Category: Transparency

MICROCAPITAL BRIEF: Multilateral Investment Fund Places $5m in Equity in Fund for Mexican SMEs

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

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MICROCAPITAL BRIEF: Nigerian Stock Exchange Lists Fortis Microfinance Bank with Market Capitalization of $50m

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

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MICROCAPITAL BRIEF: Amid Concerns of a Bubble In Kyrgyzstan, 94 Microfinance Institutions Are Shut Down, 31% of Borrowers Owe Multiple Loans

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

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SPECIAL FEATURE: Absolute Portfolio Management Interviews CEO Nurhayrah Sadava of Microfinance Institution Thaneakea Phum in Cambodia (TPC) Regarding Client Protection Principles

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

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MICROFINANCE PAPER WRAP-UP: “Perceptions of (Micro)Insurance in Southern Ghana: The Role of Information and Peer Effects;” by Lena Giesbert and Susan Steiner, published by DIW Berlin

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

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Written by Comments Off on MICROFINANCE PAPER WRAP-UP: “Perceptions of (Micro)Insurance in Southern Ghana: The Role of Information and Peer Effects;” by Lena Giesbert and Susan Steiner, published by DIW Berlin Posted in Africa, Microinsurance, Transparency

MICROCAPITAL BRIEF: VisionFund International Releases Three-Year Plan to Improve Lives of 3.5m Children

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

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MICROFINANCE PUBLICATION ROUND-UP: Financial Service Needs in Mexico; Evaluation of an Insurance Education Radio Campaign in Kenya; Self-Assessment of Governance

“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

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MICROCAPITAL BRIEF: India’s Insurance Regulatory and Development Authority (IRDA) Finds “Massive Problems” with Practices of SKS Microfinance

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

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MICROCAPITAL BRIEF: Microcredit Regulatory Authority (MRA) of Bangladesh Orders Microfinance Institutions to Obtain Permission to Offer Services Other Than Microcredit

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

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MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN): MSME Development Fund Not for Bailing out Microfinance Banks

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

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MICROCAPITAL BRIEF: Union Cabinet of India to Present Microfinance Bill to Parliament

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

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MICROCAPITAL BRIEF: Microfinance Accounts for 3% of Nigeria’s GDP, says National Association of Microfinance Banks (NAMB)

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

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MICROCAPITAL BRIEF: US Secretary of State Hillary Clinton Expresses Concern over Investigation of Bangladeshi Microfinance Institution Grameen Bank

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

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MICROCAPITAL BRIEF: Luxembourg Fund Labeling Agency (LuxFLAG) Certifies Fonds Européen de Financement Solidaire (FEFISOL) with “Microfinance Label”

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

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Written by Comments Off on MICROCAPITAL BRIEF: Luxembourg Fund Labeling Agency (LuxFLAG) Certifies Fonds Européen de Financement Solidaire (FEFISOL) with “Microfinance Label” Posted in Africa, Investment Funds, Transparency

MICROCAPITAL BRIEF: Luxembourg Fund Labeling Agency (LuxFLAG) Certifies Access Africa Fund with “Microfinance Label”

Access Africa Fund, a for-profit limited liability company, has become the first US-based microfinance investment vehicle (MIV) to obtain the “Microfinance Label” from the Luxembourg Fund Labeling Agency (LuxFLAG), an MIV certification organization. Continue reading

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MICROCAPITAL BRIEF: Bangladesh Government to Investigate NGOs, Microcredit Entities for Money Laundering

The Bangladeshi government reportedly intends to investigate the financial transactions of nongovernment organizations (NGOs) and microcredit entities operating in the country “to unearth any kind of money laundering.” Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Disclosure Regimes for Responsible Financial Inclusion; The Thailand Village and Urban Revolving Fund; “Microsavings Works Much Better”

Designing Disclosure Regimes for Responsible Financial Inclusion,” by Jennifer Chien; published by CGAP (Consultative Group to Assist the Poor); March 2012; 23 pages; available at:
http://www.cgap.org/gm/document-1.9.57109/FN_78.pdf Continue reading

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MICROCAPITAL BRIEF: RBI Wants Microfinance Institution Deposit-Taking Cut From Micro Financial Sector Bill

Deputy Governor Anand Sinha of the Reserve Bank of India (RBI), India’s central banking authority, reportedly announced in a budget speech that RBI does not support allowing microfinance institutions (MFIs) to take deposits from clients. Continue reading

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