Conflict of Interest Policy
In keeping with M-CRIL’s pioneering role in facilitating the employment of best practices in the
microfinance sector, we are highlighting our approach to the issue of conflict of interest.
M-CRIL has had a very strict approach to conflict of interest policy from its very first day of
operations in 1998. Structural safeguards have been built into our operations from the start to
protect the quality of our service and to maintain our reputation. This highlights M-CRIL’s
commitment to transparency in conducting its business.
M-CRIL’s approach to Conflict of Interest
All rating reports are referred to an independent Rating Committee.
Uniquely, amongst microfinance rating agencies,
M-CRIL’s Rating Committee consists of microfinance experts who are
independent of M-CRIL’s management
The Rating Committee is made up of academics, bankers and chartered accountants,
each with independent sources of income and no one is significantly dependent on
earnings from M-CRIL
Each draft report is referred to a sub-committee of two persons from the Rating Committee;
recusal is applied wherever a member of the committee has a relationship with the rated MFI
The MFI’s response to the comments of the rating team is presented to the Rating Committee
along with the draft report
The two-member Rating sub-Committee for a particular report discusses the findings with the
rating team, taking into account the MFI’s response
It is only after discussion with the rating team
(and, if necessary after seeking further clarification from the rated MFI), that
the Rating sub-Committee decides the final grade to be assigned to the MFI
M-CRIL takes the issue of conflict of interest very seriously. If you have any questions, please
get in touch and we will respond fully to any queries.
Contact our Managing Director
sanjaysinha@m-cril.com