Category: Trends/Challenges

MICROCAPITAL BRIEF: BRAC Development Institute Releases “Bangladesh Microfinance Review,” Indicates Need for Product Diversity

The BRAC Development Institute (BDI) set up by the Bangladesh Rehabilitation Assistance Committee (BRAC), a Bangladesh-based development organization, recently released “Bangladesh Microfinance Review, August 2011” and concluded that “while the sector has achieved operational efficiency, it needs to diversify its products in order to serve unmet demand for credit.” Continue reading

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MICROCAPITAL BRIEF: Nigeria’s National Association of Microfinance Banks (NAMB) Establishes Trust Fund to Provide Funds to Member Microfinance Banks (MFBs)

According to a recent story in the Nigeria-based newspaper This DayLive, the Lagos chapter of the National Association of Microfinance Banks (NAMB), a trade group of microfinance banks (MFBs) in Nigeria, has established the “NAMBLAG Trust Fund.” Continue reading

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MICROCAPITAL BRIEF: Chuck Waterfield of MFTransparency Explores Ideas to Make Microfinance Prices More Transparent

Mr Chuck Waterfield, founder and CEO of MFTransparency (MFT), a US-based nongovernmental organization (NGO) that collects and publishes information on microcredit products and pricing, recently contributed to the CGAP (Consultative Group to Assist the Poor) blog to suggest ideas for regulations that could encourage more transparent pricing in microfinance [1]. Continue reading

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MICROCAPITAL BRIEF: Microcredit in Colombia Continues to Grow at a Steady Rate, Driven By Micro- and Small-Sized Enterprises (MSEs)

According to a report published by Visión Económica, a Colombian economic research institute, the value of microcredit disbursements in the country has risen from COP 2.29 billion (USD 1.12 million) in 2007 to COP 3.5 billion (USD 1.74 million) in 2011, at an annual growth rate of 15 percent. From 2007 to 2010, the number of borrowers grew from 1.68 million to 2.47 million, and it is expected that another 1 million people will become microcredit users by 2013. Continue reading

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MICROCAPITAL BRIEF: Central Bank of Brazil Publishes “Inclusão Financeira” Calling for Increased Financial Inclusion, Urging Microfinance Institutions (MFIs) to Boost Transparency, Product Innovation, Financial Education

In a recent report, “Inclusão Financeira,” the Central Bank of Brazil presents the bank’s financial inclusion initiative, which aims for improvements in governance, transparency, regulation, credit, technology, distribution channels and product diversity [1]. Continue reading

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MICROCAPITAL BRIEF: Survey by National Partnership of Microfinance Market Participants, Russian Microfinance Center Indicate Russian Microfinance Market Grew 13% During First Quarter of 2011

A joint survey conducted by two Russian associations of microfinance stakeholders, the National Partnership of Microfinance Market Participants and the Russian Microfinance Center indicates that non-banking microfinance institutions (MFIs) posted improvements in nearly all primary financial indicators during the first quarter of 2011. Continue reading

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MICROCAPITAL BRIEF: Microinsurance Network Report, “Commercial Insurers in Microinsurance,” Examines Trends, Challenges, Long-term Perspectives of Commercial Companies

Microinsurance Network, a member-based organization that works to advance insurance in poor countries, recently released its report, “Commercial Insurers in Microinsurance,” that examines the incentives and long-term prospects for the involvement of commercial companies in microinsurance [1]. Continue reading

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MICROCAPITAL BRIEF: World Council of Credit Unions’ (WOCCU’) “2010 Statistical Report” Announces 12% Increase in Credit Union Deposit Holdings, 10% Increase in Reserves

The World Council of Credit Unions (WOCCU), a US-based membership organization representing 41 national-level credit union member trade groups, recently released its “2010 Statistical Report,” which is based on data from credit unions from 100 countries and reports a 12-percent increase in aggregate credit union savings from USD 1.1 trillion in 2009 to USD 1.23 trillion in 2010.

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MICROCAPITAL BRIEF: In Forbes, Nicole Skibola Explores Opportunities, Challenges for Insurance Industry in offering Microinsurance

Nicole Skibola, of Australian-US firm Apricot Consulting, recently published an article on the website of US-based Forbes magazine, discussing how some insurance companies are “reconfiguring the value chain to create shared social and economic values” through offering microinsurance to underserved consumers [1]. Continue reading

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MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Reports 13% Quarterly Decline in Microfinance Bank Deposits, Slow Recovery After 2010 Floods

Pakistan’s central banking authority, the State Bank of Pakistan (SBP), has reportedly stated that the value of deposits at microfinance banks (MFBs) in the country decreased from PKR 10.3 billion (USD 120 million) as of December 31, 2010, to PKR 8.9 billion (USD 104 million) as of March 31, 2011. Continue reading

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MICROCAPITAL BRIEF: MFTransparency Announces First Microfinance Data Submissions for Transparent Pricing Initiative in the Philippines

MFTransparency, a US-based nongovernmental organization (NGO) that collects and publishes information on microcredit products and pricing, recently received the first data submissions from Filipino microfinance institutions (MFIs) that are participating in its “Transparent Pricing Initiative.” Continue reading

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MICROCAPITAL BRIEF: Microcredit Summit Campaign: 45m Indians Move Out of Poverty, Earning Over $1.25 Per Day Because of Microfinance

The Microcredit Summit Campaign, a program of the US-based advocacy group RESULTS Educational Fund, recently released a report indicating that nearly 9 million Indian households involved in microfinance began earning more than USD 1.25 per day between 1990 and 2010. Continue reading

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MICROFINANCE PAPER WRAP-UP: Selective Knowledge: Reporting Biases in Microfinance Data, by Jonathan Bauchet and Jonathan Morduch, Published by Financial Access Initiative (FAI) at New York University’s Robert F Wagner Graduate School of Public Service and Hunter College

By Jonathan Bauchet and Jonathan Morduch, published by the Financial Access Initiative (FAI) at New York University’s Robert F Wagner Graduate School of Public Service and Hunter College, June 2009, 39 pages, available at:
http://www.nyu.edu/projects/morduch/documents/articles/2008-06-Selective-knowledge.pdf Continue reading

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MICROCAPITAL BRIEF: Electronic “Global Disability Rights Library” Offered to Encourage Inclusion of People with Disabilities in Development Initiatives Including Microfinance

The Global Disability Rights Library (GDRL) project, an initiative of the US International Council on Disabilities and the University of Iowa’s WiderNet Project, with funding support from the US Agency for International Development (USAID), has announced a call for applications to receive a free digital GDRL [1]. Continue reading

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MICROCAPITAL BRIEF: Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States’ “Financial Education Program” Reaches 100,000 Low-Income Households in Eastern Europe, Central Asia

The Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States, a regional network of 110 microfinance institutions (MFIs), announced its Financial Education Program (FEP) has reached 100,000 low-income households. Continue reading

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MICROCAPITAL BRIEF: Smart Campaign Revises “Client Protection Principles” for Microfinance Institutions (MFIs)

The Smart Campaign, a global initiative to improve client protection in the microfinance industry, recently announced revisions to its “Client Protection Principles,” which are intended to help microfinance institutions (MFIs) improve their business through good ethics [1]. Continue reading

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