This morning, following a day of member meetings, the European Microfinance Platform (e-MFP) opened its eighth European Microfinance Week, which is themed “Combining Strength, Delivering Results” and aims to address the loss of confidence in many circles that microfinance benefits poor people. In the opening plenary session, Sanjay Sinha, managing director of India’s Micro Credit Rating International Limited (M-CRIL), said that, “Moderate growth is good for inclusion. Rampant growth, which is what we had for a long time in India, is a recipe for disaster…. In order to reduce growth, we need to temper the egos of the promoters of microfinance institutions (MFIs). And we all know we need to dampen the expectations of investors – I’m talking mainly of the Indian commercial banking sector.” Continue reading
Do you know that MicroCapital publishes a monthly newspaper on microfinance? The September MicroCapital Monitor has a dozen pages of news, events and research summaries as well as a report on microfinance networks from development finance expert Barbara Magnoni of EA Consultants. There is no fee to receive the free, abbreviated edition of the Monitor, and we would love to send you a complimentary sample of the paid edition. Just drop us an email or call us at +1 617 648 0043.
The World Bank Group, a US-based institution whose aim is to reduce poverty, recently released a report titled “General Guidelines for the Development of Government Payment Programs” that aims to assist governments and other stakeholders in developing efficient electronic government-payment systems. Continue reading
MFTransparency, a US-based nongovernmental organization (NGO), recently partnered with Planet Rating, a microfinance rating agency that is a member of the France-based PlaNet Finance Group, and Microfinance Institutions Network (MFIN), a trade association of microlenders in India. Continue reading
The Multilateral Investment Fund (MIF), an autonomous fund that was founded in 1993 by the US-based Inter-American Development Bank (IDB), has made a USD 5 million equity investment in Mexico Development Fund I (MDF-I), a venture capital fund focused on small and medium-sized Mexican businesses providing education, financial or retail services. MDF-I is managed by PC Capital Partners, a financial services firm based in Mexico. Continue reading
Fortis Microfinance Bank, headquartered in Abuja, Nigeria, has joined the Nigerian Stock Exchange, increasing the exchange’s market capitalization by NGN 8.15 billion (USD 50.8 million). Continue reading
According to a quote attributed to Fatima Eshimbekova of the World Bank Group’s International Finance Corporation (IFC), MFIs in Kyrgyzstan have doubled their aggregate loan portfolio since 2010. Continue reading
The following text is re-posted with permission from Absolute Portfolio Management.
The microfinance industry has taken big steps forward in the last couple of years to better serve their clients. The Client Protection Principles for microfinance and the accompanying Smart Campaign have been introduced to protect clients, businesses, and the industry as a whole.
Austrian based asset manager Absolute Portfolio Management (APM) offers two “Dual Return – Vision Microfinance” funds, endorses the Smart Campaign and has incorporated the client protection principles into their investment criteria and due diligence. However, APM wanted to double-check how the Principles are employed at the microfinance institutions that the Vision Microfinance funds invest in. Continue reading
By Lena Giesbert and Susan Steiner, published by Deutsches Institut fur Wirtschaftsforschung (DIW Berlin), 2012, 33 pages, available at: http://www.diw.de/documents/publikationen/73/diw_01.c.394251.de/dp1194.pdf Continue reading
VisionFund International, a UK-based nonprofit organization that manages the microfinance institutions (MFIs) of the US-based nonprofit relief organization World Vision International, has announced a three-year strategy to increase the number of lives it impacts from 2.2 million annually to 3.5 million annually by 2015. Continue reading
“A Structured Approach to Understanding the Financial Service Needs of the Poor in Mexico;” by Xavier Faz and Paul Breloff; published by CGAP (Consultative Group to Assist the Poor); May 2012; 4 pages; available at: http://www.cgap.org/gm/document-1.9.57615/Brief_MexicoSegmentation.pdf Continue reading
In conducting a set of field inspections, the Insurance Regulatory and Development Authority (IRDA), an Indian supervisory body, reportedly has detected “massive problems” in the handling of insurance by SKS Microfinance, a microfinance institution (MFI) in India. Continue reading
The Microcredit Regulatory Authority (MRA), the supervisor of NGO microfinance institutions (MFIs) in Bangladesh, reportedly has advised MFIs to obtain permission by June 30 for sertvices offered other than microcredit. Continue reading
The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, reportedly has asserted that its Micro-, Small and Medium Enterprises Development fund, which is due to be launched in June, is designed for capacity building and not to bail out distressed microfinance banks (MFBs). Continue reading
The Union Cabinet of India, a decision-making body of the executive branch of the government of India, reportedly has approved a bill proposing that all microfinance institutions (MFIs) register with the Reserve Bank of India (RBI) and maintain a minimum of funds equal to INR 5 lakh (USD 9,270). Continue reading
The National Association of Microfinance Banks (NAMB), a trade group of microfinance banks in Nigeria, reportedly has announced that microfinance banks accounted for 3 percent of Nigeria’s gross domestic product (GDP) in 2011, which was USD 413 billion. Continue reading
US Secretary of State Hillary Clinton has expressed her support for Nobel Peace Laureate Dr Muhammad Yunus and urged the Bangladeshi government “not to undermine the independence of the Grameen Bank.” Continue reading
Fonds Européen de Financement Solidaire (FEFISOL), a for-profit investment fund registered in Luxembourg, has obtained the “Microfinance Label” from the Luxembourg Fund Labeling Agency (LuxFLAG), a microfinance investment vehicle (MIV) certification organization. Continue reading