Banks which have already stress tested their assets are now reportedly ‘preparing for the worst’. Some banks have suggested further support in the form of capitalizing the overdue interest payments from the SHG sectors. Others are looking to restructure or reschedule loans to SHGs. In some other cases, the extent of the monsoon deficit is yet to be known and banks, like the Syndicate Bank, are currently still in the process of ‘evaluating’ the situation. To quote the Syndicate Bank’s Executive Director, Mr V.K. Nagar, ‘We are still evaluating the situation, before working out a relief program’. It has also been revealed that despite the asset stress, few banks are in favor of another round of ‘loan forgiveness’, in the form of waivers. It must be stated that a loan waiver in farm credit was extended last year. Under the scheme, there were write-offs and rescheduling of loans accumulating up to INR 1.6 lakh crore (approx USD 328 million).

According to an April 2009 report by Crisil, the specialized credit rating organization focused on microfinance in India, it is estimated that the Gross Non-Performing Assets (GNPA) of the banking sector are likely to touch 5 per cent by the end of March 2011 from a level of 2.3 per cent in end-March 2008 [2]. Crisil estimates that ‘most’ of the NPAs would come from the corporate sector which includes the small and medium enterprises. Reasons given by Crisil for the rise in NPAs include the slowdown in demand and lack of funding of lengthy working capital cycles. Interestingly, the Indian Finance Ministry has disagreed with the rating agency’s forecasts. In this regard, the Minister of State for Finance, Mr. Namo Narain Meena, was quoted as saying ‘I don’t agree with them and I think it will not happen. If we continue to maintain quality lending, there won’t be NPAs’. Similarly, in June this year, Moody’s Investors Service had also reportedly ‘warned’ that the Indian banking system’s asset quality could come under strain, with higher levels of non-performing loans [3].

The prime funders for SHG/ MFIs in India — especially in the rural areas, have been the PSBs and the National Bank for Agriculture and Rural Development (NABARD). Funds to SHGs/ MFIs are provided at rates ranging from 9 to 10 per cent with the actual lending rates to beneficiaries hovering at 24 per cent and the delinquencies until last year reportedly ‘low’ with a recovery of 80 per cent [1]. In the current scenario, the outstanding credit extended to the SHG sector is estimated at INR 12,000 crore (approx USD 24 million). According to Moody’s, while certain rated Indian banks, especially in the private sector, are ‘well capitalized’ and capable of ‘absorbing’ the related costs of the negative credit outlook, the PSBs are not. Private banks, in contrast to their public counterparts, have the ability to raise significant amounts of fresh equity by leveraging favorable capital market conditions, both locally and globally. In the case of PSBs, given stringent rules governing capital ratios and their limited ability to raise new capital, Moody’s has stated that certain PSBs may need fresh equity to counter problems due to strained asset quality and has called for ‘any commitment by the government on this front’ [3]. It may be stated here that the Indian government had recently stated that it may consider the option of recapitalizing PSBs to strengthen their financial position, according to a press release on the Indian daily, The Hindu. For more on the Indian microfinance sector, please look up our past microcapital stories available here.

By Bharathi Ram, Research Assistant

Bibliography:

[1] The Hindu Business Line, Aug 24, 2009, Banks may see a rise in NPAs, http://www.thehindubusinessline.com/2009/08/25/stories/2009082552170600.htm

[2] The Hindu Business Line, Aug 10, 2009, Minister disagrees with Crisil forecast of NPAs, http://www.blonnet.com/2009/08/11/stories/2009081151880600.htm

[3] The Hindu, Asset Quality may come Under Strain, http://www.blonnet.com/2009/06/26/stories/2009062651110600.htm

[4] CRISIL, http://www.crisil.com

Event Date: October 21-22, 2009

Event Location: Nairobi, Kenya, Hotel Intercontinental

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

Cost:

Registration fee per MFI: EUR 100 (for two representatives/ MFI)

Note: In the case of more than two representatives per MFI, there will be an additional charge of EUR 100 per person.

Who Should Attend?

The event is open to African MFIs that have already undergone a rating or performance evaluation with a recognized professional rating agency or who have signed a contract to be rated within the next few months. It is also be open to social investors active in microfinance and all full and associate members of AMT.

Summary of Event:

The microfinance investor conference focuses on the ability of microfinance institutions (MFIs) to mobilize resources, specifically from private investors and also on the growing importance of available transparent information regarding the financial performance of MFIs. Access to such commercial-related funds is generally linked to the availability of up to-date and transparent financial information which facilitates the ability to verify an institution’s aptitude for covering all its costs. AMT aims to facilitate this link between rated African MFIs and microfinance investors through its annual investor’s fair.

Event Theme and Topics:

The complete agenda for the event is currently unavailable. As per information available, the schedule includes a series of ‘speed’ meetings between MFIs and investors in addition to presentations on transparency and investments.

Background on Organizers:

The African Microfinance Transparency forum (AMT) was initially created in 2003 as the ‘African MFI Performance Evaluation Forum’, serving as a discussion platform between MFIs and rating agencies active in Africa. It was later formally institutionalized as the African Microfinance Transparency forum in 2008 as a non-profit association in South Africa. Its main objective is to promote transparency and efficiency amongst African MFIs by developing the market for external performance evaluations. Its board of directors includes representatives from the US based rating agency MicroRate, the Kenyan microfinance organization providing development, banking and advisory services K-Rep and the French microfinance rating agency Planet Rating [2].

Registration: To register for the event, please download the relevant application form – investor registration form is available here, the form for African MFIs can be downloaded here and AMT member-MFIs can download their relevant registration form here. Completed application forms may be sent to by August 31^st 2009.

The registration fee is payable by bank transfer to the following account:

Account name: ADA asbl (AMT)

Currency: EUR

Account number: IBAN LU87 0021 1753 6997 4500

Swift code: BILLLULL

Bank name and address: DEXIA-BIL

69 Route d’Esch

L-1470 Luxembourg

Communication: MFI Name: AIF Registration Fees

Additional queries can be routed to:

Emma-Jayne Paul

AMT c/o ADA asbl

21, Allée Scheffer

L-2520 Luxembourg

Tél +352 45 68 68 31

Fax +352 45 68 68 68

Email: Info@amt-forum.org

Submit Your Event: http://microfinanceassociation.ning.com/events

By Bharathi Ram, Research Assistant

Bibliography:

[1] African Microfinance Transparency: http://www.amt-forum.org

[2] AMT Board of Directors: http://www.amt-forum.org/conseiladministration.html?&L=1

]]> http://www.microcapital.org/microcapital-event-microfinance-investor%e2%80%99s-fair-2009-october-21-22-2009-in-nairobi-kenya-organized-by-african-microfinance-transparency-amt-forum/feed/ 0 http://www.microcapital.org/microcapital-event-viii-national-conference-the-role-of-microfinance-in-overcoming-the-financial-and-economic-crisis-november-17-19-2009-in-moscow-organized-by-the-russian-microfinance-center-rm/?utm_source=rss&utm_medium=rss&utm_campaign=microcapital-event-viii-national-conference-the-role-of-microfinance-in-overcoming-the-financial-and-economic-crisis-november-17-19-2009-in-moscow-organized-by-the-russian-microfinance-center-rm http://www.microcapital.org/microcapital-event-viii-national-conference-the-role-of-microfinance-in-overcoming-the-financial-and-economic-crisis-november-17-19-2009-in-moscow-organized-by-the-russian-microfinance-center-rm/#comments Fri, 21 Aug 2009 13:56:26 +0000 Bharathi Ram http://www.microcapital.org/?p=3628 Event Name: VIII National Conference: The Role of Microfinance in Overcoming the Financial and Economic Crisis

Event Date: November 17-19, 2009

Event Location: Moscow

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

Cost:

Early bird registration fee:

(Available before September 30, 2009)

For Associated Members of the National Partnership of Microfinance Market Stakeholders (NAMMS):

First Participant: USD 440/ Rubles 10500

Subsequent Participants: USD 398/ Rubles 9500

For Russian Microfinance Center (RMC) Partners:

First Participant: USD 419/ Rubles 10000

Subsequent Participants: USD 356/ Rubles 8500

Other Participants:

First Participant: USD 419/ Rubles 13000

Subsequent Participants: USD 356/ Rubles 11500

(Note: Early bird discount can be availed only if the payment is made within 10 working days of the billing)

Registration Fee between September 30, 2009 and October 30, 2009

For Associated Members of the National Partnership of Microfinance Market Stakeholders (NAMMS):

First Participant: USD 565/ Rubles 13500

Subsequent Participants: USD 503/ Rubles 12000

For Russian Microfinance Center (RMC) Partners:

First Participant: USD 523/ Rubles 12500

Subsequent Participants: USD 461/ Rubles 11000

Other Participants:

First Participant: USD 670/ Rubles 16000

Subsequent Participants: USD 607/ Rubles 14500

Summary of Event:

The eighth edition of the National conference on microfinance will focus on the role of small and medium enterprise (SME) lending and microfinance in overcoming the current financial and economic crisis as the main theme. The Conference would highlight issues such as policy incentives for microfinance, priority areas for government support of microfinance, and the strategy of encouraging business startups by the unemployed as a way to create employment and to increase household income.

Key presenters and speakers at the event include officials from the Russian Ministry of Finance, the Ministry of Economic Development, the Central Bank of Russia, Russian policy-makers, legislators and regulators, representatives of the Grameen Bank (Bangladesh), the United Nations (UN), the World Bank, international associations of microfinance providers and financial cooperatives, raters and development agencies, as well as investors with a focus on micro-credit programs [1]

The event organizers also have a call for sponsors. Interested organizations may refer to the event’s sponsor pack section available here for various options on supporting the conference.

Event Theme and Topics:

The three day event will consist of plenaries, discussions, round tables with representatives of the government, training events for regional networks, brainstorming sessions for MFI, free debates and classes led by microfinance community leaders. In addition, an investor fair allowing institutions to approach investors for one-on-one negotiations will also be conducted. Topics for discussions include: Practical implications of the new legislation on credit cooperatives and microfinance; Government support of microfinance; Challenges faced by the finance and credit system in the current crisis, Ways to attract private investment and savings to increase capitalization of the national microfinance system. The complete agenda is not currently available.

Pre-conference seminars focused on the following topics will also be conducted: Government Regulation and Self-regulation of Credit Cooperatives: How to Form Sustainable SROs; and Accounting and Auditing for MFIs. For more information on the pre-conference events, please look up here.

Background on Organizers:

The Russian Microfinance Center (RMC) was established in July 2002 in response to the need for an organization to represent and advocate for the interests of the entire Russian microfinance community. Its mission is to promote a ‘strong and sustainable microfinance sector in the Russian Federation, facilitate access to financial resources for SME and low-income people, create jobs and improve living standards of the poor’. The RMC’s key partners include the Association of Russian Banks, the “Russia” Association of Regional Banks, the Russian National Union of Organizations for Mutual Financial Assistance and the Russian Chamber of Commerce and Industry among others. Key strategic partners include the Consultative Group to Assist the Poor (CGAP), the Small Enterprise Education and Promotion network (SEEP), the United States Agency for International Development (USAID), Citigroup, DAI Int., the World Bank, the European Bank for Reconstruction and Development (EBRD), the European Union, the European Microfinance Network (EMN), and the Microfinance Center (MFC). The RMC Supervisory Board currently includes representatives of 22 major Russian microfinance institutions and their networks (associations), with a combined total loan portfolio of USD 170 million and about 120 thousand active customers [2].

Registration:

To apply, please complete the online registration form available here. The registration form also contains details of accommodation.

Submit Your Event: http://microfinanceassociation.ning.com/events

By Bharathi Ram, Research Assistant

Bibliography:

[1] VIII National Conference: The Role of Microfinance, http://conf.rmcenter.ru/2009/eng/index.php

[2] Russian Microfinance Center: http://rmcenter.ru/en/about/

]]> http://www.microcapital.org/microcapital-event-viii-national-conference-the-role-of-microfinance-in-overcoming-the-financial-and-economic-crisis-november-17-19-2009-in-moscow-organized-by-the-russian-microfinance-center-rm/feed/ 0 http://www.microcapital.org/microcapital-story-reserve-bank-of-india-rbi-deputy-governor-states-that-nearly-50-percent-of-farmer-households-in-india-still-have-no-access-to-credit-calls-for-more-measures-to-extend-financial/?utm_source=rss&utm_medium=rss&utm_campaign=microcapital-story-reserve-bank-of-india-rbi-deputy-governor-states-that-nearly-50-percent-of-farmer-households-in-india-still-have-no-access-to-credit-calls-for-more-measures-to-extend-financial http://www.microcapital.org/microcapital-story-reserve-bank-of-india-rbi-deputy-governor-states-that-nearly-50-percent-of-farmer-households-in-india-still-have-no-access-to-credit-calls-for-more-measures-to-extend-financial/#comments Tue, 18 Aug 2009 14:46:39 +0000 Bharathi Ram http://www.microcapital.org/?p=3609 Nearly half of farmer households in India do not have access to credit either from the banks or other non-banking sources, said the Reserve Bank of India deputy governor Dr. K.C.Chakrabarty, speaking at a conference held recently in Chennai, India and  focused on the theme ‘Banking: Key Driver for Inclusive Growth’. In his address, Dr. Chakrabarty pointed out that as per figures published by the National Sample Survey Organization (NSSO) in 2008, 45.9 million farmer households out of a total of 89.3 million households do not have access to credit either from the institutional or non-institutional sources and that as of NSSO’s 2007 figures, a single branch caters to the banking needs of a population of about 16,000 [2]. He also pointed out that for every 100 persons, there are only 17 credit accounts and 54 saving accounts with all institutions put together. Commenting on the sources of loans, Dr. Chakrabarty added that of the people having annual income less than Rs.50,000 (USD 1100), only 28.3 percent had bank accounts, with just 13 per cent availing loans from the banks and 53 per cent people still taking loans from the institutional and non-institutional sources only for emergency purposes. He pressed that the above facts underscore the ‘urgent need’ for extending the banking and financial services to every part of the country for achieving the objective of inclusive growth and that the recent focus of the RBI has been on providing access to affordable banking services to every person.

Though the Indian economy achieved high growth during 2003-04 to 2007-08, it could not bring down unemployment and poverty to tolerable levels, he noted. The latest seventh survey by the NSSO reveals that the growth rate of employment increased from an annual 0.98 percent in the period 1993-94 to 1999-00 to 2.89 percent in the period 1999-2000 to 2004-05 [2]. Also, the poverty ratio has been declining during the recent period, down from 36 percent in 1993-94, but it still continues to remain at a very high level of 27.5 percent in 2004-05. Stressing on the need for inclusive growth by encompassing the hitherto excluded population, Dr. Chakrabarty stated that the concept of ‘inclusion’ should be seen as a process of including the excluded as agents whose participation is essential in the very design of the development process, and not simply as ‘welfare targets of development programs’.

Focusing on the country’s microfinance sector, Dr. Chakrabarty said that ‘since micro finance has been accepted as the main vehicle to address the issue of lending to small borrowers dispersed over vast expenses of geographical areas involving high transaction costs and also as a business opportunity, it would be worthwhile to devote some time to this’ [1]. Currently, Indian Small-scale industries (SSI) have a share of over 40 percent of the gross industrial value added in the economy. About 44 percent of the total manufactured exports of the country are directly accounted for by the SSI sector. In terms of employment generation, this sector is next to the agriculture sector, employing approximately 29.5 million people [1].

Several constraining factors of inclusive growth in India were also discussed by Dr. Chakrabarty, including the high operational cost for serving remote areas, the small size of loans, the languages and modes of communication and the idea of proving loans based on just credit flows and not basing on anything else. Dr. Chakrabarty mentioned that with the arrival of technology and Governmental developmental programs in India, realization that the poor are bankable with good business prospects and extending the banking services to everyone in the country will be the key driver to economic development in India.

With a doctorate in statistics, Dr. Chakrabarty started his career in teaching and research at the Benaras Hindu University and later went on to have a long career of 26 years at the Bank of Baroda in India at various capacities. He was posted as Chief Executive overseeing the bank’s United Kingdom operations between 2001 and 2004 before being elevated as Executive Director of the Punjab National Bank in 2004. He held the posts of Chairman and Managing Director of Indian Bank and Punjab National Bank and Chairman of the Indian Banks’ Association before taking charge as Deputy Governor in the Reserve Bank of India [3].

The Reserve Bank of India is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Though originally privately owned, the RBI has been fully owned by the Government of India since nationalization in 1949. Its main objectives are to regulate and supervise the financial system, manage exchange control, issue currency and cater to the banking needs of the Government and other banks in the country [3].

By Bharathi Ram, Research Assistant

Bibliography:

[1] The Reserve Bank of India, Speech by Dr. Chakrabarty,  http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=432

[2] Government of India, Ministry of Statistics and Program Implementation, http://www.mospi.gov.in/mospi_nsso_rept_pubn.htm

[3] The Reserve Bank of India, http://www.rbi.org.in/

[4] Bank of Baroda, www.bankofbaroda.com/

As per information available, the Ministry has started a project to issue special ID cards for disabled people in the country, with the cards carrying the universal logo of a disabled person and wheel chair. It is, however, unclear if this project is also an initiative under the micro-credit scheme in discussion. Reports indicate that these ID cards would facilitate the disabled to claim concessions on traveling fares of Pakistan International Airlines and Pakistan Railways in addition to free medical treatment in public sector hospitals and benefits in other undisclosed schemes. As per information available in a press release on The News, another Pakistan news portal, a 50 per cent concession in fares in all modes of travel – air, rail or road – for disabled persons would be implemented in Pakistan within the next three months [8]. No further information on the microcredit scheme is currently available in the public domain.

Disability is a dimension of poverty which on the whole remains quite neglected [2], with very few disabled persons having access to microfinance, says the World Bank [3]. A 2005 research paper by microfinance researcher/ consultant Roy Mersland and commissioned by the Norwegian development organization, Atlas Alliance, titled ‘Micro-credit for Self Employed Disabled Persons in Developing Countries’, is suggestive of the fact that there exists a disconnect between the microfinance community and the disabled population in terms of information and knowledge. The research states that advocates of micro-credit for persons with disabilities seem not to be informed on how micro-credit works, whereas the microfinance community lacks information on disability issues and how to better serve the segment [4]. Further insight is offered by Joshua Goldstein, Principal Senior Director, Center for Financial Inclusion at ACCION International, in his blog where he says that training loan officers to cater to a diverse client base with different forms of disability and with varying degrees of impairment is a key challenge for MFIs serving disabled people [7].

According to a publication on id21- a development research and knowledge service enabled by the UK Government Department for International Development and hosted by the Institute of Development Studies, at the University of Sussex, UK – there is very limited internationally-comparable data on the rate and distribution of impairment and disability. Further, national-level data is also often unreliable and out of date, particularly in developing countries [6]. Available information indicates that about 10 percent of a given population can be defined as disabled, with nearly 80 percent of them living in developing countries, according to a 2002 World Bank study. Further, up to as many as one of every six of the poor can be categorized as disabled [p9, 4]. In Pakistan, according to the 5^th National census conducted in 1998, nearly 2.5 percent of its total population is disabled, with nearly 2.2 percent of the total female population suffering from some form of disability [5]. (The 6^th national census was scheduled to take place in late 2008, the results of which do not appear to have been published in the public domain yet). Please look up here for an exhaustive list of MicroCapital’s past features on microfinance in Pakistan.

By Bharathi Ram, Research Assistant

Bibliography:

[1] The Nation, August 11 2009, Micro-credit Scheme for Disabled on the Cards, http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Regional/Islamabad/11-Aug-2009/Micro-credit-scheme-for-disabled-on-cards

[2] Inclusion of Disabled People in Mainstream Microfinance, by Sarah Dyer, http://74.125.95.132/search?q=cache%3AudWwB12O2J4J%3Awww.research4development.info%2FPDF%2FOutputs%2FChronicPoverty_RC%2FDyer.pdf+microfinance+for+disabled&hl=en&gl=us

[3] World Bank. Disability, Microfinance and Disability, PSD Forum 2006, http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALPROTECTION/EXTDISABILITY/0,,contentMDK:20868371~menuPK:282704~pagePK:64020865~piPK:149114~theSitePK:282699,00.html

[4] Micro-credit for Self Employed Disabled Persons in Developing Countries, by Roy Mersland, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=970519

[5] Asia Pacific Development Center on Disability, http://www.apcdproject.org/countryprofile/pakistan/pakistan_stat.html

[6] id21, Poverty and Disability: Breaking the Vicious Cycle through Inclusion, http://www.id21.org/insights/insights46/insights-iss46-art06.html

[7] ACCION Center for Financial Inclusion Blog, The Disabled Poor, by Joshua Goldstein, http://centerforfinancialinclusionblog.wordpress.com/2009/08/07/the-disabled-poor/

[8] The NEWS, Disabled People to pay Half-fares throughout Pakistan, http://www.thenews.com.pk/daily_detail.asp?id=189585

]]> http://www.microcapital.org/microcapital-story-pakistan-ministry-of-social-welfare-and-special-education-to-introduce-micro-credit-scheme-for-disabled/feed/ 0 http://www.microcapital.org/microcapital-story-international-finance-corporation-ifc-to-assist-four-microfinance-institutions-mfis-in-central-asia-to-accept-deposits/?utm_source=rss&utm_medium=rss&utm_campaign=microcapital-story-international-finance-corporation-ifc-to-assist-four-microfinance-institutions-mfis-in-central-asia-to-accept-deposits http://www.microcapital.org/microcapital-story-international-finance-corporation-ifc-to-assist-four-microfinance-institutions-mfis-in-central-asia-to-accept-deposits/#comments Wed, 12 Aug 2009 05:02:39 +0000 Bharathi Ram http://www.microcapital.org/?p=3601 The International Finance Corporation (IFC), the private sector lending arm of the World Bank, is assisting four microfinance institutions (MFIs) in Central Asia to transform into banks or deposit-taking organizations [1], according to a press release issued by the IFC [1]. The IFC initiative, billed as the ‘Azerbaijan and Central Asia Microfinance Transformation Support Project’, is expected to help the four MFIs become more sustainable, expand their range of services and also help boost access in underserved communities in the region [1]. The MFIs benefiting from the Project are IMON International and Arvand in Tajikistan, Bai Tushum in Kyrgystan and Credagro in Azerbaijan. Aside of the implementation of microfinance best practices and transformation plans, IFC’s support also includes advisory services package in institution-building, developing a corporate strategy, and mentoring of senior management.

‘Explosive growth over the past few years’ of the aforementioned MFIs has been cited as the factor necessitating the need for the IFC transformation project. As per the IFC release, there is a need for the ‘intensive growth’ of these MFIs to be complemented with ‘improved financial management, risk management, internal audit and control, and investor relations’. In the words of the IFC Senior Operations Officer for Investment

Climate Advisory Services in Europe and Central Asia, Mr. Rolf Behrndt: ‘The well-managed growth of these microfinance institutions will allow them to expand greatly the access to finance for underserved communities, especially in rural areas, and thus raise standards of living and improve lives’.

Centered in Almaty and supported with funds from the Ministry of Economic Affairs of the Netherlands and the IFC, the Microfinance Transformation Support Project has been in effect since 2008 in the Azerbaijan, Tajikistan, Kyrgyz and Kazakhstan regions [2]. As per information on the IFC website, the Project focuses on and assists those institutions that wish to transform their activities from being traditionally credit based to being able to provide their customers with a broader range of financial services, including the acceptance of deposits [2]. According to Mr. Behrndt, the initiative is a ‘part of IFC’s global strategy to support commercial viability of microlending organizations’ [1]. Per information available, IFC targets ‘top MFIs with good management, an established business, and which do not require significant intensive levels of support for their existing operations’. The IFC requires participating organizations to typically meet the following three criteria – a willingness to transform; a willingness to contribute fees for advisory services and currently a client for IFC investments or the potential to become one. Presumably, all four MFIs in discussion are IFC investment clients.

The IFC’s investments in IMON include a USD 2.5 million debt facility in May 2008 to develop IMON’s funding base and also to provide support in anticipation of its transformation plans. As of June 2009, the transformation project had provided corporate advisory services to IMON and had also facilitated investor negotiations to help IMON to change its status from a non-profit to a for-profit limited liability company [2]. In the case of Bai Tushum, in addition to a USD 1.2 million loan in 2005, the IFC had also provided a USD 4 million loan in 2009 to finance micro and small entrepreneurs in urban and rural Kyrgyzstan through individual and group lending products. The transformation project is aiding Bai Tushum to start taking deposits and has reportedly provided the management board with corporate and strategic advisory services on its equity raising efforts [2]. MicroCapital has extensively covered IFC’s past investments with Bai Tushum; for complete details, please refer to this April 2009 MicroCapital story [3].Credagro is also an IFC investment client, with a USD 6.0 million loan and a USD 4.0 million subordinated convertible loan in 2008 to finance micro, small, and medium enterprises throughout Azerbaijan. The transformation project has also reportedly provided the Credagro senior management with assistance in specifying and implementing its credit risk management unit, as well as in investor relations and negotiations [2]. No information on IFC’s investments in the Tajikistan MFI Arvand is currently available in the public domain.

IMON is an MFI based in Tajikistan offering micro-loans, leasing, training and consulting services. Established in 1999 as the National Association of Business Women of Tajikistan (NABWT), in partnership with Mercy Corps International, a US-based international refugee organization, IMON targets small and medium enterprises in an effort to promote economic development and poverty alleviation in the region. Total assets as of 2008 stood at USD 33 million and the total loan portfolio was approx USD 30 million with 26,661 active borrowers. Return on assets was 11.67 percent and return on equity stood at 36.24 percent. The 2008 debt to equity ratio was 2.79 [4].

Very limited information on Arvand is available currently in the public domain. Arvand also does not appear to have a web presence. Per limited information available, the organization was established in October 2008 by MicroInvest, an MFI in Tajikistan, in association with Frontiers LLC, a microlending company based in Bishek, Kyrgyzstan [5].

Bai Tushum was established in 2000 to provide financial, consulting and technical assistance services to micro-, small and medium enterprises in the Kyrgyz Republic [3]. As of 2008, Bai Tushum had assets of USD 53 million and a gross loan portfolio of USD 35 million with 18,930 active borrowers [6]. Return on assets was 5.76 percent and return on equity stood at 34.78 percent with a debt to equity ratio of 5.50 [6]. The MIX has awarded Bai Tushum a five-diamond rating from for disclosure, the highest rating available [6]. The Kyrgyz Republic joined the IFC in 1993 and the IFC has since committed almost USD 75 million to the country, including USD 5 million in advisory services focused on microfinance, housing finance, corporate governance, and business environment [3].

CredAgro is a non-governmental, non-profit lending organization based in Baku, Azerbaijan that provides access to working capital and investment loans to the agricultural sector. As of December 31, 2008, CredAgro had 13,773 active borrowers, a gross loan portfolio of USD 50.3 million, and total assets of USD 58.9 million.  As of the same date debt-to-equity was 421.28 percent, ROE was 42.66 percent, and ROA was 8.01 percent.  The MIX has awarded CredAgro a five-diamond rating from for disclosure, the highest rating available [7]. As recently reported by MicroCapital, CredAgro, along with two other MFIs, account for over half of Azerbaijan’s microfinance portfolio [8].

The International Finance Corporation is a member of the World Bank Group and was created in 1956 to foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments [9]. Its net worth at the end of 2008 was USD 18.3 billion [9, 10]. Microcapital has extensively covered the IFC’s contribution towards the microfinance sector; a list of our coverage on the IFC is available here.

By Bharathi Ram, Research Assistant

Bibliography:

[1] International Finance Corporation, Press Release, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=69346F6F7DA237608525760A0057A118

[2] International Finance Corporation, Azerbaijan and Central Asia Microfinance Transformation Support Project, http://www.ifc.org/ifcext/eca.nsf/Content/Azerbaijan_AdvisoryProjects?OpenDocument&ExpandSection=1%2C4#_Section1

[3] MicroCapital Story, IFC invests in Bai Tushum, http://www.microcapital.org/microcapital-story-international-finance-corporation-ifc-invests-usd-4-million-into-kyrgyz-microfinance-institution-bai-tushum/

[4] MIX Market, IMON, http://www.mixmarket.org/mfi/imon/data

[5] Kiva.org: http://www.kiva.org/app.php?page=businesses&action=about&id=122476

[6] MIX Market, Bai Tushum, http://www.mixmarket.org/mfi/bai-tushum/data

[7] MIX Market, Credagro, http://www.mixmarket.org/mfi/credagro-nbco/data

[8] Microcapital Story, IFC helps Credagro Improve Corporate Governance, http://www.microcapital.org/microcapital-story-international-finance-corporation-helps-acdivoca%E2%80%99s-credagro-in-azerbaijan-improve-corporate-governance/

[9] International Finance Corporation: http://www.ifc.org/

[10] International Finance Corporation, 2008 Annual Report: http://www.ifc.org/ifcext/media.nsf/Content/AR2008

This investment by IFC follows a press release early last week that the Polish Financial Supervision Authority (PFSA) had ‘granted permission for the establishment of FM Bank’ [2].(PFSA is the Polish supervisory body in-charge of banking, capital markets, insurance, pension schemes and electronic money institutions). Per information available in the website of the European Monitoring Center on Change (EMCC), the FM Bank would focus on the development of small and medium-sized enterprises in Poland and in Central Europe [3].  In this regard, the release also quotes the acting President of FM Bank, Mr. Henryk Pietraszkiewicz, as saying that the bank’s focus would be on ‘providing tailored service and products for micro and small entrepreneurs’. FM Bank does not appear to have a web presence as yet nor is much information on the bank currently available in public domain. However, as per initial information available on Polish information portal, Polish Market Online, FM Bank is expected to be financed by the Abris private equity fund which is based in Poland [14]. FM Bank is also expected to operate a network of 62 branches around the country by the end of the year with a workforce of 400, as per information from the EMCC [2]. (The EMCC is an information resource established in 2001 to promote an understanding of how to anticipate and manage change. It was set up within the Eurofound, a European Union body dedicated to better living conditions in Europe, with the full support of the European Parliament, the European Commission and other social partners [4,5]). No further information on the establishment of FM bank is currently available.

Fundusz Mikro, the MFI responsible for the new bank, was founded in 1994 by the Polish-American Enterprise Fund, which invested USD 20 million of loan capital [7]. In addition, a USAID grant had also covered its initial operating costs. As of August 2008, the MFI had disbursed a total of USD 405 million to a total 51929 clients [8]. Total assets as of 2008 stood at USD 49 million, with a capital to asset ratio of 33.19 percent and a debt to equity ratio of 2.01 [6]. Its total value of balance outstanding as of August 2008 was (approx) USD 53 million [8]. Fundusz Mikro operates through 38 branches located in cities throughout Poland.

The microcredit market in Poland accounts for 29 percent of low-income households comprising up to 1.98 million low-income micro-enterprises, according to a 2007 analysis in the MicroFinance Center (MFC) Newsletter titled ‘Microfinance in Central and Eastern Europe and the New Independent States’. (The Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States is an international, grass-root network comprising of over 90 microfinance institutions from the region [11]). The MFC analysis also indicates the need for linking specialized non-bank financial institutions in Poland with commercial and cooperative banks [10]. Per information available in an EBRD press release, a recent European Union sponsored study estimates that ‘only 3 percent of registered micro and small enterprises [are] financed by the formal financial sector’ [9]. According to the study, ‘there remains a large demand for micro finance in Poland’. In this regard, Mr. Pietraszkiewicz states that Poland has ‘a diverse and active micro-enterprise sector but it is not well served by traditional banks’. He was also quoted as saying that the FM Bank wanted to ‘change that’.  For more on the Polish microfinance sector, please look up Microcapital’s past stories available here.

Created in 1956 and based in Washington, DC, the International Finance Corporation, a member of the World Bank Group, fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments [12]. Its net worth at the end of 2008 was USD 18.3 billion [12, 13]. Microcapital has extensively covered the IFC’s contribution towards the microfinance sector; a list of our coverage on the IFC is available here.

By Bharathi Ram, Research Assistant

Bibliography:

[1] Microfinance Focus, IFC to invest in FM Bank, http://www.microfinancefocus.com/news/?p=579

[2] Eurofund, FM Bank Fact Sheet, http://www.eurofound.europa.eu/emcc/erm/static/factsheet_14157.htm?template=searchfactsheets

[3] Eurofund: http://www.eurofound.europa.eu/about/index.htm

[4] EMCC: http://www.eurofound.europa.eu/emcc/about.htm

[5] International Leaders’ Forum on Development Finance, Fundusz Mikro, http://docs.google.com/gview?a=v&q=cache%3AOlk5u2O8L7QJ%3Awww.dfforum.com%2Fpdf%2FFundusz_Mikros.pdf+fundusz+mikro+bank&hl=en&gl=us&pli=1

[6] MIX Market, FM, http://www.mixmarket.org/mfi/fundusz-mikro/data

[7] Fundusz Mikro: http://www.funduszmikro.pl/about_fundusz_mikro.php

[8] Fundusz Mikro, Annual Results, http://www.funduszmikro.pl/results.php

[9] EBRD Press Release: http://www.ebrd.com/new/pressrel/2009/090205a.htm

[10] MFC Newsletter, Microcredit Market in Poland, http://docs.google.com/gview?a=v&q=cache:Lvb4H_PPL8AJ:www.european-microfinance.org/data/file/microcredit-market-in-poland-(2).pdf+poland+microfinance&hl=en&gl=us

[11] Microfinance Center for CEE and NIS: http://www.mfc.org.pl/

[12] International Finance Corporation: http://www.ifc.org/

[13] International Finance Corporation, 2008 Annual Report: http://www.ifc.org/ifcext/media.nsf/Content/AR2008

[14] Polish Market Online, PFSA approves the start up of FM Bank, http://www.polishmarket.com.pl/document/:20787,PFSA+approves+the+start+up+of+FM+Bank.html

While the Indian microfinance market has grown to more than USD 1 billion in outstanding assets of MFIs [9], estimates of the potential size of the Indian microfinance market range from USD 15 billion to USD 30 billion [9]. Private equity investments into the microfinance sector in India started from January 2007 [8]. According to Aavishkaar Goodwell, a development company providing equity financing to MFIs in India, USD 500 million in private equity over the next five years is necessary to facilitate the growth of MFIs in India [6]. Of the 50 private equity deals worth USD 1 billion in the banking and finance sector in India over the last 18 months, it is estimated that MFIs alone have accounted for 20 deals amounting to USD 200 million [1]. As of June this year, 11 such deals amounting to a total USD 178 million in the microfinance sector occurred in the financial year 2009 alone [8], according to a news release on the Indian financial news portal, the Financial Chronicle. While investors typically have their own set financial benchmarks, the IRR (Internal Return Rate which is used to measure and compare the profitability of investments) in the MFI space is 25-30 percent, as per information in the press release [1].

VC/ PE players have sounded encouraging on the possible foray of their respective firms into the microfinance space. Mr. Harish Gandhi, executive director of the venture fund Cannan Partners, says ‘We are actively looking at the MFI space and if there is a suitable opportunity, we would invest in this sector’ [1]. Cannan Partners does early stage investment, primarily focusing in healthcare and technology and has offices in India, Israel and the United States [3]. Mr. Sameer Mehta, director of Atlas Advisory, who states that ‘many’ venture capitalists are now ‘excited’ about investing in the microfinance space also opines, ‘Many [Indian] MFIs, especially south-based ones have the right professionals and processes in place’ [1]. Atlas Advisory’s focus sectors include Clean Technology, Healthcare, Nanotechnology and Financial/ Consulting Services among others [4]. As per a July 2009 report on the Indian Business news portal LiveMint.com, VC firms like Norwest Venture Partners, Mayfield Fund and Lightspeed Venture Partners have ‘already declared their keen interest in the [MFI] space’ [10].

A LiveMint report states that with the rise in investor interest, valuations of MFIs have also increased. It is estimated that most MFIs are now raising funds at approximately 10 times their earnings while many are doubling earnings annually [10]. This rise in valuations has also been projected as one of the reasons why many funds have stayed away from this field. In this regard, the managing director of Lightspeed Venture Partners, Mr. Bejul Somaia says: ‘Even though we really like the [microfinance] sector, the reason we have not invested is that we find the valuations to be high relative to the risks we see and also relative to the valuations of other companies which serve the unbanked or credit deprived segment’ [10].

Some India based microfinance focused funds primarily investing in MFIs include Aavishkaar India Microventure Capital Fund and Bellwether Microfinance Fund. Aavishkaar’s recent investments include a July 2009 equity investment worth INR 45 million (approx USD 1 million) in Suryoday Microfinance, a Pune-based non-banking finance company (NBFC), engaged in ‘providing loans to women from economically weaker sections’ [5]. Other recent investments by Aavishkaar include a USD 9.87 million in the Hyderabad based MFI, Bhartiya Samruddhi Finance Ltd (BSFL) in May 2009 [6]. Amongst Bellwether’s latest investments include a USD 479,600 equity investment in Equitas Micro Finance India, a Chennai based microfinance institution (MFI), in May 2009 [7]. The largest commercial funder of microfinance in India is the ICICI bank which is also the second largest bank in the country with total assets worth USD 75 billion (as of March 2009) [9, 11]. It is expected that by 2010 ICICI’s microfinance lending portfolio would be around USD 10 billion [9].

By Bharathi Ram, Research Assistant

Bibliography:

[1] Times of India, VC/ PEs bet on microfinance, http://timesofindia.indiatimes.com/NEWS/Business/India-Business/VC/PEs-bet-on-micro-finance/articleshow/4844292.cms

[2] India PR Wire, Aavishkaar Goodwell Invests INR 45 million in Suryoday Microfinance, http://www.indiaprwire.com/pressrelease/financial-services/2009071629507.htm

[3] Atlas Advisory: http://atlasadvisory.org

[4] Canaan Partners: http://www.canaan.com/

[5] Suryoday Microfinance: http://suryodaymf.com/

[6] MicroCapital Story, Bhartiya Samruddhi Finance Ltd Raises USD 987m in Capital, http://www.microcapital.org/microcapital-story-bhartiya-samruddhi-finance-ltd-a-unit-of-basix-group-raises-usd-987m-in-capital/

[7] MicroCapital Story, Bellwether Microfinance Fund invests 480k in Equitas Micro-finance, http://www.microcapital.org/microcapital-story-bellwether-microfinance-fund-invests-480k-in-equitas-micro-finance-india/

[8] Financial Chronicle, Microfinance Funds Await Better Cash Flow, http://www.mydigitalfc.com/personal-finance/microfinance-funds-await-better-cash-flow-867

[9] Aavishkaar Goodwell, http://www.aavishkaargoodwell.com/what_we_do.php

[10] LiveMint.com, Microfinance’s small town success attracts Venture Investors, http://www.livemint.com/2009/07/13221413/Microfinance8217s-smalltow.html?pg=1

[11] ICICI Bank, http://www.icicibank.com/pfsuser/aboutus/overview/overview.htm

BBSB is reportedly the first bank dedicated to serving the needs of micro and small businesses in Belarus. It formally received its banking license in August of 2008 and was founded by the FMO, The European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), Kreditanstalt fur Wiederaufbau Banking Group (KfW), Swedfund (a Swedish risk capital company), Commerzbank in Germany and Shorebank/ Shorecap. The press release of BBSB’s officially opening on Oct 6, 2008 was also covered by Microcapital [2]. BBSB’s main goal is to develop a program of micro-lending for small and medium-sized businesses and the acquisition of necessary instruments for the bank’s infrastructure development. Services offered include loans in Belarusian rubles, US dollars and euro; deposits, bank accounts, cash management services and operations with foreign currency. The bank has so far opened two offices in Minsk, which reportedly houses over 50 percent of the country’s small businesses [3]. It also has one office in the Grodno region of Belarus with plans to open three more this year [1].

Since its opening in October 2008, the BBSB has reportedly issued loans to more than 580 small businesses totaling about USD 6.6 million. According to the release, the bank’s lending to the private sector of the Belarusian economy has also been on the rise [1]. A December 2008 press release on the EBRD website states that BBSB loans are offered ‘on a purely commercial basis which will range from as little as  USD 270 to USD 270,000 but would be concentrated on the lower end of the market where there is a strong need for loans of below USD14,000’ [7]. Per currently available information, the maturity of these loans would ‘mainly be up to one year’ [7]. In December of 2008, BBSB had also received a five-year loan commitment of USD 5 million from EBRD [1] to help kick-start the bank’s micro and small business financing activities and to reach out to micro entrepreneurs and small businesses, especially in the regions outside of Minsk. Founded in 1991 and headquartered in London, the EBRD has dedicated USD 1 billion to microfinance since 2007 through debt, equity facilities, and technical assistance [9]. It is estimated that the EBRD has provided more than EUR 14.8 billion (estimated USD 20.6 billion) through its small business lending programs to support micro, small and medium-sized enterprises [10].

Currently, there are 215,000 micro and small businesses (MSEs) estimated to be active in Belarus [4] and the EBRD estimates the total demand for small business lending in Belarus to be USD 1.4 billion [5]. However, only 15 percent of Belarus’ demand for microfinance is being met now, according to a publication on the Belarusian Economy magazine titled ‘Microfinance in Belarus’ [6]. Although some prerequisites for microfinance (including mechanisms for individual and group micro-lending and legal framework for regulation) have been set up in the Republic of Belarus, several problems still plague the Belarus microfinance sector. Challenges include the fact that the banking sector which mainly provides microcredit in Belarus has a very limited representation in rural areas and credit cooperation in the form of financial consumer institutions is underdeveloped [6]. Additionally, according to the publication, the country also lacks support infrastructure in terms of rating agencies, specialized bookkeeping or audit services and educational centers that could improve microfinance quality. Low financial, legal and economic awareness of the public, especially in rural areas are also indicated as factors posing challenges to the country’s microfinance sector [6].

The Netherlands Development Finance Company (FMO), one of the founding organizations of the BBSB, is a public-private development bank established in 1970 by the Dutch government. It has both the Dutch State and large Dutch banks as its major shareholders, with the Netherlands government holds a controlling stake of 51 percent in the bank [1]. As of 2008, the FMO had total assets of EUR 3.6 billion and a loan portfolio of EUR 1.7 billion [11]. In 2007, USD 287 million was allocated to microfinance investments [8].

By Bharathi Ram, Research Assistant

Bibliography:

[1] Belarus Telegraph Agency, ‘FMO opens USD 5 million credit line to BBSB’, http://www.belta.by/en/news/econom?id=404311

[2] MicroCapital Story, ‘FMO supports first Belarusian Bank for Micro and Small Businesses’, http://www.microcapital.org/press-release-fmo-supports-first-belarusian-bank-for-micro-and-small-businesses/

[3] EBRD, ‘Country Profile: Belarus’, http://www.ebrd.com/pubs/factsh/country/belarus.pdf

[4] EBRD Press Release, June 2009, ‘EBRD lends USD 10 million to Minsk Transit Bank’, http://www.ebrd.com/new/pressrel/2009/090623.htm

[5] EBRD, http://www.ebrd.com/pubs/factsh/country/belarus.pdf

[6] Belarusian Economy, ‘Microfinance in Belarus’, http://74.125.47.132/search?q=cache:2ezMWMD82I8J:econ.belta.by/econom_eng.nsf/all/5C6EB3310C097B494225748200496585/%24File/58-65.pdf+belarus+microfinance&cd=3&hl=en&ct=clnk&gl=us

[7] EBRD Press Release, ‘First EBRD loan for BBSB’, http://www.ebrd.com/new/pressrel/2008/081217b.htm

[8] MIX Market, ‘FMO’, http://www.mixmarket.org/funders/fmo/structure

[9] Microcapital Story, ‘EBRD invests over USD 1 billion in Microfinance Initiatives since 2007’, http://www.microcapital.org/microcapital-story-european-development-finance-institutions-part-1-european-bank-for-reconstruction-and-development-ebrd-invests-over-usd-1-billion-in-microfinance-initiatives-since-2007/

[10] EBRD, Fact Sheet, http://www.ebrd.com/pubs/factsh/themes/sme.pdf

[11] FMO, Annual Report 2008, http://www.fmo.nl/FMO/documents/AR/FMOAR08.pdf

Attending the signing ceremony of the MoU at Karachi in Pakistan, Mr. Salim Raza, the Governor of the SBP, expressed hope that the grant facility would help TMFB launch branchless banking operations and help build its institutional capacity [1]. In November 2008, MicroCapital reported that TMFB had 27 branches with many of its borrowers living in rural areas. Given long distances people had to travel to perform even the most routine banking transactions, TMFB had resorted to mobile banking as a primary way to reach its rural customers. In 2007, TMFB was also named as one of Consultative Group for the Poor’s (CGAP) nine technology partners [6].  As part of the partnership, CGAP staff provided technical advice and operational guidance to help Tameer Bank implement the use of cards and point-of-sale devices to complete financial transactions. For more information on CGAP’s nine technology picks, please look up this 2007 MicroCapital story.

The Governor’s note on branchless banking is consistent with the Government of Pakistan’s recognition and general support of branchless banking models as a way to increase access to financial services [5]. According to the CGAP article ‘Regulation of Branchless Banking in Pakistan’, both the SBP and the Pakistan Ministry of Information Technology (MoIT) ‘support opening up space for branchless banking’. Owing to the interest of Pakistani policymakers and private operators (banks and mobile network operators) in branchless banking, Pakistan was also one among the seven countries selected by CGAP for a series of pilot diagnostics on branchless banking. In keeping with the Government’s efforts, the Banking and Policy Regulations Department of the SBP had also introduced a regulatory framework for financial institutions desirous to undertake branchless banking in Pakistan; the full text titled ‘Branchless Banking Regulations’ is available here. MicroCapital has extensively featured the growth, scope and challenges of the branchless banking models; a complete list of relevant stories can be found here.

In a series of efforts to boost the country’s microfinance sector, the SBP had also recently signed two other MoUs, one with the Pakistan Microfinance Network (PMN) and the other with the NRSP Microfinance Bank wherein the SBP agreed to provide a total of Rs 215 million under the ISF [2]. While the grant facility to the Pakistan Microfinance Network is expected to help its efforts to foster transparency and promote information exchange in the microfinance sector, the grant to the NRSP Bank will help develop a real time Management Information System (MIS) to accept deposits.

The ISF under which these grants are provided is a microfinance development fund launched by the SBP, with an objective to provide liquidity to microfinance providers in response to tighter liquidity conditions and a sudden spike in inflation. The ISF initiative is part of the USD 75 million Financial Inclusion Program (FIP), which is a joint venture between SPB and the UK Department for International Development. The ISF aims to increase the capacity of MFIs by providing grants for them to make advances in their human resources, management, governance, internal controls, business development, cost reduction mechanisms, product innovation, and technology implementation. The ISF is capped at USD1 million per year per recipient, and is subject to at least a 25 percent matching grant from the recipient [3].  The fund would primarily focus on institutions that are already regulated, or are in the process of seeking a license, or have solid plans for restructuring in the near future [3]. Per available information, MFIs may also be recipients of the grants several years in a row with good performance and resubmission of their proposal.

The State Bank of Pakistan was inaugurated by Mr. Muhammad Ali Jinnah, Pakistan’s first President, in 1946 as the central bank of Pakistan and was nationalized in 1974 [4]. The scope of the bank’s operations increased from its original mandate ‘to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage’ to its expanded mandate in 1956 to ‘regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilization of the country’s productive resources’ [3]. Total assets in 2008 were Rs 1.05 trillion (USD 13.3 billion) [4].  The SBP and the Government of Pakistan have set a goal increasing the number of microfinance borrowers to three million by the end of 2010, and to ten million by 2015, as documented in the national Microfinance Strategy adopted in 2007 [2].

Established in 2001, Tameer Microfinance Bank is a USD 20.3 million commercial microfinance bank in Pakistan. It was licensed by the State Bank of Pakistan under the Microfinance Ordnance 2001. As of March 2009, it had 118, 883 active clients and 57, 088 active borrowers. Total deposits amounted to Rs. 755 million (USD 9.1 million) and total loan disbursed stood at Rs. 3 billion (USD 36 million). As of 2008, its debt to equity ratio was 0.92, return on assets was -31.37 percent and return on equity stood at -77.43 percent [7].

By Bharathi Ram, Research Assistant

Bibliography:

[1] Business Recorder, SPB signs MoU with Tameer Bank http://www.brecorder.com/index.php?id=944003&currPageNo=1&query=&search=&term=&supDate=

[2] Microfinance Focus, SBP signs MoUs to boost Pakistan Microfinance Sector http://www.microfinancefocus.com/news/?p=313\

[3] MicroCapital Story, ‘State-Bank-of-Pakistan-launches-three-microfinance-development-funds-with-proceeds-from-the-UK government-financial-inclusion-programme-and-the-asian-development-bank ‘, http://www.microcapital.org/microcapital-story-state-bank-of-pakistan-launches-three-microfinance-development-funds-with-proceeds-from-the-uk-government-financial-inclusion-programme-and-the-asian-development-bank/

[4] State Bank of Pakistan, http://www.sbp.org.pk

[5] Prudential Regulations for Branchless Banking, http://docs.google.com/gview?a=v&q=cache:D1RsiUjE64YJ:www.cgap.org/gm/document-1.9.2304/PKNotes_RegulationBranchless_2007.pdf+Prudential+Regulations+for+Branch-less+Banking&hl=en&gl=us

[6] MicroCapital Story, CGAP Announces 9 Technology Picks, http://microcapitalmonitor.com/cblog/index.php?/archives/650-CGAP-Announces-Its-9-Technology-Picks.html

[7] MIX Market, http://mixmarket.org/mfi/tmfb/data

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