Microfinance of Lebanon - Research Paper Example

The Market of Microfinance in Lebanon Introduction Microfinance is primarily designed to provide financial aid to poor households. As a tool for poverty reduction, microfinance has developed significantly in various global regions. There are several programs, initiated by global financial institutions to improve the industry of microfinance. Aside from financial help, there is entrepreneurial support involved as most microfinance institutions (MFIs) also monitor the success of their borrowers. One of the main aspects being developed is the process of penetrating areas where the poorest of the poor reside. Government institutions, private enterprises, and non-government organizations are convening to ensure that microfinance will serve its intended purpose1. As one of the poorest countries, Lebanon households are expected to benefit from the influx of microfinance intermediaries. Based on the current economic figures, Lebanon has a high poverty rate as compared to other GCC counterparts.2 The high poverty rate coupled with the entrepreneurial skills of Lebanese makes microfinance a fit in the economy. The banking system in Lebanon is also making huge leaps of progress. As of 2010, there are 54 commercial and 10 specialized banks operating in the country. These figures indicate the high awareness of Lebanese towards borrowing and credit is high3. Small and medium scale enterprises are also important to stabilize an economy slowed down by political unrest and violence. Features of Microfinance According to the World Bank4, microfinance has key features that differentiate it from other credit providers and financial intermediaries. These features include: (1) small transactions and minimum balances; (2) loans and entrepreneurial activity; (3) collateral-free loans; (4) group lending; (5) target poor clients; (6) target female clients; (7) simple application processes; (8) provision of services in underserved communities; and (9) market-level interest rates5. MFIs are provided with sufficient latitude to implement policies and strategies deemed as necessary. The most important aspect of microfinance is that credit has to be small. Also, the term “focus on the poor” has been subject to debate among microfinance experts. Robinson argued that such financial tool should be extended to poor households that are ‘economically active” 6. Daley-Harris (16), however, opined that microfinance should focus on reaching out to indigents. Karlan and Goldbergstated that microfinance has distinct liability structure. Each structure poses different effects and targeting. The most common form is the solidarity group, which is also called as the “Grameen model”. In this setup, a 5-person group is formed allowing each member to guarantee the other members’ repayment. If a member fails to pay a loan, the other must cover for the due or the group will lose the privilege of accessing future credit. Village banking is a bigger version of solidarity groups usually comprised on 15-20 individuals. The members are responsible for acquiring loans from MFIs as well as settling required dues. The last structure is focused on individual lending and is similar of bank lending. Some MFIs require collateral from borrowers in the form of real estate and other assets7. Of the 500 million economically active poor in the world, only 5% have access to financial aid and services. The huge gap is a primary motivation for several proponents of microfinance to further improve the lending system. Credit scheme through government agencies and donors are also implemented. Rhyne commented that the credit services provided by the aforementioned institutions have below market interest rates8. There are loans that require some level of savings, but Robinson stated that the most important goal is to elevate the living conditions of the poor and provide sustainable empowerment9. A major concern on such credit schemes is that there is low repayment rate and constant injection is needed from the donors and government agencies to maintain the client base. Studies on the Impact of Microfinance Social and economic impact – There are several studies that have identified tangible impact of microfinance. The World Bank mentioned that microfinance addresses six out of the seven Millennium Development Goals.10 The study of Wright also indicates increase in household income and vulnerability reduction. Microfinance has also been an influencing factor in upgrading nutritional status and improving the attendance in primary schools. Although most loan recipients use the loan proceeds as primary facilitator for income generation, there are households that tap financial services to serve as funding for alternative sources of income. Access for the poorest – There is a universal agreement that not all poor individuals will benefit from microfinance. Another important aspect that has to be taken into consideration is the entrepreneurial skills of the client. Like any business venture, MFIs rely on the success of their clients to ensure loan repayments and microfinance sustainability. According to Zaman savings level have no significant difference among poor microfinance clients. In addition, there is no clear evidence showing that the poorest individuals have least entrepreneurial expertise as compared to other poor prospects11. Churchill pointed out that the performance of MFIs catering to the poorest is comparable to MFIs servicing the poor. There is no clear gap as to MFIs that focus on poor individuals in terms of sustainability12. Targeting – Wright explained that the impact of microfinance will only be clearer when there is appropriate targeting and product designs are clear. An effective targeting tool or mechanism is needed to ensure that the exact prospects are identified. Most of poorest have no access to information; hence microfinance programs are often ignored by the segment13. Navajas, et al further added that MFI with concrete programs that cater to the poorest are the only institutions that will retain these individuals as clients14. Savings or Credit – Most MFIs encourage savings because such protects clients from seasonal cash flows and also act as a buffer for unexpected finance downturns. Deposits also promote fiscal disciple among clients and the savings could potentially replenish the funds of MFIs. But focus on savings is deemed as inefficient because there is no movement cash and parked assets are unavailable to create additional wealth. Fruman and Paxton observed that MFIs that focus on savings instead of credit tend to prioritize the poor rather than the poorest and will eventually have a lower impact on poverty alleviation. Borrowers also appear to fare better than non-borrowers or those who have no access to credit15. Synergies with other Programs – There is potential of synergies between microfinance and programs that address social welfare and development. The development becomes clearer when the benefits derived from microfinance are delivered in conjunction to programs initiated by the government and other institutions. Better effect is observed when the infrastructure for microfinance is already in place. Services need to relevant to the target and not just a supplement to what already exists. Microfinance has short-term effect on basic poverty reduction measures and ample support will make these outcomes more long-term. Cost effectiveness and Sustainability - Direct comparisons exhibit that microfinance can be a more cost-effective developmental tool than alternatives including formal rural financial intermediation, targeted food interventions, and rural infrastructure development projects16. Unlike many other forms of interventions, costs for microfinance tend to diminish with the scale of outreach17. Despite the lack of substantial figures, Churchill concluded that MFIs targeting the poorest fare better in terms of financial gains. MFIs that target the poorest also show higher repayment rates as evidenced by Grameen/BRAC when compared to other financial lenders. Microfinance in the Middle East The microfinance setting in the Middle East including North Africa is totally different from the other regions in the world. Brandsma and Hart provided the following main features that make microfinance unique in the region: The expectations by the government and even the population on microfinance are high. One of the reasons for this is the global trend created by microfinance and the focus that has been provided to it by other governments. There has been a spread of misinformation relaying to the people that access to microfinance credit is a right. In particular, governments are the Middle East picture microfinance as the solution to unemployment. In reality, addressing unemployment is not the primary concern of microfinance. There are specific segments that microfinance intends to target and programs should stay true to this mission. The definition of microfinance in the region is described as “narrow” as evidence by lack of focus on women. A key area of defect in the region’s microfinance can be viewed in the emphasis on savings. Accordingly, savings are limited by regulatory and legal barriers but one of the functions of microfinance is to promote savings through deposits. Microfinance loans are limited and seldom cater to clients that require money for health and education expenses. Most countries compensate this limited option through social welfare loans, which are also known as Hassan loans. Governments in the Middle East and North Africa have been regulating microfinance because of the high expectations initially set. Since microfinance is still developing in the region, there is no need to regulate except in situations when MFIs start to take savings and deposits. Observers believe that hasty regulations hamper the growth and sustainability of microfinance programs. Because of the regulations MFIs often shift their identity to non-government organizations. Microfinance in effect is wasted because potential clients are not informed of these changes. Like any other organizations, most MFIs are started like private enterprises and are subjected to similar growth curve. As these MFIs expand, the demand for stability within the organizations also increases. But there are several MFIs which failed because the management lacked the desire to impose necessary changes and promote flexibility. Organizational restructuring creates more problems like succession plan and continuity programs. There are instances when the founders of MFIs fail to channel their vision to the succeeding generation of leaders causing problems in running and sustaining growth. 18 Microfinance in Lebanon The micro credit in Lebanon is one of the smallest in the Middle East and North African region. The 13,500 Lebanese clients only represent 2% of the total borrowers in the region. More important, growth has not been promising and the level of competition remains non-existent. Lebanon, however, has one of the highest indicators of outreach next only to Syria and Jordan. Outreach indicates the targeting efforts of MFIs in relation to the poorest clients in the country. The micro credit industry could be further defined through the following characteristics: Only 35% of the total clients are female, which contradicts to the primary aims of microfinance and the trend in other countries Individual lending is more prominent representing more than 80% of the micro credit loans Borrowers are often required to have guarantors and in some instances asked to surrender their real estate as collateral Micro entrepreneurial activities are concentrated in urban and suburb areas and only 20% are dedicated to rural places Microcredit Market Shares in the Arab World19 The credit-centric microfinance is one of the main reasons that growth is stagnant. In Lebanon, loan is the only product available and most MFIs lack the capability to diversify. Other offering such as deposits, savings, and insurance are often limited and further subjected to government regulations. Clients are oriented to credit only as consumption and capital building is neglected. Best practices on sustainability have been bannered by several MFIs in Lebanon. Most MFIs have repayment rates of 94-98%, which is only second to Morocco in the region. MFIs in Lebanon have used successful strategies used by MFIs in other countries as foundation for their initiatives. Another important highlight of micro credit in Lebanon is the support provided by groups such as UNDP, USAID, the European Union, and the Spanish government. One of the strategies implemented by European Union through the Economic and Social Fund for Development is focused on the efficiency of MFIs in Lebanon. Lebanon has approximately 20 MFIs primarily providing credit services and business development services. Majority of MFIs were formed through local and international non-government organizations offering credit at below market interest rates. Most MFIs have been struggling to find sufficient funding and the others are being subsidized just to meet annual growth benchmarks. Several NGO-based MFIs are having problems because microfinance is only part of their overall existence. These NGOs have not fully committed to investing in providing credit services and are also preoccupied with other development initiatives. Operational soundness and efficiency is a major detriment to most MFIs. Even the process of targeting is considered as problematic and ineffective. Top Market Players Al Majmoua (Lebanese Association for Development) – Al Majmoua was founded in 1994 by Save the Children to serve as a vehicle for micro credit in the country. The Group’s most important mission is to serve entrepreneurs that are excluded from the banking system through credit provision. Al Majmoua intends to provide entrepreneurs the opportunity to form stable enterprises and in effect improving the quality of life. From 1994 to 1999, the activities of Al Majmoua were focused on women entrepreneurs through the establishment of solidarity groups. As soon as the Group became independent, Al Majmoua reorganized the strategies and also started catering to the needs of individual male micro businessmen. As of 2004, three fourth of the total loan are allocated for solidarity groups and the rest to individual borrowers. Al Majmoua’s approach in catering solidarity groups is similar to most MFIs in the region. The process involves comprehensive investigation of each members and assessment of creditworthiness. Loans are usually issued through cheque and could be cashed in partner banks. In addition, repayments could also be done through partner banks and remittance centers. Like in all solidarity groups, the treatment for default is similar which involves the other members paying for the dues. Al Majmoua, however, noted that 98% of the solidarity groups have been religiously paying their dues. As of 2004, only six solidarity groups have men members. In 2010, however, at least 40% of the borrowers of Majmoua are male entrepreneurs (Mix Market). This trend is expected to continue as exposure by male businessmen improves. Al Majmoua Financial Performance, 2007-2010 (in USD)20 Year 2007 2008 2009 2010 Financial Revenue 2,215,421 2,950,564 4,074,031 5,140,116 Net Income (after taxes and donations) 1,267,114 1,213,039 1,886,578 1,570,432 Assets 9,895,388 11,506,868 15,896,083 22,940,042 Liabilities 1,140,838 1,539,279 4,041,916 9,515,443 Equity 8,754,550 9,967,589 11,854,167 13,424,599 Write offs 237,382 92,036 139,791 175,785 The above table shows the performance of Al Majmoua from 2007 to 2011 and there is a clear indication of growth in the MFI. Revenue more than doubled during the period although net income has been up and down. Total assets registered significant growth, which provides a picture of strength. These figures highlight the efforts of Al Majmoua in growing the business and reaching to more clients. In addition, the company has been active by growing the number of clients and loan portfolio.21 Another strategy being implemented is network expansion through the creation of partnerships.22 AMEEN (Access to Microfinance and Enhanced Niches) – AMEEN began operating in 1998 through the efforts of the Cooperative Housing Foundation (CHF), which is involved in human development and microfinance programs. AMEEN’s method of operations is different from usual MFIs because the institution considers micro credit as the counterpart to the banking industry instead of an alternative to outsider clients. Banks that are linked to AMEEN hold responsibility of creating sound lending practices while AMEEN is the party engaged in client management and monitoring. Loan applications are approved by both AMEEN and bank representatives but the MFI has the capacity to visit borrowers to check on their business and assess the clients’ repayment capacity (Assrawi, 51). AMEEN mainly focuses on providing individual loans and the criteria include possession of citizenship, permanent residence in Lebanon, and a sustainable business. There have been questions raised as to the sustainability of AMEEN granted that it partners with banks and only individuals are targeted. But it appears that AMEEN has been successful in becoming a major player in micro credit in Lebanon. The partnership with banks have allows AMEEN to diversify without the hassle of reorganization or distorting current business models. As of 2010, AMEEN caters to 13,712 active borrowers with an average borrowing of USD 1,090.4. The MFI’s assets have already reached USD 18.8 million and the gross loan portfolio is valued at USD 15 million. AMEEN has been expanding the client base through endorsements and testimonials coming from previous and current borrowers.23 Microfinance Industry Analysis Lebanon’s SWOT Analysis24 Porter’s Five Forces – Porter introduced the concept of five forces that seeks to analyze the competition in an industry25. This will serve as an effective tool to carve a picture of the microfinance industry. Based on the model, there are four forces that have to be assessed to determine the condition of the fifth force 26. These forces are important in companies that operate in uncertain and competitive markets. Assessing each factor allows firms to determine their internal strengths and weaknesses as well as evaluate the possible roadblocks that exist within markets. The threat of new entrants shows the possible repercussions of the openness of the industry. There are several barriers that prevent entry of MFIs in Lebanon. There is no ample government support and most NGOs are only willing to undertake micro credit when there are subsidies from donors. But since poverty is still widespread in Lebanon, expect microfinance to grow substantially in the coming years. The demand for micro credit is big enough to encourage the establishment of more MFIs. Also, international groups are starting to see the potential and partnerships with local credit groups are materializing. The emergence and threat of substitutes provides a clear picture as to how microfinance functions as a source of credit. At present, microfinance is still viewed as an alternative even for micro credit. Banks remain the first choice of clients and other institutions also offer another venue for borrowing. There is lack of information dissemination as to the role of microfinance in providing suitable credit. Also, Islamic micro credit is often preferred because of low interest rates and better handling of defaults. AMEEN implemented a good strategy involving tying up with banks. This allows the MFI to have better exposure to a bigger client base. The bargaining power of the consumers determines the capacity of clients to avail the loan and also provide repayments. This aspect also entails the business acumen of clients and their ability to sustain such responsibility. As quoted from UNDP: “Poverty in Lebanon is mainly a function of geographical and socio-economic disparities, Initial attempts to measure post-war poverty in Lebanon began mainly in preparation for the Social Summit for Social Development and suggested that the poorer categories of the Lebanese population are civil servants and farmers; and that rural poverty is a considerable especially in remote areas of the Baalbeck-Hermel and Akkar in Northern Lebanon and the recently liberated region of Southern Lebanon. According to the Living Conditions Index, 32.1 percent of households or 35.2 percent of the Population live below the satisfaction threshold. These are divided between households having a very low degree of satisfaction, including 7.1 percent of households (6.8 percent of individuals), and those having a low degree of satisfaction, including 25 percent of households (28.4 percent of individuals). Households having intermediate satisfaction represent the largest component, with 41.6 percent of households (42.2 percent of individuals), while households having a high degree of satisfaction account for 26.4 percent of the total (22.3 percent of individuals).”27 Porters Five Forces Model28 The bargaining power of the suppliers connotes the strength of the government and donors provide support. There have been several complaints regarding the government’s lack of vision to totally open the potential of MFIs. But recent political unrest and violence have preoccupied the government to focus on more pressing tasks. Donors, on the other hand, are open to partnerships with local providers. Such organizations, however, operate using high standards and some Lebanese MFIs are still untying the ropes and learning the intricacies of micro credit. Also, MFIs needs to be sustainable given that their targets have to be the poorest of the poor and then strategies aligned with the Millennium Development Goals. Issues and Challenges Political instability – Perhaps in all poor countries, unstable political scene is a common theme. Lebanon has been war torn and at present still feeling the ill-effects of the civil war, which occurred from 1975 to 1990. Although microfinance is not a government function, several aspects of it depends on how the government functions. The important role that the government has in microfinance is establishing a suitable environment. This entails spending for roads, schools, and other infrastructure to improve the living conditions of the population. The government has been getting enough support from Western countries. The current problems in Syria are viewed as potential troublemaker in Lebanon. In addition, there are groups and individuals in Lebanon that are sympathetic to the plight of the Syrian government. The Lebanese banking sector is a major aspect that drives the Syrian-Lebanese economic relations. Syrian economic activities comprise 10% of consolidated balance sheets in Lebanese banks and Lebanese banks have loaned more than USD 1 billion to Syrian individuals and corporations.29 Another important segment affected by the distress in Syria is tourism. In the first seven months of 2011 tourist count has decreased by 25%.30 Tourist activity in the Syria-Lebanon border has also dropped by 75% to 90%. This trend is alarming because tourism is one of the main targets of small and medium scale enterprises. Most of the services offered in Lebanon by entrepreneurs are catered to tourism. At present, governments31 are tasked promote, support and endorse microfinance grounded on the framework of small and medium scale enterprises. These are aligned to the MDG in particular reducing poverty. Policy makers need to view microfinance as an avenue to address the following goals: Serve as tool to provide income among the poor households Boost the labor market through job creation Improve the financial markets and improving supply of capital Encourage entrepreneurship in rural areas Create an anchor of foreign trade through the goods produced by businesses supported through microfinance32. Capacity Building – The high poverty incidence in Lebanon provides an opportunity for untapped micro credit demand. One important aspect that MFIs need to improve is the product and services offered to clients. Perhaps this is the best time to diversify and explore on the potentials of microfinance aside from lending. Leadership in the industry has to step up to consolidate efforts to build efficient systems and processes for further microfinance growth. For sustainable growth of MFIs and for meeting the challenges of microfinance expansion, it is important that the training facilities are provided and training materials constantly improved and reviewed. At present, more training mechanisms and cost-effective management tools are being innovated and communicated by practitioners. Given the advent of technology in the microfinance industry and the need of becoming more proficient, more cost-effective and accountable is high. Training for risk management and meeting industry benchmarks will remain vital not only for survival sustainability but also for maintaining the leadership in terms of promoting outreach and maintaining financial self-sufficiency. Sharing of more information on the experiences and strategies of fast growing in particular large MFIs through the Internet and other means will benefit the small and emerging MFIs33. Improving Competition – There has been minimal trace of competition in the micro credit in Lebanon because of limited players resulting to inefficiency. Most MFIs in the country are more concerned about the political and economic constraints and the effect of the instability to their portfolio and bottom line. In the last five years, growth in the industry has been slow and only the top players have showed modicum amount of success.34 There are budding MFIs in the market but the expectations are unreasonably high and pressure from stakeholders always provides threats and concerns. Competition ensures well functioning markets, protects consumers, promotes productive efficiency and provides incentives for the development of new products. MFIs were largely operating as a monopolist in the early years. Such a market power is, however, associated with inefficiency in allocation, which refers to the welfare losses as a result of high prices a monopolist charge. There is even further loss if the monopolist employs inefficient technology. Besides, there may not be pressure to invest in efficient technology and introduce new products35. Therefore, it would be reasonable to assume competition can be beneficial in the context of microfinance market as it may result in improved and new financial product designs, better customer services, lower costs and lower interest rates. Financing Source – The available funds in banks have not been influential in the investment level provided for micro credit. MFIs are having difficulties in securing partnership with banks or finding donors to subsidize their operations. Add to the issues are the incidence of political unrest and other socio-economic problems. These are reason why most MFIs fail to succeed and sustain growth and more likely reflect the current state of the industry. The risks are high forcing banks and even donors to be cautious in providing financial support. Like any other business venture, funding is an important component of successful MFIs. There has to be sufficient inflow of funds to expand outreach and improve client targeting. This challenge is pressing and has to be made an utmost priority. Outlook and Policy Recommendations 1. Capacity building – The potential in Lebanese MFIs is still high and sustained success remains a major goal. The table below provides some basic strategies that could serve as foundation for future capacity building of MFIs in Lebanon.36 Focus on industry best practices and program management • Use of annual work plans, business plans, DIPs/ operational plans, and financial projections • Regular program review incorporating client feedback • Updated operational manual • Use of daily, weekly, monthly, annual financial and management reports Design and implement suitable monitoring processes • Monitoring and evaluation system in place • Assessment information used to make decisions and motivate staff performance • Appropriate MIS (accounting, auditing, budgeting and loan tracking) established and implemented with regular reviews and upgrade Strictly impose adherence to industry, country and donor reporting standards at all level • Accurate and timely financial statements and portfolio performance reports that meet ADRA requirements • Donor, industry, and country reporting requirements satisfied Recruit and retain talented staff at all levels of management and operations • Formalized recruitment process with updated job descriptions • HR policies and procedures (including performance reviews and staff development plans) in place • Maintain high staff retention rate 2. Regulatory Setting - An empowering legal and regulatory environment is critical for the development of the microfinance industry in Lebanon and the industry’s integration with the formal financial sector. This is an area where the government could play an important role. The issues of financing microfinance and the legal and regulatory framework for integrating microfinance with the mainstream financial system are inextricably connected with each other. The framework is necessary to facilitate the expansion of microfinance and accelerate sustainable growth rate. The government should create an environment in which local MFIs provide substantial socio-economic impact. Mobilization of saving deposits and other funding become easier when the MFIs have appropriate legal identities. Donor trust and confidence is also boosted when formulated regulations promotes transparency, good governance, and accountability. Expanding outreach to achieve the Millennium Development Goals will require increasing funding various local and international sources. If the issue of appropriate legal and regulatory framework is properly addressed, then the funding issue is secondary and comes within the process. These two issues are becoming highly pressing for Lebanon for the development of their microfinance programs. 3. Legal Barriers – There are several legal impediments that need to be highlighted in order to improve the current micro credit setting. The NGO law in Lebanon prevents institutions from transferring an asset to another organization. This means that most existing NGOs, with the financial capacity to diversify into microfinance will have a hard time. But there have been practices in Lebanon (practically not illegal) where an NGO has to channel the income of microfinance activities to the non-revenue generating segment instead to the members of the NGO. A plausible suggestion is to eliminate this clause and allow flexibility among NGOs to venture in microfinance provided that industry regulations are followed. As quoted from CGAP: “The Consumer Protection Law, which protects individuals and legal entities engaged in non-professional activities, addresses fraud, abusive practices and loan disclosure rules by banks and other institutions. Banks and financial institutions are also subject to the provisions of the Banking Law and Central Bank directives, which include protections for clientele, including a requirement that a bank or financial institution obtain written consent from a potential customer before conducting due diligence.” 37 4. Interest Rates38 - Interest is the main source of income for MFIs. Their sustainability and profitability depend on their interest income. There is a lot of debate on the appropriate rate of interest that should be charged on loans. MFIs in several countries charge at a flat rate ranging from 12-27 % per annum. There are also some MFIs even charge higher rates which go up to 36% or even more on the grounds of covering costs and attaining viability faster. The rate of interest of MFIs should not, however, be compared with the rate of money lenders, but it may be compared with the commercial rate to show how cost-effectively MFIs operate. MFIs provide small loans to borrowers at a rate of interest, which in many cases is not much higher than the commercial rate. 5. Diversification – MFIs in Lebanon are limited to offering credit to borrowers and some engage in minor business development activities. Given that the success of MFIs is dependent of the clients’ capacity to pay, there needs to be processes to ensure that MFIs actively monitor the ventures established by their clients. Most important, deposits and savings need to be promoted. The strategy of partnering with banks is a good first step by there needs to be a law that allows MFIs to hold deposits considering the inexistence of banks in some rural areas. Conclusion Based on the discussions made, there are several takeaways that need to be highlighted. The prevalence of poverty provides an opportunity for MFIs in Lebanon to provide outreach and extend help to the poorest of the poor. Demand for micro credit is high because the poor comprise a significant number in the total population. There are several issues that prevent MFIs from sustaining success and becoming a major player in the financial sector. Politics in the Middle East have been unstable as of late and the spillover carries through within the region. Funding is also an issue because most MFIs lack the resources and the government at present has to capacity to subsidize micro credit activities. Another major issue that has to be resolve is the lack of regulatory framework needed to make the environment suitable for MFIs to operate and flourish. These issues could still be addressed and the level of optimism in the industry remains high, which is needed for all stakeholders to starting taking bold and significant actions. Works Cited Abbassi, A., Khaled, M. and Lauer, K. “Diagnostic Report on the Legal and Regulatory Environment of Microfinance in Lebanon.” CGAP. 2009 Alpay, S. “The Role of Capacity Building and Microfinance.” 29 March 2011 Assrawi, F. “Microfinance in Lebanon.” 2005. ADRA Network. “Best Practices in Institutional Capacity Building for Microfinance.” ADRA Network Journal. Oct. 2004. 29 MaR. 2011 Calo, C., De Nardi, S., Faussone, L.G., Genisio, B., and Palloto, P. “Islamic Microfinance: Alternative Development in Northern Lebanon,” ISPI, Milan, 2008. Churchill, C. 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