News
MICROCAPITAL BRIEF: Microfinance Information Exchange Releases Benchmarking Reports on Mexico and Paraguay
19 Feb 2010 22:14The Microfinance Information Exchange (MIX), the microfinance information clearinghouse, recently released two benchmarking reports covering the microfinance market in Mexico and Paraguay. The 2009 Mexico Microfinance Analysis & Benchmarkin...
MICROCAPITAL BRIEF: Global Industry Analysts Inc Predicts Mobile Banking Customer Base will Reach 1.1 Billion by 2015
19 Feb 2010 21:54A new report released by Global Industry Analysts Inc (GIA) entitled “Mobile Banking: A Global Strategic Business Report” estimates that the global customer base for mobile banking will reach 1.1 billion by 2015. The report provides annual fore...
MICROCAPITAL BRIEF: Standard Chartered Bank Closes Its First Microfinance Deal in Philippines, $1.5m to CARD Bank
18 Feb 2010 15:29Standard Chartered has provided its first microfinance loan in the Philippines to CARD Bank, a microfinance institution (MFI) with over 205,097 active borrowers and a gross loan portfolio of USD 20.1 million as of year-end 2008.According to a S...
MICROCAPITAL BRIEF: ADA (Appui au Développement Autonome) Launches First Issue of “Discussion Paper” Series
18 Feb 2010 15:26ADA (Appui au Développement Autonome), a non-governmental organization specializing in microfinance, has launched the first issue of its “Discussion Paper” series, a publication aimed at initiating debate among microfinance professionals. The t...
MICROCAPITAL BRIEF: European Parliament Reaches Deal on Sources of Funding for $139m Microfinance Facility
17 Feb 2010 19:08Members of the European Parliament (MEPs) have reached an agreement on the sources of funding for the EUR 100 million (USD 139 million) ‘European Progress Microfinance Facility’. Under the agreement, EUR 40 million (USD 55.1 million) will come...
MICROCAPITAL BRIEF: Azerbaijani President Signs Decree Increasing Support for Microfinance Sector Including Non-Bank Credit Organizations (NBCOs)
17 Feb 2010 02:16Azerbaijani President Ilham Aliyev recently signed a decree into law passed by the Azerbaijani legislature last December. The law aims to increase the access that citizens in rural regions have to financial resources, especially providing finan...
MICROCAPITAL BRIEF: Egyptian Law to Expand Microfinance Market by Granting Microfinance Institutions (MFIs) Commercial Status
17 Feb 2010 02:11A new piece of Egyptian legislation is expected to change the status of microfinance institutions (MFIs) from philanthropic organizations to commercial entities. The new microfinance law will grant customers of MFIs “access to commercial financ...
MICROFINANCE EVENT: Microfinance Investment Summit 2010 in Geneva
17 Feb 2010 02:04Event Name: Microfinance Investment SummitEvent Date: March 10 - March 11, 2010 with pre-conference workshops on March 9, 2010Event Location: Geneva, SwitzerlandEvent Website: http://www.microfinancesummit.com/See Our Comprehensive Event Calend...
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), Netherlands Development Finance Company (FMO), International Cooperation and Development Fund (TaiwanICDF) Loan $68m to Garanti Bank for Microfinance Operations
17 Feb 2010 02:01The European Bank for Reconstruction and Development (EBRD), an international finance institution, the Netherlands Development Finance Company (FMO), a public-private development bank, the International Cooperation and Development Fund (TaiwanI...
MICROCAPITAL BRIEF: Hattha Kaksekar Limited (HKL) and Angkor Mikroheranhvatho Kampuchea (AMK), Two Microfinance Institutions (MFIs) Located in Cambodia, Receive Deposit-Taking Licenses
16 Feb 2010 06:03Hattha Kaksekar Limited (HKL) and Angkor Mikroheranhvatho Kampuchea (AMK), two microfinance institutions (MFIs) located in Cambodia, have received a deposit-taking license from the National Bank of Cambodia, the central bank of Cambodia.These a...
Special Debate: Microfinance Credit Bubbles and Self-Regulation
10 Jan 2010 21:37Is there a microfinance bubble in India? Can self-regulation help prevent it? Directors of leading Indian MFIs, Vijay Mahajan of BASIX and P.N. Vasudevan of Equitas share their views on whether such a bubble exists, as well as what Indian MF...
Product development and clients need: An Exclusive interview with Graham A. N. Wright
13 Nov 2009 13:02Mr. Matthew Fuchs of Microfinance Focus spoke with Graham A.N Wright, Program Director of MicroSave India, a microfinance consultancy firm.Here are the excerpts from the interview:Microfinance Focus: MicroSave recently launched the “MFI in a B...
Water Credit 2.0 : Increase Access to Credit and Capital for Safe Water and Sanitation
07 Nov 2009 15:45WHAT IS WATERCREDIT?WaterCredit is an innovative initiative of Water.org that puts microfinance tools to use in the water and sanitation (watsan) sector. It is the first comprehensive program of its kind in the world that connects the microfina...
Narrowing Benefits : Multiple Borrowings
07 Nov 2009 15:38By Rishabh Jain , Nilutpal Pegu for Microfinance Focus In the past few years, Indian microfinance has seen unprecedented growth. As per the Bharat Microfinance Report 2008, published by Sa-Dhan, the MFI channel served about 141lakh clients with...
How to Target the Poorest?
07 Nov 2009 15:36By , Jyoti Prasad Mukhopadhyay, Associate Centre for Micro Finance ResearchThe whirring sounds from Pashupati‟s paddy-husking mill drown out the cricket chirps and children‟s laughter from the surrounding fields. Pashupati strolls through his m...
The Pain of Failure: Lessons from MFI Liquidations
07 Nov 2009 15:34By Daniel RozasIn June 2006, FOCCAS, a once promising Ugandan MFI with an unusually committed client base, became insolvent and was closed. Its socially responsible (SR) creditors recovered nothing on their outstanding loans.In April 2007, WEE...
BUSINESS MODEL FOR MFIs—CLUSTER MODEL
07 Nov 2009 15:28By Dr. Souren GhosalIt has been well established that future of micro financing institutions lies in its capability to generate inclusive economic growth to fulfill the social and economic objective and the alleviation of poverty from the soci...
What’s Missing in the Middle? Investment in Knowledge Capital!
07 Nov 2009 15:18Henry Ford may have been a terrible human being, but he was a marketing visionary. When he realized the production potential of the automobile, he also quickly realized that capacity might readily outstrip demand. There were simply not enough...
Role of Microfinance in Environment Protection
07 Nov 2009 15:15By Stewart Craine, Founder-Barefoot PowerIn 2006, a Noble Peace Prize was given for the poverty-alleviating impacts of microfinance. In 2007, a Nobel Peace Prized was given for environmental impacts of clean energy. There is no clearer indicati...
Managing the Double Bottom Line in Microfinance
07 Nov 2009 15:14Dr. Sourendra Nath Ghosal , Head (Knowledge Management) , Microfinance FocusMicro financing institutions have emerged as a successful delivery model to garner savings of poor of course in a limited manner and to fund rural and urban poor to pur...
MEET THE BOSS: François Durollet, Managing Director of PlaNet Finance
22 Feb 2010 22:38PlaNet Finance Group is an international organization with the mission of alleviating poverty through the development of microfinance. The group consists of a non-governmental organization (NGO) called PlaNet Finance, which has historically bee...
MICROCAPITAL BRIEF: Professor Njuguna Ndungu, Governor of Central Bank of Kenya (CBK), Announces that CBK Will Review Microfinance Act, Comments on Industry
22 Feb 2010 19:07Professor Njuguna Ndungu, the Governor of the Central Bank of Kenya (CBK), has announced that CBK will review the Micro Finance Act that came into effect in May of 2008.The act was intended to regulate the microfinance industry through licensin...
MICROCAPITAL BRIEF: International Finance Corporation and KfW Entwicklungsbank to Establish Microfinance Institutions (MFIs) in Zambia and Senegal in 2010
22 Feb 2010 13:38The International Finance Corporation (IFC), the investment arm of the World Bank, and KfW Entwicklungsbank (KfW), a state-owned development bank based in Germany, have announced that they will establish microfinance institutions (MFIs) in Zamb...
MICROCAPITAL BRIEF: Newsweek Article Examines Importance of Microfinance Institutions (MFIs) in Post-Disaster Environments
23 Feb 2010 06:03A recent article in US-based Newsweek magazine entitled ‘Big Crisis, Small Help’ examines the importance of microfinance institutions (MFIs) in mitigating crises in post-disaster environments. “Microfinance institutions are used to dealing at g...
MICROCAPITAL BRIEF: International Finance Corporation (IFC), SONAM, and Bank of Africa Invest Total of $2.25m in MicroCred Senegal, a Microfinance Institution (MFI)
23 Feb 2010 06:03The International Finance Corporation (IFC), the investment arm of the World Bank, has announced that it will make an equity investment of XOF 574.6 million, the equivalent of over USD 1.2 million, in MicroCred Senegal, a microfinance instituti...
MICROCAPITAL EVENT: “Developing Inclusive Financial Systems: The CGAP Course for Funders of Microfinance,” April 26 – 30, 2010, Bali, Indonesia
23 Feb 2010 06:03Event Name: Developing Inclusive Financial Systems: The CGAP Course for Funders of MicrofinanceEvent Date: April 26 – 30, 2010Event Location: Bali, IndonesiaSee Our Comprehensive Event Calendar Here:http://microfinanceassociation.ning.com/event...
MICROCAPITAL BRIEF: Grameen Foundation Announces Joint Initiative with Oikocredit, Catholic Relief Services, Terrafina Microfinance, and Planet Rating to Apply Progress out of Poverty Index to MFIs in Africa
23 Feb 2010 06:03The Grameen Foundation, an independent non-profit organization, has announced a two-year initiative to assist African microfinance institutions (MFIs) in targeting and tracking clients using its poverty assessment tool, the Progress out of Pove...
MICROCAPITAL BRIEF: Microfinance Information Exchange Releases Benchmarking Report on Eastern Europe and Central Asia
23 Feb 2010 06:03The Microfinance Information Exchange (MIX), the microfinance information clearinghouse, recently released the 2009 Eastern Europe and Central Asia Microfinance Analysis and Benchmarking Report. The report examines credit risk, currency risk, f...
MICROCAPITAL BRIEF: Basel Committee on Banking Supervision Issues Consultative Paper on Microfinance
23 Feb 2010 06:02The Basel Committee on Banking Supervision, a committee established by the central bank governors of the Group of Ten countries, has issued for consultation a report entitled “Microfinance Activities and the Core Principles for Effective Bankin...
MICROCAPITAL BRIEF: Indonesian Government Adds 13 Banks to Association of Regional Development Banks (Asbanda) to Distribute Microcredit
24 Feb 2010 06:03The government of Indonesia has added 13 existing banks to the Association of Regional Development Banks (Asbanda) to distribute microcredit across the country. The 13 banks include: PT Bank DKI, PT Bank Nagari, PT Bank Jabar Banten, PT Bank Ja...
MICROCAPITAL BRIEF: Nigerian Satelite Microfinance Bank Deploys Clickatell SMS Alert System to Limit Fraud
24 Feb 2010 06:02In an effort to prevent fraud and keep customers informed, Satelite Microfinance Bank, a microfinance institution in Nigeria, has recently started using the Clickatell text-message alert system to notify customers when debit or credit activity...
MICROCAPITAL BRIEF: Indian Microfinance Institution SKS Microfinance Raises $21m from Debentures and Commercial Paper
24 Feb 2010 06:02SKS Microfinance, a microfinance institution in India, recently raised INR 100 crore (the equivalent of USD 21 million) by issuing INR 50 crore (the equivalent of USD 10.5 million) worth of non-convertible debentures to Bajaj Allianz Life Insur...
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Article Discusses Tradeoffs in Encouraging Healthy Competition in Microfinance Sector
25 Feb 2010 06:03A recent article featured on the CGAP (Consultative Group to Assist the Poor) website discusses a new series of Policy Framing Notes by regulatory expert Dr David Porteous concerning the tradeoffs that regulators face in trying to encourage hea...
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Releases “Technical Guide for Investors on Implementing the Client Protection Principles”
25 Feb 2010 06:03CGAP (Consultative Group to Assist the Poor) has released the “Technical Guide for Investors on Implementing the Client Protection Principles,” as part of a wider consumer protection campaign focusing on fair lending within the microfinance ind...
MICROCAPITAL BRIEF: Reserve Bank of Fiji Creates National Financial Inclusion Taskforce to Increase Access to Financial Services Including Microfinance
25 Feb 2010 06:02The Reserve Bank of Fiji (RBF) recently created a National Financial Inclusion Taskforce made up of 11 members, including four private sector representatives, to oversee the extension of financial services to unemployed and impoverished residen...
MICROCAPITAL BRIEF: European Commission Launches $135m Microfinance Facility
26 Feb 2010 14:00The European Commission has officially launched the EUR 100 million (USD 135 million) “European Progress Microfinance Facility,” which was approved by members of the European Council and European Parliament. EUR 40 million (USD 55.1 million) wi...
MICROCAPITAL BRIEF: “Angola Youth” Microcredit Program Funded by Savings and Credit Bank (BPC), a State-Owned Commercial Bank, Reaches 262 Youths in 2009
01 Mar 2010 14:49According to a recent AngolaPress article, 262 youths in the southern Angola province of Cuene received microloans in 2009 from the “Angola Youth” microcredit program.The program was launched in 2007 by Angola’s Ministry of Youth and Sports. Al...
MICROCAPITAL BRIEF: Women’s World Banking (WWB) Appoints Kathryn C. Mayer as the Director of the Center for Microfinance Leadership (CML), Which Provides Advisory Services to Microfinance Institution Managers
01 Mar 2010 14:44Women’s World Banking (WWB), an organization that provides technical and advisory services to its global network of microfinance institutions (MFIs), has appointed Kathryn C. Mayer as the Director of the Center for Microfinance Leadership (CML)...
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Supports Small and Medium-Sized Enterprises (SMEs) with $25m Loan to UniCredit Leasing Ukraine
01 Mar 2010 06:35The European Bank for Reconstruction and Development (EBRD), an international finance institution, recently loaned USD 25 million to UniCredit Leasing Ukraine, the Ukrainian arm of the international leasing company UniCredit Leasing, in an effo...
MICROCAPITAL BRIEF: Bank of the Philippine Islands Globe BanKO to Provide Investment Services to Microfinance Institutions (MFIs)
01 Mar 2010 06:29Bank of the Philippine Islands (BPI) Globe BanKO recently announced plans to expand its operations to include providing client microfinance institutions (MFIs) with liquidity management services and helping MFIs improve their operations [1]. BP...
MICROCAPITAL BRIEF: Compartamos Banco, a Mexican Microfinance Bank, Reports 33% Increases in Net Income and Total Loan Portfolio for 2009
01 Mar 2010 06:25Compartamos Banco, a Mexican microfinance bank, reports that both its net income and its total loan portfolio increased by 33 percent in 2009. Fernando Alvarez Toca, the CEO of Compartamos Banco, reflected upon 2009 as “one of the most challeng...
MICROCAPITAL BRIEF: Bill and Melinda Gates Foundation and MasterCard Foundation to Grant $16m to Opportunity International’s African Microfinance Program
01 Mar 2010 06:20The Bill and Melinda Gates Foundation and the MasterCard Foundation are partnering to award a grant of USD 16 million to Opportunity International, an international non-profit organization with a microfinance program headquartered in Malawi. Th...
MICROCAPITAL BRIEF: Fitch Releases Ratings of ProCredit Bank of Bosnia & Herzegovina and ProCredit Bank of Kosovo, Providers of Finance and Microfinance to Micro-, Small and Medium-Sized Enterprises
01 Mar 2010 06:03Fitch Ratings, a global credit ratings agency, has released its ratings of ProCredit Bank of Bosnia & Herzegovina (PCBiH) and ProCredit Bank of Kosovo (PCBK).The ratings for PCBiH are as follows: long-term foreign currency issuer default ra...
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Warns Microfinance Institutions (MFIs) to Improve Governance Standards
01 Mar 2010 06:03The Reserve Bank of India (RBI), India’s central bank, has warned that microfinance institutions (MFIs) will be taken off the priority sector lending list if the industry does not improve its governance standards. Under the current system, bank...
MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Financiera Independencia Closes $41m Acquisition of Financiera Finsol
01 Mar 2010 06:03Financiera Independencia, a Mexican microfinance institution (MFI) that focuses on urban lending to individuals, has closed an MXP 530 million (USD 41 million) deal to acquire Financiera Finsol, a Mexican MFI that focuses on group lending in ru...
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Focus Note Examines Consumer Protection Regulation in Microfinance Industry
01 Mar 2010 06:03A new CGAP (Consultative Group to Assist the Poor) Focus Note examines “what consumer protection regulation should look like in places where consumers are poor, access to finance is limited, and regulatory capacity is often overstretched.” The...
MICROCAPITAL BRIEF: Southern Sudan Microfinance Development Facility (SSMDF) Provides $92k to Rural Finance Initiative (RUFI), a Microfinance Institution (MFI), for Technical Assistance and On-Lending
02 Mar 2010 17:08The Southern Sudan Microfinance Development Facility (SSMDF), a microfinance investment facility supported by the Ministry of Finance and Economic Planning, the Ministry of Commerce and Industry, and the Ministry of Agriculture and Forestry of...
MICROCAPITAL BRIEF: Financiera Independencia, a Microfinance Institution (MFI) Located in Mexico, Will Submit Request to Receive Banking License
02 Mar 2010 08:34Financiera Independencia, a microfinance institution (MFI) located in Mexico, has announced that on February 24, 2010, its Board of Directors authorized the MFI to submit a request to receive a banking license, thus allowing it to offer a wider...
MICROCAPITAL BRIEF: Local Press Reports on Performance of Georgian Microfinance Sector in 2009
02 Mar 2010 08:21According to a Georgian Business Week article, the Georgian microfinance sector saw profits of GEL 16 million, the equivalent of over USD 9.3 million, in 2009.Additionally, twelve new microfinance organizations were registered by the National B...
MICROCAPITAL BRIEF: LOLC Micro Credit Ltd. (LOMC) Receives $14m from Symbiotics and Three Triodos Funds to Expand Microfinance Operations in Sri Lanka
03 Mar 2010 06:38Symbiotics SA Information, Consulting and Services Switzerland, a microfinance investment intermediary, and Triodos Investment Management, a group managing four microfinance funds, recently loaned the equivalent of USD 14 million to LOLC Micro...