Published by Legatum Ventures; May 2011; 11 pages; available at http://www.legatum.org/attachments/MicrofinanceCrisis.pdf
Event Name: Central Asian Microfinance Fair 2011
Event Date: July 7 – July 8, 2011
Mr Sushil Munhot, chairman and managing director of the government-owned Small Industries Development Bank of India (SIDBI), recently argued in an interview with Indian newspaper The Economic Times that SIDBI complements commercial banks while also offering the added value of providing equity funding to small- and medium-sized enterprises (SMEs).
The Reserve Bank of India (RBI), India’s central banking authority, recently announced that it has accepted – with some modifications – the framework of recommendations issued by the Malegam Committee for the country’s microfinance industry.
The Central Bank of Nigeria (CBN), the nation’s central banking authority, recently announced that it has commenced inspections to assess the level of compliance with its operational guidelines at the 103 microfinance institutions (MFIs) that were granted approval-in-principle after being among the 224 MFIs that had their licenses revoked in September 2010.
Multiple Indian newspapers have cited an unnamed report on Indian microfinance regulation from global ratings agency Fitch that reportedly states that a single regulatory body is crucial to ensuring a stable Indian microfinance sector and that future legislation affecting microfinance should be developed through cooperative efforts between state and federal authorities.
Alan Patricof, Founder and Managing Director of US-based venture capital company Greycroft Partners, argues in a recent issues of Fortune magazine that while microfinance institutions (MFIs) “do play an important role in development, there is an even greater need to support small and medium-sized enterprises (SMEs), which have the greatest potential for job growth in most places around the world” .
Eight years after first releasing the “Guiding Principles on Regulation and Supervision of Microfinance,” CGAP (Consultative Group to Assist the Poor) has released a revised draft of the document (with a revised name) that reflects changes in the global microfinance sector.
MFTransparency, a US-based nongovernmental organization (NGO) that provides information on credit products and pricing, has published updated pricing data for Cambodia. The updated data builds on the original data published in 2009 as part of its collection of international microloan product pricing data.
Ignacio Mas, Senior Advisor to the Financial Services for the Poor Initiative at the Bill & Melinda Gates Foundation, and John Staley, Director of Finance and Shared Services at Equity Bank of Kenya, recently posted an entry on the Stanford Social Innovation Review (SSIR) blog titled “Are We Serious About Financial Inclusion for All?” . Mr Mas and Mr Staley highlight the importance of increasing access to financial services in developing countries and outline their four suggestions for regulators and financial service providers to advance financial inclusion.
A new Focus Note from CGAP (Consultative Group to Assist the Poor) examines data from CGAP’s annual surveys on cross-border microfinance funding to provide an overview of the microfinance funding landscape and trends in cross-border funding .
T Keyzom Ngodup, co-founder and executive director at Ideas sYnergy, an Iraq-based consulting company, recently reported that there are currently six microfinance institutions (MFIs) providing Islamic microfinance services across the Anbar, Kirkuk, Ninewa and Tikrit regions of Iraq. One of these is Al-Takadum, which operates in the Anbar region, the others are not named.
Business Standard, an Indian newspaper, has reported that SEED Financial Services, an Indian consulting, planning and implementation agency; Financial Information Network and Operations Limited (FINO), an Indian technology company that seeks to enable financial inclusion; and A Little World, a technology company based in India are seeking private equity funding to scale their business correspondent operations. Business correspondents are individuals or organizations that are permitted to “raise deposits; disburse tiny loans; recover bad loans; sell micro insurance, mutual funds, pension products and other third-party products; and receive and deliver small value remittances” on behalf on banks .
Fondazione Giordano Dell’Amore, an Italian foundation, is accepting applications for its Microfinance Best Practices International Award 2011. The award aims to increase the understanding of microfinance as a tool to fight poverty and social exclusion and to encourage microfinance practitioners to share successful practices. The focus of the award for 2011 is “transparency, client protection and social impact.”
CGAP Microfinance Blog, operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by Mohammed Khaled, a CGAP representative for the Middle East-North Africa Region, that explores the implications for microfinance institutions (MFIs) of the recent wave of demonstrations and resulting leadership changes that have occurred in the Middle East and North Africa. Mr Khaled says that while it “could be too early to analyze the impact of recent events in the Arab world on microfinance, one can conclude some general and common lessons despite differences among countries” . Mr Khaled argues that the following areas are of the utmost importance: emergency plans, strategic partnerships with clients, internal control systems and job creation .
In Bangladesh, 3.7 million people have reportedly signed a petition urging the prime minister of Bangladesh to allow Dr Yunus to continue as the head of Grameen Bank. The event, organized by “The Citizens’ Committee to Protect the Honour of Nobel Laureate Professor Yunus,” was held after the Bangladesh High Court upheld the argument of the government of Bangladesh invalidating the original appointment of Dr Yunus as the managing director of Grameen Bank.
Event Name: Developing Inclusive Financial Systems: The CGAP Course for Funders of Microfinance
Event Date: June 6 – June 10, 2011 THIS EVENT HAS BEEN CANCELLED
Event Location: Dakar, Senegal
Central Bank of Nigeria (CBN) Governor Mallam Sanusi Lamido Sanusi has reportedly explained the delay in the release a proposed microfinance regulatory framework saying, “if we are going to have 2,000 microfinance institutions, I want to know that we have the capacity to regulate and supervise those institutions” .