Category: Regulation

MICROCAPITAL BRIEF: National Social Security Authority (NSSA) of Zimbabwe Losing License for Capital Bank, Seeks to Establish Microfinance Institution (MFI)

The Reserve Bank of Zimbabwe (RBZ), the authority that supervises the financial sector and formulates monetary policy in Zimbabwe, reportedly has canceled the operating license of Capital Bank Corporation Limited (Capital Bank), a financial institution in Zimbabwe that offers corporate banking, wealth management, trade finance and financial advisory services, due to insufficient liquidity. Continue reading

Share

MICROCAPITAL BRIEF: Egypt Approves Microfinance Law in Effort to Expand Access to Microcredit, Bring Microenterprises into Formal Economy

The government of Egypt reportedly has approved a new law that will expand informal businesses’ access to loans of up to EGP 100,000 (USD 13,985) by enabling non-bank microfinance institutions (MFIs) to enter the formal microfinance sector, which had been restricted to banks and NGOs. Continue reading

Share

MICROCAPITAL BRIEF: Bank Indonesia Revises Electronic Money Policy, Allows Banks with $2b in Core Capital to Offer “Digital Financial Services” Via Agents

Bank Indonesia (BI), the central bank of Indonesia, reportedly has amended its electronic money regulations to allow all banks with at least IDR 30 trillion (USD 2.6 billion) in core capital to offer “digital financial services” to customers including the option for third-party agents to provide access to services in rural areas on behalf of the banks. Continue reading

Share

MICROFINANCE PUBLICATION ROUND-UP: Over-indebtedness in Mexico; Achieving Customer Centricity; Managing Over-indebtedness

“Over-Indebtedness in Mexico: Its Effect on Borrowers;” published by Microfinance CEO Working Group; May 2014; 32 pages; available at http://microfinanceceoworkinggroup.org/wp-content/uploads/2014/05/Over-Indebtedness-in-Mexico-Its-Effect-on-Borrowers-552014.pdf

This report cautions lending institutions in Mexico about rising levels of over-indebtedness – meaning more borrowers cannot reasonably repay their debts – which can threaten the financial system as well as the economic outlook of low-income individuals. Continue reading

Share

MICROCAPITAL BRIEF: Zimbabwe Association of Microfinance Institutions (ZAMFI) Warns Against Illegal Deposit-taking by Microfinance Institutions (MFIs)

The executive director of the Zimbabwe Association of Microfinance Institutions (ZAMFI), Mr Godfrey Chitambo, reportedly cautioned the Zimbabwean public recently against microfinance institutions (MFIs) that are taking deposits illegally. Continue reading

Share

MICROCAPITAL BRIEF: IsePankur’s Online Loan Site Bondora Receives Peer-to-Peer Lending License From UK’s Financial Conduct Authority

Bondora, a website owned by Estonia’s isePankur that allows individuals and enterprises to borrow from and lend to each other, recently announced that it obtained a peer-to-peer lending license from the Financial Conduct Authority (FCA), a regulatory agency in the UK. Continue reading

Share

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