Category: Transparency

MICROCAPITAL BRIEF: Rating Initiative to Stop Subsidizing Microfinance Institution Social Ratings, Will Shut Down Over Two Years

The Rating Initiative (RI), a Luxembourg-based program that supports the use of ratings that include financial and social criteria, is transitioning into a two-year exit phase that includes terminating its subsidies for social ratings of microfinance institutions (MFIs). Continue reading

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MICROCAPITAL BRIEF: MicroRate, LuxFlag Launch Luminis Looking to Increase Transparency of Microfinance Funds

MicroRate, a US-based microfinance rating agency, with the financial support of the Luxembourg government and the nonprofit Luxembourg Fund Labeling Agency (LuxFLAG), has launched the “beta” version of Luminis, a web-based platform focused on increasing the transparency of microfinance investment vehicles (MIVs). Continue reading

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MICROCAPITAL BRIEF: 48 Tanzanian Microfinance Institutions Adopt Code of Conduct Covering Transparency, Client Protection

The Tanzania Association of Microfinance Institutions (TAMFI) has announced that 48 of its member microfinance institutions (MFIs) have adopted a code of conduct. Winnie Terry, TAMFI Executive Secretary, was quoted as having said, “With this code of conduct, TAMFI members are expected to take a leading role to deliver high quality and responsible financial services to the community. The code is intended to make Microfinance Institutions become more responsive to the clients they serve.” Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Microfinance Product Diversification, Over-indebtedness in Kosovo, Social Inclusion

“Making Microfinance Work: Managing Product Diversification” by Cheryl Frankiewicz, Craig Churchill; published by the International Labour Organization (ILO); December 2011; 612 pages; available for a fee at http://www.ilo.org/global/publications/ilo-bookstore/order-online/books/…  Continue reading

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MICROCAPITAL BRIEF: Smart Campaign Calls for Input on Microfinance Client Protection Certification Program

The Smart Campaign, an initiative to improve accountability regarding client protection in the microfinance industry, has called for public input on its Client Protection Certification Program, which has been under development since June 2010. Continue reading

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MICROCAPITAL BRIEF: Ethiopia’s Wasasa Microfinance, Poverty Eradication and Community Empowerment (PEACE), Metemamen, Harbu, Digaf Microfinance Submit Pricing Data to MFTransparency

MicroFinance Transparency (MFTransparency), an NGO based in the United States that publishes information on microcredit products and pricing, has reported to MicroCapital that Wasasa Microfinance, Poverty Eradication and Community Empowerment (PEACE), Metemamen, Harbu and Digaf Microfinance submitted microloan pricing data to MFTransparency as part of its “Transparent Pricing Initiative in Ethiopia”. Continue reading

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MICROCAPITAL BRIEF: European Commission Publishes “European Code of Good Conduct for Microcredit Provision”

The European Commission (EC), the executive body of the European Union (EU), has recently published the “European Code of Good Conduct for Microcredit Provision” that provides guidelines and standards to microcredit stakeholders in the EU to support the sector in “facing the challenges of accessing long-term finance, maintaining and raising the quality of services and moving towards sustainability” [1] [2]. Continue reading

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MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Reports Microfinance Loan Disbursements Increased 24% in First Half of 2011

The Central Bank of Nigeria (CBN), Nigeria’s banking authority, has released an economic report indicating that microfinance banks (MFBs) have increased their loan distribution volume in the first half of the year by 24 percent to NGN 65.5 billion (USD 411 million) compared to NGN 52.9 billion for the period ending December 2010. Continue reading

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MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Launches Fee-Based “MIX Silver”

The Microfinance Information Exchange (MIX), a US-based nonprofit organization that publishes financial and social performance information from microfinance stakeholders, recently announced the launch of a fee-based service that offers the ability to: create a personalized dashboard to track real-time changes in microfinance markets; build virtual microfinance institution portfolios for analysis; access benchmarking and aggregation tools; and access all interim and annual data for approximately 2,000 MFIs in the MIX database [1]. Continue reading

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MICROCAPITAL BRIEF: Microfinance Investor Developing World Markets (DWM) Aligns Social Scorecard with Impact and Reporting Investment Standards (IRIS); Announces Staff Changes

US-based asset manager and investment bank Developing World Markets (DWM) has recently announced that it has expanded and redesigned its proprietary social scorecard to align it with the Impact and Reporting Investment Standards (IRIS), an initiative of the US-based nonprofit Global Impact Investing Network (GIIN) to create a common framework for defining, tracking and reporting the performance of for-profit investment intended to solve social and environmental problems [1]. Continue reading

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MICROCAPITAL BRIEF: MicroFinanza Rating, MicroRate, Planet Rating Sign Microfinance Rating Agency Code of Conduct, Sanjay Sinha of Micro-Credit Ratings International (M-CRIL) Criticizes Commercial Rating Agencies as “Too Liberal” with Microfinance Institutions

Three providers of institutional, performance and social ratings of microfinance institutions (MFIs), MicroFinanza Rating of Italy, US-based MicroRate and French Planet Rating, recently signed the Microfinance Rating Agency Code of Conduct. Continue reading

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MICROCAPITAL BRIEF: LuxFLAG Grants Microfinance Label to Microfinance Enhancement Facility, Selectum, Etimos Fund, Dual Return Fund Vision Microfinance Local Currency; Renews Label for Six Other Microfinance Investment Vehicles (MIVs)

The Luxembourg Fund Labeling Agency (LuxFLAG), a microfinance institution vehicle (MIV) certification organization, has recently granted the LuxFLAG Microfinance Label, which reassures investors that MIVs actually invest in the sector, to four MIVs for the first time: Microfinance Enhancement Facility SA SICAV-SIF, Selectum SICAV-SIF, Etimos Fund SICAV-SIF and Dual Return Fund SICAV-SIF Vision Microfinance Local Currency. Continue reading

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MICROFINANCE EVENT: MFTransparency, Agence Française de Développement, UN Capital Development Fund, Luxembourg Cooperation, African Microfinance Network, CGAP (Consultative Group to Assist the Poor) to Host African Microfinance Pricing Transparency Leadership Forum, October 5-7, 2011 in Nairobi, Kenya

Event Name: African Microfinance Pricing Transparency Leadership Forum

Event Date: October 5 – October 7, 2011

Event Location: Nairobi, Kenya Continue reading

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MICROCAPITAL BRIEF: 25% of Microfinance Borrowers Use Part of Enterprise Loan Proceeds for Consumption, According to Study by Dean Karlan, Jonathan Zinman

In a recent paper, “List Randomization for Sensitive Behavior: An Application for Measuring Use of Loan Proceeds,” researchers Dean Karlan and Jonathan Zinman put forth data indicating that enterprise microloan borrowers tend to underreport the percentage of the loan, if any,  that they use for non-business purposes such as household expenses [1] [2]. Continue reading

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