The Centre for Excellence in Financial Inclusion
Papua New Guinea

Financial Inclusion : Principles and Standards

CEFI recognises the importance of upholding accepted industry standards in the development of financial inclusion. This will ensure strong, positive growth, and will also give financial industry stakeholders confidence in their ongoing support of our goals. Together, CEFI and MEP (Microfinance Expansion Project) work to advocate microfinance industry standards in line with CEFI’s core values of Quality, Transparency and Equity (QTE).


CEFI’s Partner Financial Institutions (PFIs) use ten performance indicators to monitor and assess their ongoing performance and ensure their quality. These indicators have been jointly agreed upon by CEFI, MEP and the PFIs.


Ten Performance Indicators

Indicator  Description 
1 Growth in Client Base
2 Gender Segregation (%)
3 Average Saving per Account
4 PAR>30 days
5 Client to Staff ratio
6 Operating Expense ratio
7 Loan/Deposit ratio
8 Financial Self-Sufficiency
9 Return on Equity
10 Return on Assets


CEFI is negotiating with the Microfinance Information Exchange (the Mix Market) to enable PFIs to report their results to the Mix Market over the next four years. This reporting will ensure transparency in the growth of financial inclusion. It will also give stakeholders a microfinance industry-accepted platform for transparent reporting and analysis of financial, operational and social performance results, with associated calculation of indicators and benchmarks.

We are also encouraging PFIs to join PNG’s Credit Data Bureau (CDB) which has an extensive archive of consumer and company credit histories. Submitting to and accessing CDB data improves industry transparency, and also strengthens PFI’s lending controls.

CEFI is investigating platforms to better report consumer financial inclusion data, as well as supply-side performance. The collection and sharing of data assists research, analysis, debate and policy-making. It ultimately builds a healthy, well-informed, enabling environment. An additional future option is to establish a public-facing financial inclusion data-sharing portal through the online platform, Finclusionlab, an initiative of the Mix Market.


CEFI strongly advocates consumer protection and gender equity in the growth of financial inclusion. The G20 Leaders’ Declaration in 2012 highlighted the importance of improving financial consumer protection, and the Asian Development Bank called for increased consumer protection support to make microfinance more consumer-oriented.

We encourage PFIs to gain certification with the “Smart Campaign”, a global consumer protection movement with microfinance members in nations around the world. We are educating and advocating for the adoption of Smart Campaign’s Client Protection Principles (CPPs) in PNG. The CPPs highlight the importance of gender equity, which is a priority issue for CEFI. The equal access of financial services for women is an essential element of financial inclusion and one of our overarching objectives.