FORMING THE LIST OF CRITERIA FOR EVALUATING ACTIVITY OF A MICROFINANCE ORGANIZATION BASED ON ANALYSIS OF FACTORS IN LIFE QUALITY MODELS

Abstract

At present, microfinance lending has become an integral part of the financial sector in most countries of the world. Microfinancial organizations have many achievements in this area, because they provide a greater number of potential clients with documenting services than banks. Microfinance as a form of bank crediting was originally formed for solving an important social problem - improving quality of life for the population of poor countries. Today the working experience of microfinancial organizations in Russia shows that the purpose of these organizations primarily is obtaining commercial profit by providing microfinancial services for the people, as well as for small and medium businesses. There appear problems of interrelations between a greater part of population and microfinancial organizations. In terms of the state, the system of microfinancing can be regarded and project into society as a social and economic program. To evaluate the results of activity and efficiency results of microfinancial organizations there have been chosen criteria corresponding to those of life quality of the people. There have been considered methods of modernization of present models of analysis of life quality in order to evaluate the efficiency of microfinancial system in terms of the state interests. More than ten assessment models of life quality (ILI index, R. Veenhoven’s indicator of happy life expectance, Dutch labour cost index, Rogerson model, Maslow hierarchy model, Murdie model, Raphael model, etc.) have been determined, their weak and strong points have been stated in terms of their potential transforming possibilities. It has been stated that from some of these models it is possible to choose certain factors and to transform into indicators of assessment of efficiency of functioning the microcredit system.