Category: Regulation

MICROCAPITAL BRIEF: SKS Microfinance Announces Interest Rate Slash in India

SKS Microfinance, a for-profit microfinance institution (MFI) in India, has announced a universal cut in “effective” interest rates charged to microfinance borrowers from 26.7 percent to 24.6 percent. Continue reading

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MICROCAPITAL BRIEF: Founder of Grameen Bank and Nobel Peace Prize Winner Dr Muhammad Yunus Speaks Out Against the Commercialization of Microfinance Institutions (MFIs)

Dr Muhammad Yunus, founder of Grameen Bank and winner of the Nobel Peace Prize for his work in microcredit, has again spoken out against the commercialization of microfinance institutions (MFIs) and their deviation from the mission of poverty alleviation. Continue reading

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MICROCAPITAL BRIEF: Japan, Asian Development Bank (ADB) Aim to Help Mongolia Strengthen Financial Regulations, Improve Financial Education for Poor through Television Drama

A USD 2.5 million grant from Japan’s Fund for Poverty Reduction, which is financed by the Japanese government and administered by Asian Development Bank (ADB), will be used to attempt to strengthen the regulation of Mongolia’s savings and credit cooperative market. Continue reading

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MICROCAPITAL BRIEF: Government of Nigerian State of Ondo and Bank of Industry (BOI) Disburse $13m to Microfinance Scheme

The government of the Nigerian state of Ondo disbursed NGN 2 billion (approximately USD 13 million) to create the Micro, Small and Medium Enterprises Development Fund, which will provide wholesale funding and refinancing liquidity for microfinance institutions (MFIs). Continue reading

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MICROFINANCE BRIEF: Bangladesh Government to Investigate Allegations of “Financial Irregularities” Against Microfinance Institution (MFI) Grameen Bank

The Bangladesh government recently announced that it will form a committee to investigate allegations of “financial irregularities” against Grameen Bank, a microfinance institution (MFI) started in Bangladesh by Dr Muhammad Yunus. Continue reading

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MICROCAPITAL BRIEF: Microfinance Experts Say “Microcredit Is Not The Enemy”

The Financial Times, a UK-based newspaper, recently published an opinion piece titled “Microcredit is not the enemy,” which examines the recent microfinance trouble in the Indian state of Andhra Pradesh and some of the misperceptions that have subsequently emerged that deem the industry as “a flawed idea.” Continue reading

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MICROCAPITAL BRIEF: Local Government in Indian State of Andhra Pradesh Considers Additional Microfinance Regulation, Requires Disclosure of Operational Procedures

The government of the Indian state of Andhra Pradesh, where the microfinance industry has been described as experiencing a crisis, is reportedly considering new legislation to refine an ordinance that was passed in October 2010 in response to a series of suicides said to be linked to debt collector harassment. Continue reading

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MICROCAPITAL BRIEF: Intellecap Publishes White Paper Analyzing Events Leading Up to Andhra Pradesh Microfinance Lending Crisis and State, Media Responses to the Crisis

Intellecap, a social-sector advisory firm with offices in India and the US, has released a white paper analyzing the events leading up to the ongoing microfinance lending crisis in Andhra Pradesh, a state on the southeastern coast of India. Continue reading

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MICROCAPITAL BRIEF: The World Council of Credit Unions (WOCCU) and Federacion Nacional de Cooperativas de Ahorro y Credito (FENACOAC) of Guatemala Partner to Launch Savings Guarantee Fund

The World Council of Credit Unions (WOCCU), a US-based global trade association for credit unions, and the Federacion Nacional de Cooperativas de Ahorro y Credito (FENACOAC), an association of credit unions and cooperatives in Guatemala, have partnered to launch Mi Cooperativa (MICOOPE) Savings Guarantee Fund, a private deposit insurance institution aiming to serve FENACOAC holders of savings and share accounts in Guatemala. Continue reading

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MICROCAPITAL BRIEF: The International Finance Corporation (IFC) Publishes “Doing Business 2011: Making A Difference for Entrepreneurs,” Analysis of Business Regulation Worldwide

The International Finance Corporation, a World Bank Group member created to support private sector development, recently released the annual report “Doing Business 2011: Making A Difference for Entrepreneurs,” which examines the impact of regulations that affect business activity. Continue reading

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MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Grants Transparency Certificates to Microfinance Investment Vehicles (MIVs) That Adhere to Environmental, Social and Governance (ESG) Standards

CGAP (Consultative Group to Assist the Poor), a policy and research center dedicated to enhancing financial access for the world’s poor, has announced its granting of Transparency Certificates to several microfinance investment vehicles (MIVs) that are in compliance with its environmental, social and governance (ESG) guidelines for MIVs. Continue reading

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MICROCAPITAL BRIEF: Indian State of Karnataka to Start State-run Microfinance Institution

The government of Karnataka, a state in India, recently announced plans to start a state-run microfinance institution (MFI) with an investment of INR 5 billion (approximately USD 110 million), reportedly making it the second state in India to run an MFI, the other being Andhra Pradesh. Continue reading

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