Category: Regulation

MICROCAPITAL BRIEF: African Insurance Organization (AIO) Inaugurates Microinsurance Committee

The African Insurance Organization (AIO), a Cameroon-based nonprofit that seeks to promote intra-African cooperation in developing Africa’s insurance and reinsurance industry, recently inaugurated a Microinsurance Committee to oversee the growth of microinsurance on the continent. Continue reading

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MICROCAPITAL BRIEF: Government of Sri Lanka Proposes Long-Delayed Regulations for Microfinance Institutions (MFIs)

The government of Sri Lanka recently proposed a three-tier regulatory and supervisory framework updating a previously proposed law that, if passed, would be applicable to Sri Lankan microfinance institutions (MFIs) that accept deposits from the public. Continue reading

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MICROCAPITAL BRIEF: Government of Cameroon Partners with United Nations Development Program (UNDP), International Fund for Agricultural Development (IFAD), United Nations Capital Development Fund (UNCDF) To Consolidate Microfinance Sector

The government of Cameroon recently partnered with three agencies of the United Nations to consolidate the country’s microfinance sector by increasing governmental regulations and mergers of microfinance institutions (MFIs). Continue reading

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MICROCAPITAL BRIEF: Depositors Withdraw Savings from Microfinance Firms in Kumasi, Ghana amid Lack of Safety Nets for Clients

High rates of deposit withdrawals reportedly are occurring in Ghanaian city of Kumasi, which allegedly is attributed to the lack of safety nets protecting depositors in case firms are shut down by the Bank of Ghana (BoG), the country’s main financial regulator. Continue reading

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MICROCAPITAL BRIEF: MFX Solutions Launches “Risk Management Initiative in Microfinance (RIM)” for Microfinance Institutions

MFX Solutions, a US-based company that provides currency hedging solutions for microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), recently announced the launch of the Risk Management Initiative in Microfinance (RIM), which will aim to mitigate challenges MFIs face in risk management; promote best practices; institute global MFI risk management standards; and protect MFIs and their clients from internal and external risks. Continue reading

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MICROCAPITAL BRIEF: Myanmar Licences First Private Insurers

The Myanmar government reportedly has granted operating licenses to five insurance companies in line with its financial reform policy. International Kanbawza Insurance, a subsidiary of Kanbawza Bank (KBZ) is the first insurance company to have started operation in the city of Yangon, providing both standard insurance and microinsurance[1]. Continue reading

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MICROCAPITAL BRIEF: Jamaica’s Ministry of Finance Delays Microfinance Institutions’ Exemptions from Money Lending Act, Blocking Wholesale Funding from Development Bank of Jamaica

Members of the Jamaica Micro Financing Association (JaMFA), a committee of eight microfinance institutions formed in 2008, reportedly have had their access to relatively cheap wholesale funds from the Development Bank of Jamaica (DBJ), a state-owned bank, blocked due to delays in the Ministry of Finance in renewing their exemptions from the Money Lending Act, a law established in Jamaica in 1938 [1]. Continue reading

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MICROCAPITAL BRIEF: Philippines Allows Foreign Investors to Hold Stakes of up to 60% in Rural Banks

Philippine President Benigno Aquino reportedly has signed a law, entitled “An Act Allowing the Infusion of Foreign Equity in the Capital of Rural Banks,” that will allow foreign investors to own as much as 60 percent of the voting stock in Philippine “rural banks,” which are sponsored by the government of the Philippines for the purpose of promoting economic development in rural areas. Continue reading

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MICROCAPITAL BRIEF: Reserve Bank of India Raises Interest Margin Cap to 12% for Larger Microfinance Institutions

For non-banking financial companies (NBFCs) and microfinance institutions (MFIs) of all sizes, the Reserve Bank of India (RBI), the country’s central banking institution, recently set the margin cap, the difference between the amount charged to the borrower and the institution’s cost of funds at 12 percent at least until April 1, 2014 [1]. Continue reading

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MICROCAPITAL BRIEF: Insurance Regulatory and Development Authority (IRDA) of India Proposes Microinsurance Firms Provide Maturity Benefit Policies to Boost Sales

In an effort to boost sales of microinsurance in India, the Insurance Regulatory and Development Authority (IRDA), the country’s regulatory body for the insurance industry, reportedly has proposed that microinsurance firms offer policies with maturity benefits [1]. Continue reading

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MICROCAPITAL BRIEF: Azerbaijan Microfinance Association Considers Credit Bureau for Microlenders

Teymur Heybatov, a representative of the Azerbaijan-Central Asia Financial Markets Infrastructure (ACAFI) advisory services project of the World Bank Group’s International Finance Corporation (IFC), reportedly has announced that a meeting will be held with the leadership of the Azerbaijan Microfinance Association (AMA) to discuss establishing a credit bureau for microfinance institutions (MFIs) in Azerbaijan. Continue reading

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MICROCAPITAL BRIEF: Nine Indian Impact Investment Companies Forming “Indian Impact Investor Council”

Nine companies that specialize in impact investment reportedly will be establishing the “Indian Impact Investor Council” (IIIC) to establish guidelines helping investment companies in India regulate their efforts to meet social goals. Continue reading

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MICROCAPITAL BRIEF: State Bank of Pakistan’s Credit Guarantee Scheme for Small, Rural Businesses Extends Loan Repayment Term to 5 Years

The State Bank of Pakistan’s (SBP’s) Credit Guarantee Scheme for Small and Rural Businesses (CGS), which aims to increase financing to small and medium-sized enterprises (SMEs) in rural areas via retail banks, reportedly will extend client loan terms from three years to five years in an effort to increase economic opportunities by facilitating the purchase of tractors and other agricultural tools. Continue reading

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MICROCAPITAL BRIEF: PKF Chartered Accountants Advises Royal Bank Zimbabwe to Downscale to Microfinance Institution

PKF Chartered Accountants, the Zimbabwean member of UK-based businesses services firm PKF International, reportedly has advised Royal Bank Zimbabwe Limited, a defunct bank, to convert its commercial banking license to a microfinance institution (MFI) license, which carries lower capital requirements set by the Reserve Bank of Zimbabwe (RBZ), the country’s central banking institution. Continue reading

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