Category: Regulation

MICROCAPITAL BRIEF: India’s Sa-Dhan, Microfinance Institutions Network (MFIN) Revise Code of Conduct

Sa-Dhan, an India-based association of 214 microlenders and other financial institutions, and the Microfinance Institutions Network (MFIN), a trade association of 48 Indian microfinance lenders, recently launched a revised code of conduct. Continue reading

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MICROCAPITAL BRIEF: Nepal Rastra Bank Requires Microfinance Institutions (MFIs) to Create Client Protection Fund

Nepal Rastra Bank (NRB), the country’s central bank, recently announced that it is requiring microfinance institutions (MFIs) in the country to establish a “Client Protection Fund”[1] to which they must deposit 1 percent of their annual net profit. Continue reading

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MICROCAPITAL BRIEF: United Nations Development Program (UNDP); United Nations Capital Development Fund (UNCDF) Support Bank of Sierra Leone in Launching Mobile Financial Services Guidelines

The Bank of Sierra Leone, the central bank of the country, has partnered with United Nations Development Program (UNDP), a member of the UN that invests knowledge and other resources into developing countries, and United Nations Capital Development Fund (UNCDF), a UN agency that works to increase access to microfinance and other forms of capital in developing countries, to launch the first mobile financial services guidelines in Sierra Leone [1]. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: United Nations Development Program (UNDP); United Nations Capital Development Fund (UNCDF) Support Bank of Sierra Leone in Launching Mobile Financial Services Guidelines Posted in Africa, Mobile Money, Regulation, Transparency

MICROFINANCE PUBLICATION ROUND-UP: Islamic Banking and Growth; Sharia-Compliant Microfinance Products; Islamic Financial Services in Yemen

“Is Islamic Banking Good for Growth?”; by Patrick Imam and Kangni Kpodar; published by the International Monetary Fund; April 2015; 33 pages; available at: http://www.microfinancegateway.org/library/islamic-banking-good-growth

This paper analyzes the relationship between the development of Islamic banking and economic growth in low- and middle-income countries, finding that “countries where Islamic banking is present experience faster economic growth than others” [1]. Continue reading

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MICROCAPITAL BRIEF: Microcredit Regulatory Authority (MRA) of Bangladesh Regulates Fixed Assets of Microfinance Institutions (MFIs)

The Microcredit Regulatory Authority (MRA), a Bangladeshi government authority that oversees the operations of nongovernmental organization (NGO) microfinance institutions (MFIs), reportedly has regulated investments in fixed assets by microfinance institutions (MFIs) in the country. Continue reading

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MICROFINANCE EVENT: Microfinance Egypt Summit, March 23-24, 2016, Cairo, Egypt

Event Name: Microfinance Egypt Summit

Event Dates: March 23-24, 2016

Event Location: The Nile Ritz-Carlton Cairo, Egypt Continue reading

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MICROCAPITAL BRIEF: Reserve Bank India (RBI) Eases Microfinance Interest Rate Norm to Allow Cheaper Loans to Members of Scheduled Castes (SC) Earning Less than $2.50 Per Day

The Reserve Bank India (RBI), the nation’s central banking authority, has eased the maximum allowance of a variance of 4 percent between minimum and maximum interest rates on loans by microfinance institutions (MFIs) in order to encourage the provision of cheaper loans to those members of Scheduled Castes (SC), historically disadvantaged people in India, who earn less than double the international poverty line defined by the United Nations (UN) as USD 1.25 per day. Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Legislation for Client Protection; Consumer Satisfaction in India; Women’s Financial Inclusion Data

“Client Protection Principles: Model Law and Commentary for Financial Consumer Protection;” published by the Microfinance CEO Working Group; April 2015; 66 pages; available at: http://microfinanceceoworkinggroup.org/wp-content/uploads/2015/04/CPP-Model-Laws-April-2015.pdf

This publication offers guidelines for creating legislation to protect low-income consumers of financial services. Continue reading

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MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Awards Small Finance Bank Licences to 10 Microfinance Institutions (MFIs)

The Reserve Bank of India (RBI), the central banking authority of the country, recently has given “in-principle approval”[1] of the requests for Small Finance Bank Licences of the following microfinance institutions (MFIs): Jaipur-based Au Financiers, Jalandhar-based Capital Local Area Bank, Ahmedabad-based Disha Microfin, Chennai-based Equitas, Chennai-based ESAF Microfinance and Investments, Bengaluru-based Janalakshmi Financial Services, Guwahati-based RGVN (North East) Microfinance, Chennai-based Suryoday, Bangalore-based Ujjivan and Varanasi-based Utkarsh. Continue reading

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MICROCAPITAL BRIEF: European Commission (EC) Launches EaSI-MicPro, a New Online Information on Microcredit Providers

The European Commission (EC), the executive body of the European Union (EU), recently launched EaSI-MicPro, a new online platform where microcredit providers can present information about their operations. Continue reading

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MICROFINANCE PAPER WRAP-UP: Symbiotics 2015 Microfinance Investment Vehicles (MIV) Survey Report: Market Data and Peer Group Analysis

“Symbiotics 2015 Microfinance Investment Vehicles (MIV) Survey Report: Market Data and Peer Group Analysis;” published by the Symbiotics Group; 2015; 45 pages; available at http://www.syminvest.com/papers/ed4710d3-cd20-4366-ad75-095f2b3adffe

Symbiotics, a Switzerland-based investment company that is “specialized in emerging, sustainable and inclusive finance,” recently published its ninth annual microfinance investment vehicles (MIVs) survey based on indicators reported by MIVs for 2014. Continue reading

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MICROCAPITAL BRIEF: Perhimpunan Baitul Maal wat Tamwil Indonesia Implements Islamic Financial Empowerment Program Including Grants, Subsidized Loans, Market-Rate Credit

Perhimpunan Baitul Maal wat Tamwil (BMT) Indonesia, a financial cooperative coordinating 150 of Indonesia’s microfinance institutions that employ the BMT model of Islamic finance, has implemented a three-stage financial empowerment program that aims to benefit low-income individuals in the country. Continue reading

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MICROCAPITAL BRIEF: IFC to Advise Government of Myanmar on Regulation; Small, Medium-sized Enterprises (SMEs); Financial Inclusion; Microfinance

The International Finance Corporation (IFC), a member of the US-based World Bank Group that aims to increase economic growth in developing countries, recently signed a memorandum of understanding (MOU) with the Ministry of Commerce of Myanmar. Continue reading

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MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Grants National Microfinance Banking License to Fortis Microfinance Bank (Fortis MFB)

The Central Bank of Nigeria (CBN) recently granted a microfinance banking license to Fortis Microfinance Bank (Fortis MFB), a privately owned microfinance institution in Nigeria [1]. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Grants National Microfinance Banking License to Fortis Microfinance Bank (Fortis MFB) Posted in Africa, Regulation

MICROCAPITAL BRIEF: Asian Development Bank (ADB) to Finance a Loan Program of $400m to Promote Financial Inclusion in Indonesia

The Asian Development Bank (ADB), a Philippines-based multilateral development finance institution, has committed to loaning USD 400 million toward its Financial Market Development and Inclusion Program (FMDIP) for Indonesia. Continue reading

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MICROCAPITAL BRIEF: Microfinance Institutions Network (MFIN) of India Advises Members to Reduce Interest Rates

The Microfinance Institutions Network (MFIN), a trade organization composed of 47 Indian microlenders, has advised its members to reduce their interest rates voluntarily by “at least 25 basis points” [1] by the end of September 2015. Continue reading

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MICROCAPITAL BRIEF: Peru Enacts National Financial Inclusion Strategy

The government of Peru recently enacted a National Financial Inclusion Strategy (NFIS) after consultation with the World Bank Group (WBG), a multilateral development organization that aims to improve living standards in developing countries. Continue reading

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MICROCAPITAL BRIEF: Philippines’ Securities and Exchange Commission (SEC) to Establish Microfinance NGO Regulatory Council

The Philippine Senate has recently passed Senate Bill 2752, also called the Microfinance NGOs Act, which directs the Securities and Exchange Commission (SEC), an agency of the Philippine government regulating the securities market in an effort to promote economic efficiency, to establish the Microfinance Non-Governmental Organization (NGO) Regulatory Council. [1] Continue reading

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