Category: South Asia, East Asia and Pacific

MICROFINANCE PUBLICATION ROUND-UP: Effects of Female Leadership on Microfinance Institutions (MFIs); Impact of Microcredit in Morocco; Social Performance Management Guide

Female Leadership, Performance, and Governance in Microfinance Institutions;” by Reidar Øystein Strøm, Bert D’Espallier and Roy Mersland; published by Elsevier; 2014; 16 pages; available for purchase at http://www.sciencedirect.com/science/article/pii/S0378426614000284

This report examines the relationship between the performance of microfinance institutions (MFIs) and whether women occupy high management positions, including CEO, chair or director, in those MFIs. Continue reading

Share

MICROCAPITAL BRIEF: Absolute Portfolio Management’s Vision Microfinance Funds Loan $14m to Microfinance Institutions (MFIs) in Armenia, China, India, Peru, Tajikistan

Absolute Portfolio Management (APM), an arm of Austria-based asset group C-Quadrat, recently informed MicroCapital that it has distributed credits in several currencies that total approximately the equivalent of USD 13.5 million to unspecified microfinance institutions (MFIs) in Armenia, China, India, Peru and Tajikistan through its Dual Return Fund-Vision Microfinance and Dual Return Fund-Vision Microfinance Local Currency. Continue reading

Share

MICROCAPITAL BRIEF: Government-Backed Dutch Good Growth Fund Launches with $950m, Aims to Support Small, Medium-sized Enterprises (SMEs) in the Netherlands, Developing Nations

The Dutch Good Growth Fund (DGGF), a Netherlands-based loan fund that is funded with EUR 700 million (USD 947 million) from the Dutch Ministry of Foreign Affairs, has opened for business as of July 2014. Continue reading

Share

MICROCAPITAL BRIEF: Otoritas Jasa Keuangan (OJK) to Lead Supervision of Microfinance Institutions (MFIs) in Indonesia

Otoritas Jasa Keuangan (OJK), the Indonesian government agency that regulates the country’s financial sector, reportedly has signed a cooperation agreement with the Ministry of Home Affairs, the Indonesian government agency in charge of domestic issues, and the Ministry of Cooperative and Small and Medium Enterprises, an Indonesian regulator of smaller businesses, in an effort to improve the regulation and supervision of microfinance institutions (MFIs) in Indonesia [1][2]. Continue reading

Share

MICROFINANCE PUBLICATION ROUND-UP: Microfinance “Banana Skins” Risk Assessment; Effects of Microloans from Compartamos in Mexico; Youth Financial Inclusion Video

“Microfinance Banana Skins 2014: Facing Reality;” published by Centre for the Study of Financial Innovation; July 2014; 84 pages; available athttp://csfi.org/files/Microfinance_Banana_Skins_2014_-_WEB.pdf

This report, which is based on data collected by surveying 306 people associated with the microfinance industry, examines 19 risks faced by microfinance institutions (MFIs) across the globe. Continue reading

Share

MICROCAPITAL BRIEF: World Bank Group (WBG) Loans $500m to Government of Indonesia for Financial Sector Reform, Including to Boost Financial Inclusion

The World Bank Group (WBG), a US-based international financial institution, has recently approved a USD 500 million “Financial Sector Reform and Modernization Development Policy Loan”[1] (FSRM DPL) for the government of Indonesia. Continue reading

Share

MICROCAPITAL BRIEF: National Housing Bank (NHB) of India Approves Muthoot Finance to Offer Home Mortgages

The National Housing Bank (NHB), the Indian governmental agency that oversees housing finance, reportedly has granted Muthoot Finance, an Indian non-banking finance company (NBFC) that lends using gold items as collateral, approval to begin providing housing finance services. Continue reading

Share

MICROCAPITAL BRIEF: Suryoday Micro Finance of India Raises $4.5m in Equity from International Finance Corporation (IFC), Aavishkaar Goodwell, Lok Capital

Suryoday Micro Finance Private Limited, an Indian microfinance institution (MFI), recently received an equity infusion totalling INR 270 million (USD 4.5 million) from three investors: INR 150 million (USD 2.5 million) from the International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and INR 62 million (USD 1 million) each from Aavishkaar Goodwell, a for-profit Indian-Dutch joint venture promoting economic development, and Lok Capital, a Mauritius-based venture fund focused on microfinance and other social businesses in India [1] [2]. Continue reading

Share

MICROCAPITAL BRIEF: IFMR Capital of India Launches Collateral Bond Obligation (CBO) Backed by $16m in Non-convertible Debentures (NCDs) Issued by Microfinance Institutions (MFIs)

IFMR Capital, a Chennai-based financial institution that facilitates funding for organizations that serve low-income individuals in India, has launched a collateralized bond obligation (CBO), which it deems the country’s first. Continue reading

Share

MICROCAPITAL BRIEF: Department for International Development (DFID) to Donate $2m to 12 Pakistani Financial Institutions to Support Innovation in Rural Agricultural Finance

The Department for International Development (DFID), a development agency of the British government, reportedly has pledged to donate a total of PKR 240 million (USD 2.4 million) to 12 Pakistani financial institutions to support the implementation of proposed innovations in rural and agricultural financing. Continue reading

Share

MICROCAPITAL BRIEF: India-based Ujjivan Financial Services Disburses Loans Totaling $166m Via Direct Deposit to Bank Accounts

Ujjivan Financial Services, a Bangalore-based microfinance institution, has disbursed local currency loans totaling the equivalent of USD 166 million, approximately 50 percent of its total loan disbursements this year, directly to customer’s bank accounts. Continue reading

Share

MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $3m to Indonesia’s Mitra Bisnis Keluarga Ventura (MBK), $1m to Azerbaijan’s Finance for Development (FinDev)

The Luxembourg-based Grameen Credit Agricole Microfinance Foundation (GCAMF), which provides financial services to “social businesses,” recently informed MicroCapital that it has provided a three-year local-currency loan equivalent in value to EUR 2.1 million (USD 2.9 million) to Mitra Bisnis Keluarga Ventura (MBK), a microfinance institution (MFI) located in Indonesia. Continue reading

Share

MICROCAPITAL BRIEF: Biniog Sathi Banking Model Employs Islamic Concept of Zakat in Effort to Minimize Credit Default

Mabroor Mahmood, who operates the online “Ideas for Development” think tank, recently began selling his Biniog Sathi banking model, which incorporates Zakat, a Muslim practice of giving charity, to protect against credit default [1]. Continue reading

Share

MICROCAPITAL BRIEF: “Harry Potter” Cinema Actress Emma Watson to Serve as Goodwill Ambassador for United Nations (UN) Women

United Nations (UN) Women, the UN organization “dedicated to gender equality and the empowerment of women,” has announced Emma Watson, a British actress, will serve as Goodwill Ambassador for the organization. Continue reading

Share

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Increases Syndicated Loan to National Development Bank of Sri Lanka from $125m to $200m for On-Lending to Micro-, Small, Medium-Sized Enterprises (MSMEs)

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has increased the size of the syndicated loan that it provided in March 2014 to the National Development Bank (NDB), a financial services company owned by the government of Sri Lanka, from USD 125 million to USD 200 million. Continue reading

Share

MICROFINANCE PAPER WRAP-UP: “Invest. Catalyze. Mainstream. The Indian Impact Investing Story;” by Nisha Dutt, Usha Ganesh, Prashant Chandrasekaran, Payal Agarwal, Samved Patil, Ankit Gupta; Published by Intellecap

“Invest. Catalyze. Mainstream. The Indian Impact Investing Story;” by Nisha Dutt, Usha Ganesh, Prashant Chandrasekaran, Payal Agarwal, Samved Patil and Ankit Gupta; published by Intellecap, April 2014, 70 pages, available at http://intellecap.com/publications/invest-catalyze-mainstream-india-impact-investing-story

India is a major hub for impact investing – an investment approach that pursues financial returns while seeking social and environmental improvements in low-income communities. Continue reading

Share

MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Allows Non-banking Finance Companies (NBFCs) to Work as Agents for Banks

The Reserve Bank of India (RBI), a government agency charged with overseeing the Indian financial sector, has revised its regulations to permit non-banking finance companies (NBFCs) that do not accept deposits to act as business correspondents for Indian banks, providing limited financial services to clients in unbanked areas. Continue reading

Share