Category: Regulation

MICROCAPITAL BRIEF: National Housing Bank (NHB) of India Approves Muthoot Finance to Offer Home Mortgages

The National Housing Bank (NHB), the Indian governmental agency that oversees housing finance, reportedly has granted Muthoot Finance, an Indian non-banking finance company (NBFC) that lends using gold items as collateral, approval to begin providing housing finance services. Continue reading

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MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Assist Central Bank of Morocco with Credit Information Sharing Regulations

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently announced that it will assist the Central Bank of Morocco (CBM), also known as Bank Al-Maghrib, with the development of laws and regulations regarding credit information sharing among lenders. Continue reading

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MICROFINANCE PUBLICATION WRAP-UP: “The Microfinance Sector in Morocco: Investment Opportunities After the Crisis;” Published by MicroFinanza Rating

“The Microfinance Sector in Morocco: Investment Opportunities After the Crisis,” published as part of the Insight series by MicroFinanza Rating, May 2014, 4 pages, available at http://www.microfinanzarating.com/images/Insight_Morocco_March_2014.pdf

Performed by Italy’s MicroFinanza Rating in May 2014, this “country screening” analyzes the political, economic and legal frameworks in which microfinance institutions (MFIs) function in Morocco. Continue reading

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MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Allows Non-banking Finance Companies (NBFCs) to Work as Agents for Banks

The Reserve Bank of India (RBI), a government agency charged with overseeing the Indian financial sector, has revised its regulations to permit non-banking finance companies (NBFCs) that do not accept deposits to act as business correspondents for Indian banks, providing limited financial services to clients in unbanked areas. Continue reading

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MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Revises Reporting Requirements, Other Guidelines for Banks’ Microfinance Operations

Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has expanded the amount of reporting that banks must perform regarding their microfinance operations with the aim of helping BSP create “evidence-based policies that are responsive to the needs of the market” [1]. Continue reading

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MICROCAPITAL BRIEF: Reserve Bank of India Simplifies “Know Your Customer” Requirement for Establishing Bank Accounts

The Reserve Bank of India (RBI), India’s central banking authority, has announced that it has simplified the “Know Your Customer” (KYC) process that it requires commercial banks in India to undertake before opening bank accounts for individuals. Continue reading

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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

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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

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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

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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

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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

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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

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