The Islamic Business and Finance Network (IBF Net), a global network of students, researchers, and finance professionals, and its Institute of Microfinance and Development together with Islamic Relief Worldwide, an international development and relief organization, held an international training program and workshop to discuss the nuances of Islamic microfinance was recently held in New Delhi.    The program was attended by over sixty participants from the corporate sector, NGOs, and academics from India, Bangladesh, Sri Lanka and Afghanistan. Continue Reading »

The Nigeria Police Force Microfinance Bank Plc (NPFMB), posted gross earnings of N943m, approximately USD 8 million, representing 48 percent growth over last year’s earnings.  Total assets increased by 8.4 percent to N4.6 billion, or USD 39.5 million and loans and advances grew by 12.8 percent.  The bank announced a dividend of N146 million, or USD 1.24 million, representing 51 percent of after tax profit. Continue Reading »

The Development Bank of Namibia (DBN) launched the Microfinance Support Framework to serve as a funding mechanism aimed at providing loans to organizations that support development through inexpensive microcredit. DBN was established in 2002 through an Act of Parliament with the goal of improving citizens’ welfare and quality of life through increased economic activity and improved infrastructure.  Through this framework, N$42 million, approximately USD 4.1 million, will be made available to credible microfinancing institutions to extend their products countrywide.  Namibia’s President Hifikepunye Pohamba described the framework as an important initiative that falls directly in line with the DBN Act.  Pohamba encouraged the business community to be more innovative in its approach, cautioning that, “It makes little sense for all of us to be shebeen owners,” referencing the country’s bars or pubs. Continue Reading »

The Governor of the Central Bank of Nigeria (CBN), Charles Soludo, said in Lagos on Tuesday that only 12 out of 36 states in the country have contributed to microfinance activities in their states to the tune of N12.08 billion, approximately USD 1.26 million.  The governor of the apex bank who was speaking at the launch of Enhancing Financial Innovation and Access (EFINA), a nongovernmental organization, named the states (rank by population) as Zamfara (21), Delta (12), Lagos (2), Ekiti (29), Kebbi (23), Kwara (30), Ondo (18), Kogi (20), Cross River (27), Benue (9), Anambra (10), Osun (19) and Oyo (5).  Lagos state has disbursed N620 million, or USD 5.3 million, within one year through selected microfinance banks, Delta state has disbursed N600 million, approximately USD 5.1 million, through Oceanic Bank and some microfinance banks while Osun disbursed N99.78 million, approximately  USD 8.5 million, through the Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB). Continue Reading »

Ayala Corporation, the Philippines’ largest conglomerate, and two of its subsidiaries, inked a deal that will establish what it claims will be the Philippines’ first microfinance bank.  Ayala Corporation, Bank of the Philippine Islands (BPI), the country’s largest bank by market capitalization, and Globe Telecom, the country’s second largest telecommunications company, will form a new company that will extend wholesale microfinance loans to microfinance institutions (MFIs) and use mobile technology to reach retail customers.  The new company has authorized capital of P 500 million, approximately USD 10.2 million.  The group will use BPI’s wholly-owned subsidiary, Pilipinas Savings Bank, as the vehicle for the venture.  The closing of the deal is subject to approval by  the Bankgko Sentral ng Pilipinas (BSP), the central bank of the Philippines, and other regulators.  Ayala Corporation will retain a 20 percent stake and BPI and Globe Telecom will each retain a 40 percent stake. Continue Reading »

BBVA Microfinance Foundation, the microfinance arm of BBVA Group, a multinational financial services group, and BanCredito, the state owned bank formerly known as Cartago Agricultural Credit Bank,  have signed a collaboration agreement for an undisclosed amount to promote initiatives that would make credit and other financial products accessible to the most disadvantaged sectors of Costa Rica’s population and others in Central America.  “This alliance will result in important benefits for the development of Costa Rica’s microfinance sector, as both of our entities share common objectives: allow people who currently don’t have access to the traditional financial system to be able to establish small production activities that would help them improve their quality of life and that of their families in a sustainable manner,” BBVA’s Mendez del Rio said. Continue Reading »

Healthy borrowers repay loans.  That is the theory underlying Freedom From Hunger’s Microfinance and Health Protection Program.  Freedom From Hunger, an international development organization that is funded by a USD 5.6 million grant from the Bill and Melinda Gates Foundation, is taking a creative approach to reducing borrower default rates.  The company has found that when loans are not repaid, health care needs are often a principal reason.  Borrowers will use loan proceeds to pay for health care needs instead of for investing in their businesses.  In 2007, the Microfinance and Health Protection Program began offering borrowers discounted doctor visits, health care savings accounts, affordable medicine, and emergency health care loans in order to combat this problem. Continue Reading »

Equity Bank, the largest Kenyan bank with 48% of the nation’s bank accounts, has won the Best Micro Finance Bank in Africa award at the African Bankers Awards in Washington DC.  Other nominees for the award were ACCION  Microfinance Bank, Barclays, Development Bank of Mauritius, and Swazibank.  The event, the second of its kind, was hosted by London-based IC Publications, publishers of African Banker magazine and endorsed by the World Bank.  Sponsors included the African Development Bank,  3i Infotech, Ecobank, and the Bank of Industry.  Continue Reading »

International Finance Corporation (IFC), a member of the World Bank Group, signed an agreement, for an undisclosed amount, with First MicroFinanceBank Afghanistan (FMFB), part of the Aga Khan Agency of Microfinance, a unit of Aga Khan Development Network (AKDN) to strengthen the bank’s capacity to introduce a product line that will address the housing needs of low- and middle-income Afghans.  First MicroFinanceBank Afghanistan, established in 2003, was the first licensed microfinance bank in Afghanistan after the collapse of the Taliban regime.  The company had USD 27.2 million in loans outstanding in 2007. Continue Reading »