The Ministry of Economy of Gabon recently froze the activities of 50 microfinance institutions that lacked approval to offer microfinance services.
Category: Regulation
MICROFINANCE PUBLICATION ROUND-UP: Flexible Microloan Repayment Schedules in Bangladesh; Merchant Acceptance of Digital Payments in Developing Countries; Global Standard-setting Bodies and Financial Inclusion
“Cost-Benefit Analysis of Traditional Versus Flexible Microfinance in Bangladesh;” by S. Bairagi, W. Bin Shadat; published by the Copenhagen Consensus Center; May 2016; 32 pages; available at: http://www.copenhagenconsensus.com/sites/default/files/bin_shadat_microfinance.pdf
MICROFINANCE PAPER WRAP-UP: Guidance on the Application of the Core Principles for Effective Banking Supervision to Institutions Relevant to Financial Inclusion, published by the Basel Committee
“Guidance on the Application of the Core Principles for Effective Banking Supervision to the Regulation and Supervision of Institutions Relevant to Financial Inclusion”, published by the Basel Committee on Banking Supervision, December 2015, 55 pages, available at http://www.bis.org/bcbs/publ/d351.pdf
MICROCAPITAL BRIEF: Luxembourg Fund Labeling Agency (LuxFLAG) Provides Microfinance Label to GLS Alternative Investments-Mikrofinanzfonds (GLSMIKA), Renews Labels for 14 Investment Funds
The Luxembourg Fund Labeling Agency (LuxFLAG), a Luxembourg-based nonprofit organization that certifies the operations of investment vehicles that support microfinance and environmental initiatives, recently announced it granted its Microfinance Label for the first time. The fund is promoted by German bank Gemeinschaftsbank für Leihen und Schenken (GLS).
MICROFINANCE PUBLICATION ROUND-UP: Trends in International Funding for Financial Inclusion; Inclusive Finance in India; Financial Regulation for Inclusion and Development in Latin America
“Current Trends in International Funding for Financial Inclusion;” by M. Soursourian, E. Dashi and E. Dokle; published by CGAP (Consultative Group to Assist the Poor); December 2015; 4 pages; available at: http://www.cgap.org/sites/default/files/Brief-Current-Trends-in-International-Funding-Dec-2015.pdf
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.
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.
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].
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].
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.
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
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.
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.
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.
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.
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.
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.
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.