Swadhaar Finserve Private Limited (SFPL), an Indian microfinance institution, recently received honors for “Appropriate Collections Practices” from the Smart Campaign, an initiative that focuses on client protection in microfinance. According to Smart Campaign Tool Development Specialist Leah Wardle, “SFPL won our Call for Tools because their policies and procedures for collections are a good example of how microfinance institutions (MFIs) can provide staff with clear expectations for dignified treatment of clients during collections processes. From their general code of conduct for collections to their specifics on ethical loan recovery procedures, SFPL’s policies clearly embody elements of our Client Protection Principles.” [1]. Smart Campaign’s Client Protection Principles focus on non-coercive debt collection practices and other aspects of good governance such as avoiding client over-indebtedness, privacy practices and transparent pricing. Continue Reading »

The People’s Bank of China (PBoC), the nation’s central banking authority, recently published statistics on the performance of the microfinance sector in 2010 including the number of microfinance institutions (MFIs), number of employees and both capital levels and outstanding loan balances by province and municipality. Continue Reading »

By Sachin Sondhi, Sandip Biswas, Gaurav Gupta, Prakash Bharwani; published by Deloitte Touche Tohmatsu India Private Limited; January 2011; 68 pages; available at https://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Deloitte_ASSOCHAM_MVAS_Study.pdf. Continue Reading »

The Microfinance Institutions Network (MFIN), an association of Indian microfinance lenders, recently reported that several small and medium-sized microfinance institutions (MFIs) in India may soon file for bankruptcy as a result of decreasing liquidity. Continue Reading »

Business Standard, an Indian newspaper, has reported that SEED Financial Services, an Indian consulting, planning and implementation agency; Financial Information Network and Operations Limited (FINO), an Indian technology company that seeks to enable financial inclusion; and A Little World, a technology company based in India are seeking private equity funding to scale their business correspondent operations. Business correspondents are individuals or organizations that are permitted to “raise deposits; disburse tiny loans; recover bad loans; sell micro insurance, mutual funds, pension products and other third-party products; and receive and deliver small value remittances” on behalf on banks [2]. Continue Reading »

As part of its Tajikistan Agribusiness Finance and Business Environment Project, the International Finance Corporation (IFC), the private-investment arm of the World Bank Group, will support IMON International, a microfinance institution (MFI) in Tajikistan, in the identification of new clients that may benefit from equipment finance. Continue Reading »

BRAC (formerly Bangladesh Rehabilitation Assistance Committee), a Bangladeshi development organization that was established in 1972, reportedly admitted to pushing loans to borrowers that could not afford them. Continue Reading »

CGAP Microfinance Blog, operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by Mohammed Khaled, a CGAP representative for the Middle East-North Africa Region, that explores the implications for microfinance institutions (MFIs) of the recent wave of demonstrations and resulting leadership changes that have occurred in the Middle East and North Africa. Mr Khaled says that while it “could be too early to analyze the impact of recent events in the Arab world on microfinance, one can conclude some general and common lessons despite differences among countries” [1]. Mr Khaled argues that the following areas are of the utmost importance: emergency plans, strategic partnerships with clients, internal control systems and job creation [1]. Continue Reading »

Sahayata Microfinance, an Indian microfinance institution (MFI), has raised INR 195 million (USD 4.4 million) through the issue of secured, redeemable non-convertible debentures (NCDs) listed on the Bombay Stock Exchange. Continue Reading »

The government of the Indian state of Gujarat has reportedly developed partnerships between self-help groups (SHGs), groups of individuals who are jointly responsible for the repayment of loans, with major industrial businesses, a strategy that it believes will encourage banks to offer loans to the groups at lower interest rates. Continue Reading »

In Bangladesh, 3.7 million people have reportedly signed a petition urging the prime minister of Bangladesh to allow Dr Yunus to continue as the head of Grameen Bank. The event, organized by “The Citizens’ Committee to Protect the Honour of Nobel Laureate Professor Yunus,” was held after the Bangladesh High Court upheld the argument of the government of Bangladesh invalidating the original appointment of Dr Yunus as the managing director of Grameen Bank. Continue Reading »

responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it loaned the equivalent of USD 11 million to microfinance organizations in Georgia, the Kyrgyz Republic, Montenegro and Cambodia. Continue Reading »

The European Union/Africa, the Caribbean and Pacific (ACP) Microfinance Program is offering scholarships for ACP policymakers to participate in the Boulder Microfinance Training Program that will take place in Turin, Italy, from July 18 to August 5, 2011 [1]. The scholarship, worth EUR 3,100 (USD 4,200), will cover tuition for the three weeks of training [1]. The scholarship does not cover accommodation or travel expenses. Candidates must be policymakers such as staff members of central banks or other ministries or supervisory bodies that create or implement policies that impact access to finance within ACP [1]. The Boulder Microfinance Training Programme covers topics such as agricultural and rural finance, analyzing microfinance institution (MFI) performance, branchless banking, business planning, financial risk management, microinsurance and integrating social performance into microfinance management and reporting. Continue Reading »

The Business Standard, an Indian financial newspaper, recently reported that a third of the loans made by Indian banks’ to microfinance institutions (MFIs) are in the process of being structured, due to the MFIs inability to repay following the turmoil in the sector in the state of Andhra Pradesh that began in late 2010. According to a report by the Malegam Committee, a sub-committee of the Reserve Bank of India, as of March 2010 approximately INR 138 billion (USD 3.06 billion) in loans were outstanding to MFIs from the Small Industries Development Bank of India, a government-owned bank providing credit to medium and large-scale MFIs and other banks. The report also stated that banks hold an additional INR 42 billion (USD 932 million) in securitized paper from MFIs. Continue Reading »

Indian social venture firm and subsidiary of nonprofit Opportunity International Australia, Dia Vikas Capital recently invested INR 278 million (USD 6.1 million) in equity and debt and across four microfinance institutions (MFIs) in India. Continue Reading »

The Central Bank of Sri Lanka (CBSL), the country’s central banking authority, recently announced a proposal to create a central authority that would be responsible for the supervision and regulation of the microfinance sector. Continue Reading »

Indian banks that have entered negotiations with microfinance institutions (MFIs) regarding restructuring wholesale microfinance debt have reportedly insisted on personal repayment guarantees from MFI directors [1]. Continue Reading »

Moody’s Investors Services, a US-based rating and research agency that has assigned a ‘Ba3’ rating to Bangladesh’s investment environment, recently touted microfinance institutions (MFIs) in Bangladesh for supporting the country’s socioeconomic development [1]. Continue Reading »