Category: Risks

MICROCAPITAL BRIEF: Bangladesh Finance Minister: Management Structures in Microfinance Sector Too Dependent on Founders

Bangladesh Finance Minister A M A Muhith reportedly has urged microfinance institutions (MFIs) to adjust their management structures to ensure that the organizations do not destabilize due to the death of a founder. Continue reading

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MICROCAPITAL BRIEF: Bank of Ghana (BoG) Expected to Shut Down Unlicensed Microfinance Institutions MEDLORM Microfinance Limited, African Guarantee Trust, Abbey Cash Microfinance Limited, Swift Financial Services

The Bank of Ghana (BoG), Ghana’s central bank authority, reportedly is expected to halt the operations of four unlicensed microfinance institutions (MFIs): MEDLORM Microfinance Limited, African Guarantee Trust, Abbey Cash Microfinance Limited and Swift Financial Services. Continue reading

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MICROCAPITAL BRIEF: Nigerian Deposit Insurance Corporation (NDIC) Launches Investigation into Managers, Directors of Distressed Microfinance Banks

The Nigerian Deposit Insurance Corporation (NDIC), an agency of the federal government of Nigeria, reportedly has launched an investigation into the NGN 7 billion (USD 44.4 million) owed to the 103 bankrupt microfinance banks (MFBs) by their managers and directors. Continue reading

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MICROCAPITAL BRIEF: Report: “Bosnia’s Microfinance Meltdown” Attributed to Accounting Control Fraud by Microfinance Institution (MFI) Managers

In a recent story on New Economic Perspectives, a website offering policy advice and economic analysis, William K Black comments on David Roodman’s article in the Washington Post, “Microcredit doesn’t end poverty, despite all the hype,” which was published on March 11, 2012. Continue reading

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MICROCAPITAL BRIEF: France’s Groupe de Recherche et d’Échanges Technologies (GRET) Launches Health Microinsurance Pilot Project for Cambodian Garment Workers

French NGO Groupe de Recherche et d’Echanges Technologies (GRET), funded by the French Government’s Agence Francaise de Developpement, is piloting the Health Insurance Project (HIP), a program in Cambodia aimed at funding basic health care services for rural garment workers, reducing their vulnerability to unforeseen risks. Continue reading

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MICROCAPITAL BRIEF: Small Industries Development Bank of India (SIDBI) Requires SKS Microfinance to Lend Only Outside Andhra Pradesh

Small Industries Development Bank of India (SIDBI), a governmental loan wholesaler to microfinance institutions (MFIs) in India, has reportedly required that SKS Microfinance Limited (SKS), an Indian MFI, use proceeds of a recent SIDBI loan for on-lending outside of the state of Andhra Pradesh [1]. Continue reading

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MICROCAPITAL BRIEF: SKS Microfinance Founder Vikram Akula Says “Yunus Was Right” About Dangers of Private Investment to Microborrowers

Vikram Akula, the founder of Indian for-profit microfinance institution (MFI) SKS Microfinance Limited, reportedly acknowledged that Dr Muhammad Yunus was “right” about the challenges of “bringing private capital into social enterprise.” Continue reading

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MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Appoints Debt Recovery Agents to Seek Repayments Owed Microfinance Institutions in Liquidation

The Nigeria Deposit Insurance Corporation (NDIC), an agency of the federal government of Nigeria, has reportedly appointed debt recovery agents (DRAs) for microfinance banks (MFBs) in liquidation to recover “debts owed to the 103 closed MFBs nationwide.” Continue reading

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MICROCAPITAL BRIEF: Microfinance Credit Bureau, MiDAS, Launched by Microfinance Institutions in Philippines

Microfinance institutions (MFIs) Taytay Sa Kauswagan Incorporated (TSKI), Opportunity Kauswagan Bank, CARD Bank, CARD NGO, Negros Women for Tomorrow Foundation Incorporated, Ahon Sa Hirap and ASA Philippines signed a memorandum of agreement creating the Microfinance Data Sharing System (MiDAS) in January of this year after an initial pilot phase in 2011 [1]. Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Role Reversal Revisited, Microinsurance Profitability Business Case, Trends in Cross-Border Funding

Role Reversal Revisited,” by Damian von Stauffenberg and Daniel Rozas, published by MicroRate, 2011, 22 pages, available at http://microrate.com/wp-content/uploads/2012/01/Role-Reversal-Revisited-…

This paper reviews the roles of development finance institutions (DFIs) and private lenders in funding microfinance institutions (MFIs). Continue reading

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MICROCAPITAL BRIEF: “Paris Appeal for Responsible Microfinance” by Convergences 2015 Reaches 600 Signatories

Convergences 2015, a nonprofit based in France that focuses on poverty elimination, is promoting the “Paris Appeal for Responsible Microfinance” in an effort to slow the commercialization of microfinance, arguing that it is inconsistent with development and inclusive finance. Continue reading

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MICROCAPITAL BRIEF: Cambodian Government: Microfinance Interest Rates of Up to 50 Percent Threaten Loss of Land, “Social Instability”

Cambodian government officials reportedly are looking to negotiate down the interest rates on microfinance loans, arguing that current rates are unsustainable for the country’s rural farming population and that defaults are causing many farmers to become landless. [1] Continue reading

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