Mathias Omeh, National President of the Nigerian National Association of Microfinance Banks (NAMB), announced the release of a ten-point plan to revitalize his country’s microfinance sector [1]. Omeh was elected to the position less than a month ago on promises of increased scrutiny and public microfinance education [2]. Continue Reading »

The government of the Indian state of Andhra Pradesh recently announced it would file criminal cases against any microfinance institution (MFIs) found to have used coercion to recover loans. Continue Reading »

A new law to regulate the microfinance sector in Uganda is expected before the reading of the 2010/2011 budget in June [1]. The plan was announced by Ruth Nankabirwa, the microfinance state minister at the third Financial Inclusion Advisors Conference recently hosted in the capital, Kampala. According to Ms. Nankabirwa, membership in the microfinance sector has grown from 644,318 in 2008 to 1,154,715 in 2009. A large proportion of funds within the sector are unregulated – there are over 1,340 microfinance institutions (MFIs) in Uganda that are not regulated. Ms. Nankabirwa argues that regulating the microfinance sector will increase consumer confidence and encourage more people to use its services. Continue Reading »

The Central Bank of Kenya (CBK) has passed a law allowing banks, deposit-taking microfinance institutions (MFIs) and mortgage finance companies to open branches through third parties, or agency banks. Continue Reading »

The International Fund for Agricultural Development’s (IFAD’s) Financing Facility for Remittances (FFR), a USD 18 million fund that seeks to reduce poverty by leveraging remittances for development in rural areas of developing countries, recently announced its Call for Proposals 2010. Continue Reading »

A recent article featured on Livemint.com, an Indian business newspaper owned by the Wall Street Journal, discusses the debate surrounding the code of conduct recently adopted by the Microfinance India Network (MFIN), a trade association made up of 38 Indian non-banking finance companies (NBFCs) engaged in microfinance. Continue Reading »

A group of microfinance institutions (MFIs) across Nigeria, including microfinance banks, co-operative societies and NGOs, has joined together to form the Association for the Survival/Sustenance of Microfinance Institutions. The primary goal of the association is to facilitate funding from international financial institutions such as the International Monetary Fund (IMF) and the International Finance Corporation (IFC). Continue Reading »

The Partnership for Making Finance Work for Africa (MFW4A), an initiative that aims to coordinate financial sector development between African governments, the private sector and development organizations, recently launched a website, www.mfw4a.org. Continue Reading »

The Kenya Women Finance Trust (KWFT), a microfinance institution (MFI) that currently provides credit to over 334,000 women clients, has been granted a license to accept deposits. Continue Reading »

In an interview with Vikash Humar, Editor in Chief of Microfinance Focus, Mohammad Yunus, founder of Grameen Bank, blasted profit-seeking microfinance institutions (MFIs). He likened these institutions, which he defined as those who charge more than 15 percent plus the cost of funds, to the loan sharks that necessitated the foundation Grameen. While reluctant to name names, Mr Yunus offered Compartamos Banco, a Mexican microfinance bank founded in 1990, as an example of one of these firms. Mr Yunus additionally spoke out against IPOs by MFIs, such as Compartamos Banco and SKS Microfinance, a microfinance institution (MFI), launched in 1998, which caters to women clients in India. Continue Reading »

The Central Bank of Nigeria (CBN) announced plans to repeal universal banking by September of 2011. Universal banking, introduced to Nigeria in 1999, allows a bank to function in all sectors under a single body of regulation [1]. The CBN would revert to specialized banking, its pre-1999 regulation structure, where banks are licensed to act in a single sector. This new structure would include microfinance-specialized banks as their own category. Samuel Oni, CBN Director of Banking Supervision, said the regulatory reform would reduce operating risk and bring the CBN closer in line with the International Financial Reporting Standards [2], a body of best practices maintained by the International Accounting Standards Board. Continue Reading »

SKS Microfinance, an Indian microfinance institution (MFI) registered as a non-banking financial company (NBFC), reportedly has plans to apply for a commercial banking license. An unnamed source told Indian news agency, Press Trust of India, that “SKS Microfinance is likely to approach the Reserve Bank [of India] for a banking license once the guidelines are issued.” Continue Reading »

The Russian Government has submitted a draft law to the State Duma, the Russian parliament’s lower chamber, entitled “On Microfinance Activity and Microfinance Institutions (MFIs)”, which aims to create a register of MFIs as well as establish a legal framework for those companies offering microfinance services. Continue Reading »

After a joint examination exercise with the Central Bank of Nigeria (CBN) and a slew of complaints from depositors of microfinance institutions (MFIs) that have shut down, the Nigeria Deposit Insurance Corporation (NDIC), the country’s financial industry regulator, recently began a nationwide investigation of MFIs. Continue Reading »

The Finance Minister of Bangladesh, Mr Abul Maal Abdul Muhith, recently told the Bangladeshi Parliament that, in collaboration with Transparency International Bangladesh, an international non-governmental organization aimed at fighting corruption, the government would limit interest rates charged by microfinance institutions (MFIs). Continue Reading »

Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, recently released its 2009 annual report highlighting developments in the Philippine economy and microfinance industry. Continue Reading »

In a recent op-ed piece published in Nigeria’s online Daily Trust, Ms Ijeoma Kalu urges the Central Bank of Nigeria (CBN) to tighten regulation of the microfinance industry and ensure “that only professionals are permitted to practice.” Continue Reading »

The Ghana Microfinance Institutions Network (GHAMFIN), an informal network of institutions and individuals in the microfinance industry, recently expressed concern over the prevalence of unaccredited microfinance institutions (MFIs). Continue Reading »