MicroCapital » Stefanie Rubin

MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases French Edition of 2009 Arab Microfinance Report

Stefanie Rubin — Fri, 30 Jul 2010 05:03:36 +0000

The Microfinance Information Exchange (MIX) in partnership with Sanabel, a nonprofit organization dedicated to advancing Arab microfinance, and CGAP (Consultative Group to Assist the Poor), an independent policy and research center housed at the World Bank Group, recently released the French edition of its 2009 Arab Microfinance Analysis and Benchmarking Report.

The report summarizes the performance of the microfinance sector in the Arab region. It contains information on 54 microfinance institutions (MFIs) in 10 Arab countries. It also contains trend data from 2006 to 2008 regarding 35 MFIs in the area. The English edition of the report is available on the MIX website.

By Stefanie Rubin, Research Associate

About Microfinance Information Exchange (MIX):

Established in 2002, Microfinance Information Exchange (MIX) is a nonprofit organization with headquarters in Washington, DC, and regional offices in Peru, Senegal, India and Indonesia. It operates a global, web-based, microfinance information platform. MIX provides detailed financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators and donor organizations and investors in microfinance. MIX Market currently provides data on approximately 1800 MFIs and 100 investors. MIX was founded by CGAP (Consultative Group to Assist the Poor) and is sponsored by Citi Foundation, Deutsche Bank Americas Foundation, International Fund for Agricultural Development (IFAD) and the Bill & Melinda Gates Foundation.

Additional Resources:

Source Article: The MIX Market: MIX Releases French Translation of its 2009 Arab Microfinance Report: http://www.themix.org/press-release/mix-releases-french-translation-its-2009-arab-microfinance-report

2009 Arab Microfinance Report in French: http://www.themix.org/publications/2009-arab-microfinance-analysis-benchmarking-report-french

2009 Arab Microfinance Report in English: http://www.themix.org/publications/2009-arab-microfinance-analysis-benchmarking-report

MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases 2009 Arab Microfinance Report with Focus On Microfinance Sector Crisis in Morocco: http://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-releases-2009-arab-microfinance-report-with-focus-on-microfinance-sector-crisis-in-morocco/

MicroCapital Universe. Microfinance Information Exchange (MIX). http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Information+Exchange+%28MIX%29

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MICROCAPITAL BRIEF: Microfinance Experts Express Concern Over Rapid Growth of Microlending by For-Profit Organizations in India

Stefanie Rubin — Fri, 30 Jul 2010 05:03:15 +0000

An article in the Financial Times titled, “Microfinancing Spreads Beyond India’s Grassroots,” discusses recent concerns raised by some microfinance experts surrounding the increase in microlending by profit-oriented companies in India.

The article claims that while Indian microlending originally began as a grassroots, nonprofit effort, it is now dominated by for-profit organizations.

“Many of these companies are suffering serious capital constraints, so they and their equity fund investors are closely watching SKS’s forthcoming initial public offering, hoping to follow in its footsteps…. [The World Bank] has warned that rapid expansion and heated market competition could come at the risk of sound credit management – which could lead to regulatory intervention that may choke the industry.”

By Stefanie Rubin, Research Associate

About SKS Microfinance

SKS Microfinance is an Indian microlender that delivers microfinance products through a group lending model to impoverished women in India. It is a for-profit non-banking finance company which converted to a public limited company in May 2009. Equity investors include Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. Its total assets as of March 31, 2009, were USD 596 million with 3.5 million active borrowers, and it reported return on assets of 3.68 percent and return on equity of 18.72 percent.

Additional Resources:

Source Article: The Financial Times: “Microfinancing spreads beyond India’s grassroots,” http://www.ft.com/cms/s/0/30f1632e-9418-11df-a3fe-00144feab49a.html

MICROCAPITAL BRIEF: Microloan Default Risk Rises in India as SKS Microfinance Plans Initial Public Offering (IPO): http://www.microcapital.org/microcapital-brief-microloan-default-risk-rises-in-india-as-sks-microfinance-plans-initial-public-offering-ipo/

MICROCAPITAL BRIEF: India’s SKS Microfinance Sets Price for Pending IPO, Offers Discount to Retail Investors: http://www.microcapital.org/microcapital-brief-india%E2%80%99s-sks-microfinance-sets-price-for-pending-ipo-offers-discount-to-retail-investors/

MicroCapital Universe: SKS Microfinance: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS…

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MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases, “Microfinance Funders Profiles – A Short Guide for Young and Small Institutions Still Looking for a Match,” by Adrian Gonzalez

Stefanie Rubin — Mon, 26 Jul 2010 16:24:23 +0000

Microfinance Information Exchange (MIX) Lead Researcher, Mr Adrian Gonzalez, recently authored a report published by MIX discussing the funding sources for microfinance institutions (MFIs) in the lowest quartile in terms of size, age, profitability and portfolio quality.

The report concludes that these MFIs are most likely to receive funds from local organizations “who are closest to the MFIs and thus have the best knowledge about them.” The report also notes that “small improvements in size, age, or profitability quickly increase the pool of potential funds.”

By Stefanie Rubin, Research Associate

About Microfinance Information Exchange (MIX):

Additional Resources:

Source Article: The MIX Market: “Microfinance Funders Profiles – A Short Guide for Young and Small Institutions Still Looking for a Match” by Adrian Gonzalez. http://www.themix.org/publications/data-brief-no-6-microfinance-funders-profiles

MicroCapital Universe. Microfinance Information Exchange (MIX). http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Information+Exchange+%28MIX%29

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MICROCAPITAL BRIEF: Dr Sanjay Sinha of M-CRIL Takes Issue with CGAP (Consultative Group to Assist the Poor)

Stefanie Rubin — Thu, 15 Jul 2010 05:03:28 +0000

Dr Sanjay Sinha, managing director at Micro-Credit Ratings International (M-CRIL), authored an article featured in Microfinance Focus in which he proposed changes to several of the ideas advocated by CGAP (Consultative Group to Assist the Poor), an independent policy and research center housed at the World Bank Group.

“CGAP needs to modify its conventional messages such as ‘zero tolerance of delinquency’ and ‘no restructuring of client loans’ in the context of emerging over-indebtedness and the financial crisis. It also needs to strengthen its messages in relation to governance, social mission and improving depth of outreach to the poor,” stated Dr Sinha. He also proposed that CGAP encourage greater product innovation, expand its mandate to include technical support initiatives and redesign the MIX Market, the microfinance information clearinghouse, in a manner that would engage local researchers and analysts in developing countries.

By Stefanie Rubin, Research Associate

About of Consultative Group to Assist the Poor (CGAP):

Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to providing financial access for the world’s poor. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

About the Microfinance Information Exchange (MIX):

Established in 2002, the Microfinance Information Exchange (MIX) is a nonprofit organization with headquarters in Washington, DC, and regional offices in Peru, Senegal, India and Indonesia. MIX provides detailed financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators and leading donor organizations and investors in microfinance. MIX was founded by CGAP (Consultative Group to Assist the Poor) and is sponsored by Citi Foundation, Deutsche Bank Americas Foundation, the International Fund for Agricultural Development (IFAD) and the Bill & Melinda Gates Foundation.

Additional Resources:

Source Article:

Microfinance Focus: How to calm the charging bull – An agenda for CGAP in the decade of the “teenies”: http://www.microfinancefocus.com/news/2010/06/15/how-to-calm-the-charging-bull-an-agenda-for-cgap-in-the-decade-of-the-%E2%80%9Cteenies%E2%80%9D/

MicroCapital Universe: CGAP: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+(Consultative+Group+to+Assist+the+Poor)

MicroCapital Universe: The Microfinance Information Exchange: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Information+Exchange+%28MIX%29

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MICROCAPITAL BRIEF: Microcredit Summit Campaign Issues Call for Institutional Action Plans (IAPs) to be Presented at 2011 Global Microcredit Summit

Stefanie Rubin — Thu, 15 Jul 2010 05:03:10 +0000

The Microcredit Summit Campaign, a project initiated in 1997 by the RESULTS Educational Fund, a US-based advocacy organization that aims to alleviate hunger and poverty, is requesting that each of its member institutions submit an Institutional Action Plan (IAP).

The IAPs are intended to serve as an opportunity for organizations to share their plans and accomplishments in the field of microfinance. They also promote the campaign’s two central goals for 2015: reaching 175 million of the world’s poorest families with microloans and ensuring that 100 million of those 175 million families rise above the USD 1 per day poverty threshold. The IAPs will be compiled in a report that will be presented at the 2011 Global Microcredit Summit in Valladolid, Spain, from November 14 to November 17, 2011. A due date to submit the IAPs has not been announced.

By Stefanie Rubin, Research Associate

Additional Resources:

Source Article: The Microcredit Summit Campaign: Submit Your Institutional Action Plan: http://www.microcreditsummit.org/submit_institutional_action_plan/

MICROCAPITAL PAPER WRAP-UP: The State of the Microcredit Summit Campaign Report 2009, by Sam Daley-Harris: http://www.microcapital.org/?s=MICROCAPITAL+PAPER+WRAP-UP%3A+The+State+of+the+Microcredit+Summit+Campaign+Report+2009%2C+by+Sam+Daley-Harris&x=0&y=0

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MICROCAPITAL BRIEF: Mr Vijay Mahajan, President of Microfinance Institutions Network (MFIN) and Chairman of CGAP (Consultative Group to Assist the Poor), Argues Banks Should Charge Microfinance Institutions Less than 10%

Stefanie Rubin — Thu, 15 Jul 2010 05:03:00 +0000

In a recent interview featured on LiveMint, an Indian business newspaper owned by the Wall Street Journal, Mr Vijay Mahajan, President of the Microfinance Institutions Network (MFIN), a network of 39 microfinance institutions (MFIs) in India, argued that “banks should charge less than 10 percent while lending to MFIs.”

According to Mr Mahajan, banks currently charge 11.5 to 14.5 percent, making it difficult for MFIs to lower the interest rates they charge to borrowers, which he reckons now averages 26 percent.

Mr Mahajan added that he expects the interest rates charged by MFIs to decrease as the cost of borrowing from banks decreases, the volume of customers increases and as more efficient use of technology helps bring down operational costs.

By Stefanie Rubin, Research Associate

About the Microfinance Institutions Network (MFIN):

The Microfinance Institutions Network (MFIN) is a self-regulatory organization comprised of 39 of India’s microfinance institutions (MFIs). Mr Vijay Mahajan, Chairman of MFIN, is also the Chairman of CGAP (Consultative Group to Assist the Poor) and the Chairman of the BASIX Group, an Indian microfinance institution established in 1996. BASIX Group consists of several companies that provide savings and insurance services to poor households in rural India as well as agricultural/business development services and institutional development services.

Additional Resources:

Source Article: Livemint.com: “Banks Should Charge Less than 10% While Lending to Microfinance Institutions” http://www.livemint.com/2010/07/07222548/Banks-should-charge-less-than.html?atype=tp

MicroCapital Universe: Microfinance Institutions Network (MFIN): http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Institutions+Network+(MFIN)

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MICROCAPITAL BRIEF: President of Microfinance Institutions Network (MFIN), Mr Vijay Mahajan, Confronts “Misconceptions” About Microfinance Industry

Stefanie Rubin — Thu, 08 Jul 2010 05:03:20 +0000

Mr Vijay Mahajan, President of the Microfinance Institutions Network (MFIN), a self-regulated network organization of 39 microfinance institutions (MFIs) in India, authored an article recently published in India’s daily Economic Times addressing what he termed misconceptions about the microfinance industry.

“Stories about high interest rates, over-lending, defaults and coercive recoveries make sensational headlines. But independent studies by NCAER [the National Council for Applied Economic Research in India], CRISIL [a credit rating agency based in Bangalore, India] and others show that most MFIs [microfinance institutions] are credible and committed to providing affordable financial services to India’s 150 million financially-excluded households,” said Mr Mahajan.

By Stefanie Rubin, Research Associate

About the Microfinance Institutions Network (MFIN):

The Microfinance Institutions Network (MFIN) is a self-regulatory organization comprised of 39 of India’s microfinance institutions (MFIs). Mr Vijay Mahajan, Chairman of MFIN, is also the Chairman of the BASIX Group, an Indian microfinance institution established in 1996. BASIX Group consists of several companies that provide savings and insurance services to poor households in rural India as well as agricultural/business development services and institutional development services.

Additional Resources:

Source Article: The Economic Times: MFIs as Engine of Inclusive Growth: http://economictimes.indiatimes.com/Opinion/Comments–Analysis/MFIs-as-engine-of-inclusive-growth/articleshow/6100153.cms?curpg=1

MicroCapital Universe: Microfinance Institutions Network (MFIN): http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Institutions+Network+(MFIN)

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MICROCAPITAL BRIEF: Germany’s Environment Ministry, KfW to Launch $500m Microfinance Fund for Climate Projects in Brazil, Asia, Africa

Stefanie Rubin — Thu, 08 Jul 2010 05:03:05 +0000

Germany’s Federal Environment Ministry recently announced it would be launching a USD 500 million climate fund that will provide microloans for individual energy efficiency or renewables projects initially through local banks in Brazil, China, India, Indonesia, Morocco, the Philippines and South Africa.

The loans will be primarily directed to small businesses, and all borrowers must demonstrate that energy efficiency will be increased by at least 20 percent.

The ministry will contribute USD 28 million, and KfW Entwicklungsbank, a German development bank, will contribute USD 75 million. Investments totaling the equivalent of USD 186 million are also anticipated from the European Investment Bank and the International Finance Corporation. The remaining funds are to be raised from public and private investors by 2015. According to Mr Norbert Roettgen, Germany’s Environment Minister, “the aim is to bring in funds from private investors, which will be hedged against losses with help of the public funds.”

By Stefanie Rubin, Research Associate

About KfW Entwicklungsbank (KfW):

KfW Entwicklungsbank (KfW) is a state-owned development bank in Germany. KfW has three goals: to reduce poverty, to make globalization fair and to conserve natural resources. KfW collaborates with a variety of local financial institutions in approximately 60 countries, including microbanks, commercial banks, village savings banks, non-governmental organizations and regional microfinance funds. KfW Entwicklungsbank has a portfolio of EUR 2.15 billion (USD 2.57 billion), around three fourths of which is made up of its own funds.

Additional Resources:

Source Article: The Associated Press: Germany setting up $500 million climate fund: http://www.businessweek.com/ap/financialnews/D9GKURJ00.htm

MicroCapital Universe: KfW Entwicklungsbank (KfW): http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+%28KfW%29

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MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund and responsAbility Mikrofinanz-Fonds Invest $200,000 in FASO Investments and Catalyst Microfinance Investors (CMI), Which Invest in Asia and Africa

Stefanie Rubin — Tue, 06 Jul 2010 16:18:32 +0000

responsAbility, a Swiss-based microfinance investment vehicle (MIV) manager, recently reported to MicroCapital that it has invested USD 201,000 in equity financing from two of the funds it manages in two microfinance-focused investment firms.

FASO Investments, an equity investment vehicle incorporated in the Netherlands focusing on microfinance in Africa, received USD 19,000 from the responsAbility Global Microfinance Fund and USD 46,000 from responsAbility Mikrofinanz-Fonds. Catalyst Microfinance Investors (CMI), a private company managed by the microfinance institution, ASA of Bangladesh, received USD 136,000 from responsAbility Mikrofinanz-Fonds.

By Stefanie Rubin, Research Associate

About responsAbility Global Microfinance Fund:

The responsAbility Global Microfinance Fund (rAGMF) invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), mostly through short- to medium-term debt securities. rAGMF also invests up to 10 percent of its assets in the equity of MFIs. As of April 2010, it has been certified by the Luxembourg Funding Labeling Agency (LuxFLAG), an independent nonprofit that certifies MIVs based on their direct or indirect investment in the microfinance sector.

About responsAbility Mikrofinanz-Fonds:

The responsAbility Mikrofinanz-Fonds invests in microfinance institutions (MFIs) through debt securities and equity investments. The fund was created in 2007 by responsAbility of Luxembourg, and is financed by Bank im Bistum Essen, a German cooperative financial institution, and Stadtsparkasse D’sseldorf, a German bank. As of April 2010, it has been certified by the Luxembourg Funding Labeling Agency (LuxFLAG), an independent nonprofit, which certifies MIVs based on their direct or indirect investment in the microfinance sector.

Additional Resources:

Source Article: E-mail correspondence with MicroCapital June 10, 2010.

MicroCapital Universe: responsAbility Global Microfinance:http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+(rAGMF)

MicroCapital Universe: responsAbility Mikrofinanz-Fond:http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds

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MICROCAPITAL BRIEF: Grameen Foundation Releases Paper, “Measuring the Impact of Microfinance: Taking Another Look” by Professor Kathleen Odell

Stefanie Rubin — Tue, 06 Jul 2010 16:14:16 +0000

The Grameen Foundation, a US-based nonprofit organization, has released a paper, titled, “Measuring the Impact of Microfinance: Taking Another Look,” to address and inform the current debate surrounding microfinance’s efficacy in reducing poverty and ameliorating other social problems.

The paper is a survey of several microfinance impact assessment evaluations released between 2005 and 2010.

“One aim of this paper is to summarize the results of these new studies, disentangling the media interpretation from the actual findings reported,” said Professor Kathleen Odell, author of the paper. She added that while evidence suggests that microfinance is good for microbusinesses, “the overall effect on the incomes and poverty rates of microfinance clients is less clear, as are the effects of microfinance on measures of social well-being, such as education, health, and women’s empowerment.”

By Stefanie Rubin, Research Associate

About the Grameen Foundation

The Grameen Foundation, based in Washington, D.C., aims to help microfinance institutions (MFIs) throughout the world replicate the microfinance model of the Grameen Bank http://www.grameen-info.org/ (external link). It provides financial, technological and managerial support for local organizations and intends to provide new business opportunities and telecommunication services to the rural poor. The Grameen Foundation works with MFIs in about 37 countries worldwide. Though the Grameen Foundation is independent of the Grameen Bank, Muhammad Yunus, the founder of the Grameen Bank, serves on the foundation’s Board of Directors.

Additional Resources:

Source Article: Creating a World Without Poverty: A Grameen Foundation Blog

Measuring the Impact of Microfinance: Taking Another Look

MicroCapital Universe: The Grameen Foundation

MICROCAPITAL BRIEF: Freedom from Hunger Research Team in Davis, California, Attempts to Reconcile Opposing Arguments Regarding the Effect of Microfinance

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