Category: Regulation

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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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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MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Forms Committee to Promote Financial Inclusion

The Reserve Bank of India (RBI), the central banking authority of the country, recently established a 14-member committee with the objective of implementing a five-year action plan for financial inclusion. Continue reading

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MICROCAPITAL BRIEF: Indonesia to Disburse $2.2b under Microfinance Program Kredit Usaha Rakyat (KUR) to Encourage Growth of Micro-, Small and Medium-Sized Enterprises (MSMEs)

The Indonesian government intends to disburse IDR 30 trillion (USD 2.2 billion) in small business loans under its Kredit Usaha Rakyat (KUR) program, which is intended to provide credit to micro-, small and medium-sized enterprises (MSMEs) and cooperatives. Continue reading

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MICROCAPITAL BRIEF: Bank of Ghana Doubles Minimum Capital Requirement for Microfinance Institutions (MFIs) to $610k As of 2018

The Bank of Ghana (BoG), which serves as the country’s central bank and is mandated to license, regulate and supervise financial institutions, reportedly announced that it has revised the minimum capital requirement for microfinance institutions (MFIs) from GHS 1 million (approximately USD 305,000) to GHS 2 million (approximately USD 610,000). Continue reading

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MICROCAPITAL BRIEF: Pakistan’s Apna Obtains Nationwide Microfinance Banking License

The State Bank of Pakistan (SBP), the country’s central bank, recently issued a nationwide microfinance banking license to Apna Microfinance Bank (Apna MFB) thereby enhancing its status from that of a district-based bank. This license permits Apna MFB to expand its operations outside the city of Karachi, Pakistan, where it operates five branches. Continue reading

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MICROCAPITAL BRIEF: Insurance Regulatory Authority of Uganda (IRA) to Reduce Minimum Capital Requirement for Microinsurers to $30k, Increase Client Protection Measures

The Insurance Regulatory Authority of Uganda (IRA) recently urged insurance companies in the country to work with microfinance institutions (MFIs) to develop and promote microinsurance products. Continue reading

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MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considers $22m Credit to Belinvestbank of Belarus for On-Lending to Micro-, Small and Medium-sized Enterprises (MSMEs)

The European Bank for Reconstruction and Development (EBRD), a multilateral investment institution headquartered in London, is considering extending a credit line of EUR 20 million (USD 22 million) to Belinvestbank (BIB), a state-owned bank in Belarus. Continue reading

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MICROCAPITAL BRIEF: Bank of Ghana Rejects Appeal by Customers of DKM Diamond Micro-Finance Limited; President Intervenes

The Bank of Ghana (BoG), the country’s central bank, recently rejected an appeal by the customers of the Ghana-based savings and microfinance company DKM Diamond Micro-Finance Limited (DKM) who had requested their cash deposits and matured investments with DKM to be paid out. BoG rejected the appeal due to the investigation into DKM’s practices being pending. BoG argued that it had to establish whether the MFI had violated the Ghanaian banking act before it allowed access to funds held by DKM. Continue reading

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MICROCAPITAL BRIEF: World Economic Forum (WEF) Leaders Aim for Cooperation among Regulators for Financial Inclusion in Africa

During the World Economic Forum (WEF) in South Africa, business and political leaders from multiple African countries including Kenya, Nigeria, and South Africa among others, emphasized the need for collaboration among regulators in order to promote financial inclusion globally. Continue reading

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MICROCAPITAL BRIEF: India’s Bandhan Financial Services Receives Banking License Permitting it to Accept Deposits; Plans to Begin Banking Operations in August 2015

The Indian microfinance institution, Bandhan Financial Services, which received a provisional banking license from the Reserve Bank of India (RBI) in 2014, recently announced that it has received final approval from RBI that allows it to accept deposits. The organization intends to start offering banking services beginning August 23, 2015. Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Morocco’s Microfinance Market; Trends in Funding Financial Inclusion; Growth Projections in Islamic Microfinance

“Ending the Microfinance Crisis in Morocco: Acting early, acting right;” published by the International Financial Corporation in partnership with the Canadian Department of Foreign Affairs, Trade, and Development; the Danish International Development Agency; Japan; Switzerland’s State Secretariat for Economic Affairs; and UKaid; October 2014; available at http://www.ifc.org/wps/wcm/connect/5e1e5a0047850bdba0d4f5299ede9589/IFC+Morocco+MicroFinance+Crisis+report.English.pdf?MOD=AJPERES
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Da Afghanistan Bank (DAB), International Development Association (IDA), International Finance Corporation (IFC), Harakat Implement Credit, Collateral Registry in Afghanistan

Da Afghanistan Bank (DAB), the central bank of Afghanistan, recently implemented a credit infrastructure modernization project involving the establishment of Collateral Registry (CR) and Public Credit Registry (PCR) systems, which enable automation of loan processing by tracking information about clients, outstanding loans and assets pledged to back those loans. Continue reading

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