A recent editorial in The Jakarta Post, a newspaper in Indonesia, examines the issue of access to financial services in Indonesia and highlights financial literacy as an important element in increasing financial inclusion [1]. Continue Reading »

The Social Performance Task Force (SPTF), an initiative set up in 2005 to improve the social performance management of microfinance institutions, released its proposed Universal Standards for Social Performance at its recent annual meeting in the Netherlands. Continue Reading »

A microcredit system reportedly may be launched in Cuba as part of a reform program adopted by the government which specifies that “the credit policy will be essentially oriented towards providing necessary support for activities that stimulate national production and generate hard currency income or replace imports, as well as activities that promote development ”[1]. Continue Reading »

Bangko Sentral ng Pilipinas (BSP), the central bank of the Republic of the Philippines, reportedly is proposing to cut the fees for opening new bank branches and to lift restrictions on the opening of bank branches in the eight “restricted areas” of metro Manila. Continue Reading »

In recent articles published on the websites of newspapers The Guardian of the UK and The Wall Street Journal of the US, journalists, academics and practitioners express concerns about various topics in the microfinance sector including social performance measurement, commercialization and changing methodologies. Continue Reading »

Indian microfinance institutions (MFIs), which have seen a downturn in business and portfolio quality since the Andhra Pradesh crisis that began in late 2010, are considering a business model that would make them intermediaries between commercial banks and poor people in rural areas. Continue Reading »

Myanmar President Thein Sein’s public endorsement in May 2011 for the development of a microfinance sector in the country has triggered interest among aid workers and those already involved in the country’s sprouting microfinance sector. Continue Reading »

The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, reportedly plans to announce new capital base minimums for microfinance banks (MFBs) by the end of June. A new capital requirement is expected to be established for those operating at the national level at NGN 2 billion (USD 12.8 million); the minimum for those at the regional level will decrease to NGN 100 million (USD 640,000) from NGN 1 billion (USD 6.4 million); and the minimum for those at the rural level, with one branch, will remain unchanged at NGN 20 million (USD 128,000). Continue Reading »

Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has imposed a conflict-of-interest restriction on 18 thrift and rural banks that have added microfinance operations through affiliated nongovernmental organizations (NGOs) and foundations in an effort to limit the credit available to directors, owners, stockholders and related interests (DOSRIs). Continue Reading »

The government of Ghana has budgeted EUR 7.5 million (USD 10.6 million) to support the Ghana Interbank Payment and Settlement System (GHIPSS) in an effort to ensure high-quality delivery of financial services and to better serve the under-banked population of Ghana. Ghana’s Finance Minister, Dr Kwabena Duffuor, has been quoted as stating “the funds would allow GHIPSS to implement a countrywide biometric system as well as undertake a rural banking project that uses the National Switch and Smart card payment system, branded as e-zwich…This technology will permit offline transaction and fingerprint recognition making it highly suitable for rural areas and for the uneducated people in our country” [1]. Goals regarding the number of people to be reached and schedule of the project have not been disclosed. Continue Reading »

Frankfurt School of Finance and Management, a private German university, in partnership with Protestant University of Congo, a post-secondary college based in the Democratic Republic of the Congo, is issuing a call for applications for a Masters in Microfinance offered at the Protestant University of Congo. Continue Reading »

Reportedly at the request of microfinance institutions (MFIs) in the country, Bangladesh’s Microcredit Regulatory Authority (MRA) has agreed to lower the number of instalments for microloans and reduce the grace period allowed, so that MFIs may begin collecting repayments 15 days after loan disbursement. Continue Reading »

SKS Microfinance, a microfinance institution (MFI) that serves groups of impoverished women in India, is reportedly considering new business growth avenues in an attempt to increase revenue and improve its reputation. Along with collateral-free loans, four new products would be offered: loans using gold as collateral, housing loans, loans to buy mobile phones and loans to local grocery stores in a supply arrangement with the cash-and-carry chain, Metro. “The pilot projects have been yielding very encouraging results,” says Vikram Akula, chairperson and founder of SKS Microfinance. Continue Reading »

The Central Bank of Nigeria (CBN) recently issued limits on daily cash withdrawals by individuals and corporate customers of NGN 150,000 (USD 962) and NGN 1 million (USD 6,417), respectively, effective June 1, 2012. Continue Reading »

The Ministry of Planning and International Cooperation (MoPIC) in Jordan, with assistance from KfW, a German government-owned development bank, recently developed a new policy framework for the microfinance industry.  Continue Reading »

The State Bank of Pakistan (SBP) is reported to be permitting microfinance institutions (MFIs) to accept gold as collateral to secure microfinance loans. International: The News, a Pakistan-based news source, speculates that SBP has changed its stance on the issue in an effort to boost the issuance of loans following the floods that greatly affected Pakistan in 2010. In a circular reportedly issued to all MFIs in the country, SBP stated, “the negative growth [in 2010] was mainly due to the devastating floods during the third quarter of 2010 that gripped most parts of the country…Moreover, an overall difficult macroeconomic environment continues to challenge the credit growth of microfinance players” [1]. Continue Reading »

By Binh T Nguyen and Robert Vogel, published by Asian Development Bank (ADB), 2011, 126 pages, available at: http://www.microfinancegateway.org/p/site/m/template.rc/1.9.51104/ Continue Reading »

The Indian Ministry of Finance is in the final stages of drafting a new microfinance bill that would transfer all regulatory power over microfinance to the Reserve Bank of India (RBI), the country’s central bank, in an effort to create a uniform framework for all microfinance institutions (MFIs), according to Indian news website Moneycontrol.com. Continue Reading »