Category: Regulation

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). Continue reading

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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]. Continue reading

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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. Continue reading

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MICROCAPITAL BRIEF: Fairkampaign Calls for Comments on “Contents of a Fair Microfinance Loan Agreement”

Fairkampaign, an initiative of Dutch nonprofit International Legal Alliances Microjustice for All, has announced a call for comments on the contents of a “fair microfinance loan agreement.” Continue reading

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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. Continue reading

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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 Continue reading

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Written by Comments Off on 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 Posted in Regulation, Trends/Challenges

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 Continue reading

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Written by Comments Off on 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 Posted in Events, Regulation

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. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Governor Mallam Sanusi Lamido Calls Islamic Finance “Dynamic and Competitive” Posted in Africa, Regulation

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. Continue reading

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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. Continue reading

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MICROCAPITAL BRIEF: Brazilian Insurance Regulator Superintendencia de Seguros Privados (SUSEP) to Release Microinsurance Regulatory Framework

Superintendencia de Seguros Privados (SUSEP), Brazil’s insurance regulator, recently announced that it will release a framework for the regulation of microinsurance by the end of October [1]. Continue reading

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MICROCAPITAL BRIEF: Reserve Bank of India Requires Microfinance Institutions to Hold Loans for 9 Months Before Securitizing

The Reserve Bank of India (RBI), India’s central banking authority, has announced that lenders must follow new regulatory standards before securitizing their loans for sale to investors. Continue reading

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MICROCAPITAL BRIEF: Government of Botswana to Stop Facilitating Repayment of Microfinance Loans by Civil Servants

The government of Botswana has announced that it will cease acting as an intermediary between microfinance institutions (MFIs) and civil servants for the collection of microloans through the provision of “deduction-at-source” from public servants’ wages [1]. Continue reading

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MICROCAPITAL BRIEF: On Financial Access Initiative Website, Daniel Rozas Highlights Roles of Credit Bureaux, Smart Campaign, Local Regulations to Address Multiple Borrowing in Microfinance

In an article recently published on the website of the US-based Financial Access Initiative, Brussels-based microfinance consultant Daniel Rozas examines multiple borrowing and proposes several ways address the issue. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: On Financial Access Initiative Website, Daniel Rozas Highlights Roles of Credit Bureaux, Smart Campaign, Local Regulations to Address Multiple Borrowing in Microfinance Posted in Regulation, Trends/Challenges

MICROCAPITAL BRIEF: Kredits Offers Microfinance Institutions “Multi-Jurisdictional Regulatory Compliance Software Solution” in Kazakhstan, Brazil, India, Madagascar

Kredits, a US-based technology provider to microfinance institutions (MFIs), recently announced that it is providing a “multi-jurisdictional regulatory compliance software solution” to unnamed MFI clients in Kazakhstan, Brazil, India and Madagascar.  The product is soon to be made available to additional countries in Southeast Asia and Africa [1]. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Kredits Offers Microfinance Institutions “Multi-Jurisdictional Regulatory Compliance Software Solution” in Kazakhstan, Brazil, India, Madagascar Posted in Key Players, Regulation, Technology

MICROCAPITAL BRIEF: Central Bank of Nigeria Approves New Capital Base Requirements for Microfinance Banks (MFBs), MFBs Await Capital Verification Results

The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, has approved the new capital base requirements for microfinance banks (MFBs) as per the expectations reported in the MicroCapital story dated June 28. Continue reading

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MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Reduces Provision Requirements for Microfinance Loans

The State Bank of Pakistan (SBP) has withdrawn general provision requirements for loans extended by microfinance banks (MFB) that are secured against collateral. Continue reading

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MICROCAPITAL BRIEF: Dr Muhammad Yunus Suggests Microfinance “Misinterpreted” as Charity in the Arab World due to Outdated Regulation

Dr Muhammad Yunus, the founder of Bangladeshi microfinance institution (MFI) Grameen Bank, recently argued that the Arab world has “misinterpreted the system’s true principles” by operating it as a “charity affair” [1]. Continue reading

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