Category: Trends/Challenges

MICROFINANCE PAPER WRAP-UP: Microfinance and the Role of Policies and Procedures in Saturated Markets and During Periods of Fast Growth, by Adrian Gonzalez and Emmanuelle Javoy, published by, Microfinance Information Exchange, Planet Rating

Published by the Microfinance Information Exchange & Planet Rating, MicroBanking Bulletin, September 2011, 10 pages, available at: http://www.themix.org/sites/default/files/MBB-%20microfinance%20and%20the%20role%20of%20policies%20and%20procedures%20in%20saturated%20markets_1.pdf Continue reading

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MICROCAPITAL BRIEF: Center for Financial and Credit Counseling of Bosnia Offers Debt Mediation, Financial Education to Microfinance Clients

The Center for Financial and Credit Counseling (CFKS), a nonprofit established in 2010 in the Bosnian city of Tuzla, has been set up to counter the negative impact of over-indebtedness through financial education, counseling, mediation and debt resolution. Continue reading

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MICROCAPITAL BRIEF: “‘And Who Listens to the Poor?’ Shocks, Stresses and Safety Nets in India and Pakistan” by Karishma Huda, Sandeep Kaur, Nicolina Lamhauge Explores Experiences of Female Participants in Microfinance Program “2009 Trickle Up Ultra Poor Pilot Program”

Trickle Up, US-based nonprofit that aims to alleviate poverty in poor countries, recently released a study “And Who Listens to the Poor?’ Shocks, Stresses and Safety Nets in India and Pakistan” by Karishma Huda, Sandeep Kaur and Nicolina Lamhauge, documenting the cases of 20 women participants in its 2009 Trickle Up Ultra Poor Pilot Program [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: Supreme Court of India Sends SKS Back to Andhra Pradesh High Court to Challenge Microfinance (Regulation of Moneylending) Act of 2010

SKS Microfinance, an Indian microfinance institution (MFI), recently was directed by the Supreme Court of India, the country’s apex court, to plead its case against the enforcement of the Regulation of Microlending Act of the Indian state of Andhra Pradesh (AP), in front of the AP High Court, the state’s apex court. Continue reading

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MICROCAPITAL BRIEF: Government of Botswana to Stop Facilitating Repayment of Microfinance Loans by Civil Servants

The government of Botswana has announced that it will cease acting as an intermediary between microfinance institutions (MFIs) and civil servants for the collection of microloans through the provision of “deduction-at-source” from public servants’ wages [1]. Continue reading

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MICROCAPITAL BRIEF: On Financial Access Initiative Website, Daniel Rozas Highlights Roles of Credit Bureaux, Smart Campaign, Local Regulations to Address Multiple Borrowing in Microfinance

In an article recently published on the website of the US-based Financial Access Initiative, Brussels-based microfinance consultant Daniel Rozas examines multiple borrowing and proposes several ways address the issue. Continue reading

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MICROCAPITAL BRIEF: In Kenya, Chase Bank Creates Rafiki Deposit-Taking Microfinance Institution

Chase Bank, a US-based commercial bank, is reportedly looking beyond the business model of “corporate giants” in Kenya by creating a deposit-taking microfinance institution (DTM) subsidiary, Rafiki Deposit Taking Microfinance Kenya Limited, to attract clients who have “outgrown” traditional microfinance institutions (MFIs) [1]. 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: Focus Note Distributed at Fifth African Microcredit Conference Lauds Morocco as a “Microcredit Champion,” Contrary to Past Reports Expressing Concern

At the recently concluded Fifth African Microcredit Conference, which was held in Ethiopia, a focus note reportedly commended the Moroccan microcredit sector, remarking that from 2003 to 2007 microfinance institutions’ (MFIs) loan portfolio “multiplied 11 times and client outreach by four” in the country [1]. Continue reading

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MICROCAPITAL BRIEF: Central Bank of Nigeria Approves New Capital Base Requirements for Microfinance Banks (MFBs), MFBs Await Capital Verification Results

The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, has approved the new capital base requirements for microfinance banks (MFBs) as per the expectations reported in the MicroCapital story dated June 28. 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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MICROCAPITAL BRIEF: Dr Muhammad Yunus Suggests Microfinance “Misinterpreted” as Charity in the Arab World due to Outdated Regulation

Dr Muhammad Yunus, the founder of Bangladeshi microfinance institution (MFI) Grameen Bank, recently argued that the Arab world has “misinterpreted the system’s true principles” by operating it as a “charity affair” [1]. Continue reading

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MICROCAPITAL BRIEF: In Center for Financial Inclusion (CFI) Report, “Opportunities and Obstacles to Financial Inclusion,” Microfinance Stakeholders Cite Financial Education as Top Need

The Center for Financial Inclusion (CFI), an affiliate of US-based nonprofit ACCION International, recently released a report titled “Opportunities and Obstacles to Financial Inclusion”, that identifies client financial education as the top opportunity in the microfinance sphere [1]. Continue reading

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MICROCAPITAL BRIEF: Swiss Re Commits to Offering Cholera Insurance in Haiti and Crop Insurance in Senegal, Clinton Global Citizen Awards Announced at CGI Annual Meeting

Swiss Re, a global reinsurer, announced during the recent 2011 Clinton Global Initiative (CGI) Annual Meeting its commitment to provide insurance against cholera for Haitian women entrepreneurs and an “insurance for work” program intended to help farmers in Senegal maintain food and income security amidst climate change. Continue reading

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MICROCAPITAL BRIEF: Skincare Company Dermalogica Establishes Financial Independence Through Entrepreneurship (FITE) Project to Encourage Customers to Lend to Entrepreneurial Women via Microfinance Intermediary Kiva

Financial Independence Through Entrepreneurship (FITE), an online lending platform designed by US-based microfinance intermediary Kiva, has been established by US-based skincare brand Dermalogica to raise money for on-lending to women worldwide to invest in their businesses. Continue reading

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MICROCAPITAL BRIEF: Due Diligence Critical as Indian Banks Select Business Correspondents to Downscale to Microfinance, Opines Ramesh S Arunachalam

Indian rural finance practitioner Mr Ramesh S Arunachalam recently addressed the need for due diligence in the business correspondent (BC) model that the Reserve Bank of India (RBI), India’s central banking authority, adopted in 2010 to increase financial access for low-income people [1]. Continue reading

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