Category: Regulation

MICROCAPITAL BRIEF: Policy Studies Organization (PSO) Releases “Microfinance, Commercialization and Ethics” by Reinhard Schmidt of Johann Wolfgang Goethe-Universitat Frankfurt am Main

Poverty & Public Policy, a journal published by the Policy Studies Organization (PSO), a US-based policy think tank, has announced the release of a paper titled, “Microfinance, Commercialization and Ethics” by Reinhard Schmidt of Germany’s Johann Wolfgang Goethe-Universitat Frankfurt am Main. Continue reading

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MICROCAPITAL BRIEF: Haitian Microfinance Industry Still Struggling in Wake of Earthquake, Increased Regulation on the Horizon

Ten months after the major earthquake that rattled Haiti in January 2010, microfinance institutions (MFIs) and banks still struggle to regain clients, manage late payments and deal with increasing loan defaults. New industry regulation is also expected after requests to the government from MFIs and banks that are concerned that their clients’ money is not well-protected in case of financial institution default. Continue reading

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MICROFINANCE PAPER WRAP-UP: African Financial Systems: A Review by Franklin Allen, Isaac Otchere and Lemma Senbet, Published by The Wharton Financial Institutions Center

by Franklin Allen, Isaac Otchere and Lemma Senbet, published by The Wharton Financial Institutions Center, March 2010, 69 pages, available at: http://www.microfinancegateway.org/gm/document-1.1.8282/African%20financial%20systems.pdf Continue reading

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MICROCAPITAL BRIEF: Venezuela to Implement Universal and Microfinance Banking and De-Commercialize Current Financial System

Venezuela’s new financial infrastructure, recently approved by the National Assembly, will replace the General Law on Banks and establish universal banking, microfinance banking and money exchange offices that will launch at an unspecified date. Continue reading

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MICROCAPITAL BRIEF: India’s Microfinance Industry on Brink of “Collapse” Due to Credit Freeze in State of Andhra Pradesh

India’s microfinance industry is reportedly on the verge of “collapsing,” according to the UK’s Financial Times newspaper, due to politically-triggered bank freezes on credit in the state of Andhra Pradesh, where outstanding loans reportedly measure USD 2.7 billion distributed to 6.7 million borrowers. Continue reading

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MICROFINANCE EVENT: USAID-Tijara to Hold Inclusive Financial Services Stakeholders’ Conference 2010 in Erbil, Iraq, November 28-30, 2010

Event Name: Inclusive Financial Services Stakeholders’ Conference 2010. “Putting the Poor First: Improving the Regulatory Environment, Industry Infrastructure, and Institutional Performance for Greater Impact”

Event Date: November 28-30, 2010

Event Location: Erbil, Iraq Continue reading

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MICROCAPITAL BRIEF: Vice President of the Economic Commission of Nicaragua Urges the Passing of a Microfinance Law in Wake of “No Pago” Movement, Liquidation of Microfinance Institution Banco del Exito’s (Banex)

The Vice President of the Economic Commission of the National Assembly of Nicaragua, Freddy Torres, reportedly warned Nicaragua’s citizens in November 2010 that the country may lose up to USD 400 million if a microfinance law promoting regulation is not approved before year’s end. Continue reading

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MICROCAPITAL BRIEF: Payment Strike Hits India’s Andhra Pradesh State As Local Governments Urge Microfinance Borrowers Not to Repay

In India’s Andhra Pradesh state, local government officials are reportedly telling microfinance borrowers to stop repaying lenders even if they have the money to do so. The state government there has begun to increase restrictions on interest rates and arrest thuggish lending agents for fear that high rates and harassment from lenders has contributed to an overwhelming debt burden on microborrowers and suicides in the region. Continue reading

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MICROCAPITAL BRIEF: Serbian Government Reviews Microfinance Law Aimed to Improve Lending to Low-Income Citizens

Deputy Prime Minister Bozidar Delic of Serbia recently announced that the Serbian government is reviewing a law that will allow for microfinance institutions (MFIs) in the country to lend directly to their clients instead of lending through the current framework, which only allows lending through local banks. Continue reading

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MICROCAPITAL BRIEF: Backed by G20, Ashoka Changemakers Announces 14 Winners of Small and Medium-sized Enterprise (SME) Finance Challenge

Ashoka Changemakers announced this month that it has selected 14 proposals as the winners of the SME Finance Challenge, which is hosted by Ashoka, a US-based nonprofit organization that invests in social entrepreneurship, and backed by the G-20, a group of financial ministers and central bank authorities representing 20 major economies. Continue reading

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MICROCAPITAL BRIEF: Reserve Bank of India to Publish Report on Regulating the Indian Microfinance Industry by End of January 2011

According to the website of the Hindustantimes Newspaper, the Reserve Bank of India (RBI), the central bank of India, is preparing a report making recommendations on regulating the Indian microfinance industry, which has recently come under intense scrutiny. Continue reading

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MICROCAPITAL BRIEF: Former CEO of Jammu and Kashmir Bank Calls Efforts to Regulate Indian Microfinance Institutions (MFIs) “Flawed”, Argues NABARD Has Conflicts of Interest

Haseeb Drabu, former CEO of Jammu and Kashmir Bank, a bank owned by the Indian state governments of Jammu and Kashmir, recently wrote an article published on the LiveMint website calling recent efforts by authorities to rein in the Indian microfinance industry “flawed”. Continue reading

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