Category: Regulation

MICROCAPITAL BRIEF: Jamaica Microfinancing Association (JamFA) Executive Director Raymond Gabbidon Says “Loan Shark” Accusation is “Unfair”

According to statements attributed to Mr Raymond Gabbidon, Executive Director of the eleven-member Jamaica Microfinancing Association (JamFA), the recent characterization [1] of the country’s microfinance sector as being afflicted by “loan sharks” by former Commerce Secretary Dr Chris Tufton is “unfair.” Continue reading

Share

MICROCAPITAL BRIEF: Facebook Seeks Regulatory Approval from Central Bank of Ireland to Provide Remittances, Mobile Money Throughout European Union

Facebook, a US-based social networking company, reportedly is waiting for approval of its application to the Central Bank of Ireland to become an “e-money” institution, which would allow it to provide remittances and mobile money services throughout Europe through a structure known as “passporting”[2]. Continue reading

Share

MICROCAPITAL BRIEF: International Finance Corporation (IFC), Mongolia Seek to Improve Secured-Transaction Payment System

The International Finance Corporation (IFC), the private-investment arm of the US-based World Bank Group, has recently partnered with Mongolia’s Ministry of Justice to augment Mongolia’s regulatory system for secured-transaction payments, transactions between lenders and borrowers that are predicated on borrowers’ collateral. Continue reading

Share

MICROCAPITAL BRIEF: Insurance Commission of the Philippines Promotes Alternative Dispute Resolution in Microinsurance

The Insurance Commission of the Philippines (ICP), a government agency that regulates and supervises the country’s insurance industry, has been holding seminars in various parts of the country to present its latest strategies in consumer protection for microinsurance clients. Continue reading

Share

MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Grants Preliminary Approval to Microlender Bandhan to Receive Banking License

The Reserve Bank of India (RBI), the country’s central bank, recently granted “in-principle” approval to the Infrastructure Development Finance Company (IDFC), an Indian financial services provider based in the city of Mumbai, and Bandhan Financial Services Private Limited, a microfinance institution (MFI) based in the Indian city of Kolkata, to acquire banking licenses. Continue reading

Share

MICROFINANCE PUBLICATION ROUND-UP: Government Efforts to Achieve Financial Inclusion in India; Index-based Insurance in South, Southeast Asia; Microinsurance Claims Management

“Report of the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households;” published by the Reserve Bank of India (RBI); December 31, 2013; 247 pages; available at http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/CFS070114RFL.pdf

This report was authored by the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, which was appointed by the Reserve Bank of India (RBI) in September 2013 to propose measures for increasing access to financial services in India. Continue reading

Share

MICROCAPITAL BRIEF: Peru-based Financiera Edyficar’s Acquisition of 61% Stake in Mibanco Receives Regulatory Approval

Peru-based microlender Financiera Edyficar (Edyficar), an operating subsidiary of Peruvian holding company Creditcorp, has received regulatory approval from the Peruvian Superintendency of Banks, Insurance and Pension Funds, the financial sector regulator in the country, for its proposed USD 179 million acquisition of a 60.7-percent stake in Mibanco, a Peruvian microfinance institution (MFI) that is a subsidiary of nonprofit holding company Grupo Accion Comunitaria del Peru (ACP). Continue reading

Share

MICROCAPITAL BRIEF: By December, Reserve Bank of India (RBI) May Issue First New Banking Licenses Since 2004

The Indian Express, a provider of business news in India, recently speculated that the Reserve Bank of India (RBI), the country’s central banking authority, will issue at least three new banking licenses either in the second quarter of 2014 or near the end of the year. Continue reading

Share

MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Allocates 60% of $1.3b Micro-, Small, Medium-Sized Enterprises Development Fund to Promote Women’s Empowerment, Gender Equality

In a publication outlining guidelines for the operation of its Micro-, Small, and Medium-Sized Enterprises Development Fund (MSMEDF), the Central Bank of Nigeria (CBN), the country’s central banking authority, included a mandate to allocate 60 percent of the fund, or NGN 132 billion (USD 802 million), for on-lending to women-owned enterprises in an effort to promote the empowerment of women and to reduce gender inequality. Continue reading

Share

MICROCAPITAL BRIEF: Government of Jamaica Introduces SIPP Registry of Collateral, “Super Form” for Business Registration to Support Micro-, Small, Medium-Sized Enterprises (MSMEs)

The government of Jamaica has initiated the implementation of the Security Interests in Personal Property (SIPP) Registry to facilitate financial access for micro-, small and medium-sized enterprises (MSMEs) by supporting the use of non-real estate assets, including movable items, as collateral [1][2]. Continue reading

Share

MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Considers Relaxing Capital Requirements for New Bank Licenses

The Reserve Bank of India (RBI), the country’s central banking authority, recently commissioned an investigative panel, the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households (the Committee), to create a policy framework for achieving financial inclusion in India and to make formal recommendations on how to implement the framework. Continue reading

Share

MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Unfixes Microloan Interest Rate Cap to Vary Based on Cost of Funding

The Reserve Bank of India (RBI), the country’s central banking authority, has announced that as of April 1, 2014, it will remove the 26-percent interest rate cap established in 2011 on all microloans extended by microfinance institutions (MFIs) in the country. Continue reading

Share