MICROCAPITAL BRIEF: State Bank of Pakistan Releases Five-Year “Microfinance Strategic Framework,” Launches Financial Literacy Programme

The State Bank of Pakistan (SBP), Pakistan’s central bank, recently announced that it has developed a detailed strategy to promote the sustainable growth of microfinance as outlined in its “Microfinance Strategic Framework 2011-2015” that is intended to “foster a pro-poor and sustainable development of the country” [1].

MICROFINANCE PUBLICATION ROUND-UP: Directory of Microfinance Investors in Africa; Impact Investors in Asia; Book on Microfinance Due Diligence

AMT Directory of Microfinance Investors,” published by the African Microfinance Transparency Forum (AMT), November 2011, available for a fee through info@amt-forum.org, preview available at: http://www.amt-forum.org/fileadmin/media_amt/publications/AMT_Directory_…

Luxembourg-based nonprofit African Microfinance Transparency Forum (AMT) recently published the third edition of its directory of microfinance investors, which is updated every two years to facilitate relationships between African microfinance institutions (MFIs) and investors active in Africa.

MICROCAPITAL BRIEF: Vietnam Sets 10-Year Microfinance Strategy, French Development Agency Donates $1.3m

The Prime Minister of Vietnam recently approved a National Microfinance Strategy, which aims to develop a safe and sustainable microfinance system to ensure social welfare and sustainable poverty eradication in the country

MICROCAPITAL BRIEF: Stymied by Local Regulation, Microfinance Institutions (MFIs) based in India’s Andhra Pradesh Expand Into Northern States

Following the enactment of the Regulation of Microlending Act in October 2010 by government of the Indian state of Andhra Pradesh (AP), which requires government approval of each microloan, microfinance institutions (MFIs) based in AP have began expanding into northern India.

MICROCAPITAL BRIEF: Nepal to Introduce Microinsurance Fund, Deems Work of NGOs Offering Microinsurance “Illegal” Unless Working with Licensed Insurance Companies

The Nepalese government is instituting a microinsurance fund that will “reinsure” products sold by insurers to “divert risk created by settlement of insurance claims” [1].

MICROCAPITAL BRIEF: Securities and Exchange Commission of Pakistan (SECP) to Launch Microinsurance Regulatory Framework by June 2012

The Securities and Exchange Commission of Pakistan (SECP), an autonomous body whose purpose is to develop the corporate sector in the country, will reportedly launch a microinsurance regulatory framework by June 2012.

MICROCAPITAL BRIEF: Government of Andhra Pradesh, India, Introduces Interest-Free Loans for Women in Self-Help Groups (SHGs)

On January 1, the government of the Indian state of Andhra Pradesh will introduce Vaddi Leni Runnam, a scheme that will provide women in self-help groups (SHGs) interest-free loans of up to INR 500,000 (USD 9,500) [1,2].

MICROCAPITAL BRIEF: Reserve Bank of India Recommends Against State Government Regulation of Microfinance

The Reserve Bank of India (RBI), India’s central banking authority, recently released a report titled, “Trend and Progress of Banking in India 2010-11,” expressing concern over state governments enacting local legislation to regulate microfinance institutions (MFIs).

MICROCAPITAL BRIEF: Alliance for Financial Inclusion’s Global Policy Forum Concludes with Signing of Maya Declaration on Financial Inclusion

The Alliance for Financial Inclusion (AFI), a Thailand-based network of policymakers that works towards increasing access to financial services for poor people, concluded its Global Policy Forum in Mexico recently with representatives of central banks and financial regulators from developing countries signing the Maya Declaration on Financial Inclusion [1].

MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Introduces New Category of Non-Banking Financial Company (NBFC): NBFC–Microfinance Institution

A recent document published by the Reserve Bank of India (RBI), India’s central banking authority, introduces a standalone category for “non-banking financial company—microfinance institutions” (NBFC-MFIs) as was proposed by the Malegam Committee, an RBI-appointed panel headed by RBI board member YH Malegam.

MICROCAPITAL BRIEF: Indian Finance Ministry Proposes Microfinance Bill Allowing Deposit-Taking, Reserve Bank of India Opposed

The finance ministry in India is drafting a Microfinance Institutions (Development and Regulation) Bill which will allow microfinance institutions (MFIs) in India to collect deposits from self-help groups (SHGs) and SHG members.

MICROFINANCE PAPER WRAP-UP: Microfinance and the Role of Policies and Procedures in Saturated Markets and During Periods of Fast Growth, by Adrian Gonzalez and Emmanuelle Javoy, published by, Microfinance Information Exchange, Planet Rating

Published by the Microfinance Information Exchange & Planet Rating, MicroBanking Bulletin, September 2011, 10 pages, available at: http://www.themix.org/sites/default/files/MBB-%20microfinance%20and%20the%20role%20of%20policies%20and%20procedures%20in%20saturated%20markets_1.pdf

MICROFINANCE EVENT: US Agency for International Development (AID) to Host Seminar, “Sound Expansion of Mobile Financial Services: A Risk Matrix Approach for Developing Enabling Environments”, Washington, DC, USA, October 21, 2011, Available in Person and Online on Microenterprise Learning Information and Knowledge Sharing (microLINKS), Knowledge-Driven International Development (KDID) Portal

Event Name: Sound Expansion of Mobile Financial Services: A Risk Matrix Approach for Developing Enabling Environments

Event Date: October 21, 2011, 9:00am – 10:30am

Event Location: Online or at QED Group LLC, 1250 Eye Street NW, 11th Floor, Washington, DC 20005, USA

MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Governor Mallam Sanusi Lamido Calls Islamic Finance “Dynamic and Competitive”

In a recent seminar aimed at promoting awareness of Islamic banking models, Central Bank of Nigeria (CBN) Governor Mallam Sanusi Lamido reportedly predicted that non-interest banking will make a major impact on the Nigerian economy.

MICROCAPITAL BRIEF: Microfinance Institutions in India’s Andhra Pradesh State Seek Government, Commercial Bank Assistance in Restructuring Loans

The Microfinance Institutions Network (MFIN), an association of 39 Indian microlenders, has reportedly approached the government of the Indian state of Andhra Pradesh with a proposal to ease repayment terms for distressed borrowers in return for simplifying government-mandated underwriting procedures.

MICROCAPITAL BRIEF: Supreme Court of India Sends SKS Back to Andhra Pradesh High Court to Challenge Microfinance (Regulation of Moneylending) Act of 2010

SKS Microfinance, an Indian microfinance institution (MFI), recently was directed by the Supreme Court of India, the country’s apex court, to plead its case against the enforcement of the Regulation of Microlending Act of the Indian state of Andhra Pradesh (AP), in front of the AP High Court, the state’s apex court.