MICROFINANCE EVENT: Hanson Wade Presents “Investment & Innovation in Microfinance: Africa”, September 19 – 20, 2012, Accra, Ghana

Event Name: Investment & Innovation in Microfinance: Africa

Event Date: September 19 to September 20, 2012

Event Location: Accra, Ghana

MICROCAPITAL BRIEF: 300 Susu Collectors in Ghana Submit to Regulated Microfinance Regime

The Ghana Cooperative Susu Collectors Association (GCSCA), an umbrella organization of regional cooperatives of susu collectors in Ghana, has announced that 300 of its susu collector members have submitted applications under the new rules and requirements for microfinance licensing under the Bank of Ghana (BOG) [1, 2]. Traditional susu collectors serve predominantly low-income earners with access to savings and credit services.

MICROFINANCE PUBLICATION ROUND-UP: Impact of Property Insurance in Ghana; Priority Issues for the Microfinance Sector; Investment in Sub-Saharan Africa

“’Doing the Math’ with Property Insurance in Ghana;” by Barbara Magnoni, et al; published by the Microinsurance Centre; May 2012; 9 pages; available at: http://www.microinsurancecentre.org/milk-project/milk-docs/doc_details/868-milk-brief-10-qdoing-the-mathq-with-property-insurance-in-ghana.html

MICROCAPITAL BRIEF: Nepal Rastra Bank (NRB) Limits Microloan Interest Rate Changes, Adjusts Provisions for “Deprived-Sector” Lending

Nepal Rastra Bank (NRB), the central bank of Nepal, has reportedly issued a circular mandating that financial institutions permit borrowers to repay loans at the original given interest rate in the event of an increase in the interest rate.

MICROFINANCE PUBLICATION ROUND-UP: Financial Service Needs in Mexico; Evaluation of an Insurance Education Radio Campaign in Kenya; Self-Assessment of Governance

“A Structured Approach to Understanding the Financial Service Needs of the Poor in Mexico;” by Xavier Faz and Paul Breloff; published by CGAP (Consultative Group to Assist the Poor); May 2012; 4 pages; available at: http://www.cgap.org/gm/document-1.9.57615/Brief_MexicoSegmentation.pdf

MICROCAPITAL BRIEF: Central Bank of Nigeria to Establish Special Court for Microfinance Debtors

The Central Bank of Nigeria (CBN), Nigeria’s central bank, reportedly is moving to establish a special court to hear cases on loan defaults  by customers of microfinance banks. According to a statement attributed to Olufemi Fabanwo, the Director of Other Financial Institutions Department of CBN,  the establishment of this court is “vital to the survival of the subsector.” CBN has been working with the Department of Justice to establish these courts.

MICROCAPITAL BRIEF: Bangladesh Finance Minister: Management Structures in Microfinance Sector Too Dependent on Founders

Bangladesh Finance Minister A M A Muhith reportedly has urged microfinance institutions (MFIs) to adjust their management structures to ensure that the organizations do not destabilize due to the death of a founder.

MICROFINANCE PUBLICATION ROUND-UP: Global Microfinance Equity Valuation Survey; Microfinance Governance Indicators; Audio Report: Role of Brokers in Microinsurance

Volume Growth and Valuation Contraction: Global Microfinance Equity Valuation Survey 2012;” by Jasmina Glisovic, et al; published by CGAP (Consultative Group to Assist the Poor) and JP Morgan; May 2012; 16 pages; available at: http://www.microfinancegateway.org/gm/document-1.9.57526/VolumeGrowth.pdf

MICROFINANCE PAPER WRAP-UP: “Financial Inclusion and Stability: What Does Research Show?”; by Robert Cull, Asli Demirgüç-Kunt, and Timothy Lyman; CGAP (Consultative Group to Assist the Poor) Brief

By Robert Cull, Asli Demirgüç-Kunt, and Timothy Lyman, published by CGAP (Consultative Group to Assist the Poor), May 2012, 4 pages, available at: http://www.cgap.org/publications/financial-inclusion-and-stability-what-does-research-show-0

MICROCAPITAL BRIEF: India’s Insurance Regulatory and Development Authority (IRDA) Finds “Massive Problems” with Practices of SKS Microfinance

In conducting a set of field inspections, the Insurance Regulatory and Development Authority (IRDA), an Indian supervisory body, reportedly has detected “massive problems” in the handling of insurance by SKS Microfinance, a microfinance institution (MFI) in India.

MICROCAPITAL BRIEF: Bhutan Royal Monetary Authority (RMA) Set to Approve Financial Inclusion Policy, Wholesale Microfinance Lender

The Royal Monetary Authority (RMA) of Bhutan, the country’s central bank, reportedly is finalizing a Financial Inclusion Policy (FIP) to enhance the country’s microfinance sector.

MICROCAPITAL BRIEF: National Insurance Commission (NIC) of Ghana Targets 10% Microinsurance Penetration in Three Years

The National Insurance Commission (NIC) of Ghana, the regulatory authority for the country’s insurance industry, reportedly has announced a goal to increase penetration of the microinsurance market from the current 1 percent of the population to ten percent within three years.

MICROFINANCE PUBLICATION ROUND-UP: Microfinance Information Exchange Diamond Rating System; Savings-Linked Microinsurance in India; Banking Correspondents in Brazil

Diamonds No Longer Forever;” by Scott Gaul; published by Microfinance Information Exchange (MIX); April 2012; available at: http://www.themix.org/publications/microbanking-bulletin/2012/04/diamonds-no-longer-forever

MICROCAPITAL BRIEF: Microcredit Regulatory Authority (MRA) of Bangladesh Orders Microfinance Institutions to Obtain Permission to Offer Services Other Than Microcredit

The Microcredit Regulatory Authority (MRA), the supervisor of NGO microfinance institutions (MFIs) in Bangladesh, reportedly has advised MFIs to obtain permission by June 30 for sertvices offered other than microcredit.

MICROCAPITAL BRIEF: Chinese Government Starting Rural Financial Reform Project in Lishui

The People’s Bank of China (PBOC), China’s central banking authority, reportedly has announced a pilot program in the city ofLishuito encourage the establishment of village banks, microcredit firms and rural credit cooperatives to expand financial services for villagers and increase agricultural production.

MICROCAPITAL BRIEF: Microcredit Regulatory Authority of Bangladesh Revokes Licenses of 12 Microfinance Institutions, to Deploy Observers to Others

The Microcredit Regulatory Authority (MRA) of Bangladesh reportedly has announced that plans are in place to appoint administrators to observe troubled microfinance institutions (MFIs) in the country.

MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN): MSME Development Fund Not for Bailing out Microfinance Banks

The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, reportedly has asserted that its Micro-, Small and Medium Enterprises Development fund, which is due to be launched in June, is designed for capacity building and not to bail out distressed microfinance banks (MFBs).

MICROCAPITAL BRIEF: Kenyan Boma Project Certified on Grameen Foundation’s Progress out of Poverty Index

The Boma Project, a nonprofit organization in northern Kenya that aims to improve the ability of women to earn their own incomes, recently has become the first African organization to be certified by Grameen Foundation, a US-based nonprofit, on the Progress out of Poverty Index (PPI) Advanced Standards of Use.