rating (SIP) methodology for Microfinance Banks and Institutions (MFBIs). The framework evaluates MFBIs against a five-point scale, qualified by plus modifiers, based on six parameters: socio-economic context, governance structure, social trends in portfolio, customer protection, fair treatment and compensation, and balancing financial and social performance. The assessment utilizes quantitative metrics such as portfolio recovery ratios, expense ratios, and operating self-sufficiency, alongside qualitative analysis of board oversight and community impact. Ratings assigned under this methodology are valid until withdrawn and are generally reviewed on an annual basis.