Category: South Asia, East Asia and Pacific

MICROCAPITAL BRIEF: Microlenders Affiliated with India’s Microfinance Institutions Network Boost Loan Disbursals by 22%, Gross Loan Portfolio by 9.2% from Previous Quarter

According to the Microfinance Institutions Network (MFIN), an association of Indian microfinance institutions (MFIs), 41 of its 47 member MFIs disbursed loans totaling INR 61.9 billion (USD 1.1 billion) in the October-December quarter of 2012, an increase of approximately 22 percent from the INR 50.9 billion (USD 926 million) during the previous quarter. Continue reading

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MICROCAPITAL BRIEF: Social Security System (SSS) of the Philippines Extends Services through Partnership with the Center of Agricultural and Rural Development (CARD) Bank

The Center for Agricultural and Rural Development (CARD) Bank, a non-governmental organization that provides lending and voluntary savings for poor and landless women in the Philippines, reportedly has partnered with the Social Security System (SSS) of the Philippines, a government-run social insurance program that provides retirement and health benefits, in an effort to extend the program’s outreach to workers in the Philippines’ informal sector. Continue reading

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MICROFINANCE PAPER WRAP-UP: “Microinsurance Product Development for Microinsurance Providers;” by Michael J. McCord; published by Microfinance Centre, Microinsurance Centre, International Fund for Agricultural Development

By Michael J. McCord; published by the Microfinance Centre for Central and Eastern Europe and the New Independent States, the Microinsurance Centre and the International Fund for Agricultural Development (IFAD); 2012; 124 pages; available at: http://www.ifad.org/ruralfinance/wrmf/manual.pdf

In this manual, Mr. McCord proposes a “systematic new-product development process” for the microinsurance market. Continue reading

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MICROCAPITAL BRIEF: Microloans up 38%, Microdeposits Up 144% in Cambodia

According to data attributed to the Cambodia Microfinance Association (CMA), a nongovernment organization established in 2004 to promote Cambodia’s microfinance sector, the value of microloans disbursed by its 32 members increased approximately 38 percent to USD 890 million and total deposits increased 144 percent to USD 280 million from 2011 to 2012. Continue reading

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MICROCAPITAL BRIEF: Governor Yuba Raj Khatiwada of Nepal Rastra Bank Cites Multiple Lending and Low Outreach to Poor People by Microfinance Sector

Governor Yuba Raj Khatiwada of the Nepal Rastra Bank (NRB), the central banking authority of the country, reportedly expressed concern that “the growing tendency of lending money to people who have already taken a loan from other financial institutions might expose the microfinance sector to risk.” Continue reading

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MICROCAPITAL BRIEF: High Court of Indian State of Andhra Pradesh Upholds Microfinance State Law, Rejecting Microlenders’ Petitions

The High Court of the Indian state of Andhra Pradesh reportedly ruled to uphold the Andhra Pradesh Microfinance Institutions (Regulation of Money Lending) Act, 2010, despite petitions brought by Indian microlender SKS Microfinance and other microfinance institutions (MFIs) seeking to have the law repealed. Continue reading

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MICROCAPITAL BRIEF: 31,000 Apply to Malaysian Government’s Interest-free Microcredit Program in First Phase

Malaysia’s Domestic Trade, Cooperatives and Consumerism Ministry (MDTCC) reportedly has announced that for the month of January 2013 approximately 31,000 hawkers and small traders had applied to borrow MYR 9.71 million (USD 3.14 million) through the government’s new microcredit scheme. Continue reading

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MICROFINANCE PAPER WRAP-UP: “Microfinance in Myanmar Sector Assessment”; by Eric Duflos, Paul Luchtenburg, Li Ren and Li Yan Chen; published by CGAP (Consultative Group to Assist the Poor), International Finance Corporation

By Eric Duflos, Paul Luchtenburg, Li Ren and Li Yan Chen, published by CGAP (Consultative Group to Assist the Poor) and International Finance Corporation, January 2013, 43 pages, available at:  http://www1.ifc.org/wps/wcm/connect/d87bf8804e5aba9bad7dadfce4951bf6/Microfinance+in+Myanmar+Sector+Assessment-Final.pdf?MOD=AJPERES

This joint CGAP (Consultative Group to Assist the Poor) and International Finance Corporation (IFC) report reviews the current state of Myanmar’s microfinance sector and the challenges involved with its future development. Continue reading

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MICROCAPITAL BRIEF: Microfinance institutions (MFIs) in India’s Andhra Pradesh Face Difficulties Even After Loan Restructuring, “Survival of MFIs” Said to Hang on Court Decision Regarding State Law

Microfinance institutions (MFIs) in the Indian state of Andhra Pradesh reportedly are continuing to have difficulty repaying wholesale bank loans even after the restructuring of some of those loans after the downturn in microfinance that began in the region in 2010. Continue reading

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MICROCAPITAL BRIEF: Indonesia’s Excelcomindo Axiata Launches International Remittance Service

Excelcomindo (XL) Axiata, an Indonesian telecommunications subsidiary of Malaysia-based Axiata Group, reportedly has launched its “XL Tunai International Remittance” service, allowing customers to receive money transfers from 110 countries via text messages, a method known as short messages service (SMS). Continue reading

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MICROCAPITAL BRIEF: State Bank of Pakistan Issues License for U Microfinance Bank to Operate Nationwide

The State Bank of Pakistan (SBP), the nation’s central banking authority, reportedly has issued a national-level microfinance banking license to U Microfinance Bank Limited, a Pakistani microfinance institution (MFI) that was formerly known as Rozgar Microfinance Bank. Continue reading

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MICROCAPITAL BRIEF: International Finance Corporation (IFC), Yes Bank to Create Fund for Small Businesses in India

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has partnered with Yes Bank, a commercial bank headquartered in Mumbai, to establish a fund to support small businesses in northeast India. Continue reading

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