Category: Trends/Challenges

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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MICROCAPITAL BRIEF: Minimum Standards Proposed for Microfinance Institutions’ Management Information Systems in India

An opinion piece by Rural Finance Practitioner Ramesh S Arunachalam that was recently published in Indian personal finance magazine Moneylife highlights the importance of management information systems (MIS) to microfinance institutions (MFIs) and calls for the establishment of minimum MIS standards as a prerequisite for MFI accreditation in India. Continue reading

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MICROFINANCE PAPER WRAP-UP: The Impact of the Global Financial Crisis on Microfinance and Policy Implications, by Gabriel Di Bella, published by the International Monetary Fund

Published by the Western Hemisphere Department of the International Monetary Fund (IMF) as IMF Working Paper No. WP/11/175, 2011, 41 pages, available at: http://www.imf.org/external/pubs/ft/wp/2011/wp11175.pdf Continue reading

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MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Works With African Development Bank, Islamic Development Bank to Plan Expansion to Support Emerging Arab Democracies

In a recent statement, the European Bank for Reconstruction and Development (EBRD), a UK-based development finance institution, announced that it has signed memorandums of understanding (MoUs) with the African Development Bank (AfDB), a multilateral financial institution based in Tunisia, and the Islamic Development Bank, a development finance institution based in Saudi Arabia, to outline how the institutions would cooperate in the Southern and Eastern Mediterranean region as EBRD extends its operation in the region to support the emerging Arab democracies [1]. Continue reading

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MICROCAPITAL BRIEF: Microfinance Institutions Move to Recover “Pre-Crisis” Loans Worth $1.4b in Andhra Pradesh, India

Microfinance institutions (MFIs) in Andhra Pradesh, India, have started talks to recover outstanding loans amounting to INR 7,000 crore (approximately USD 1.4 billion), which they have been unable to collect since the repayment dropoff in the state started in 2010. Continue reading

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MICROCAPITAL BRIEF: Haitian Microfinance Institution Fonkoze Using “Progress out of Poverty Index” to Monitor Economic Progress of Clients in Disaster-Affected Areas

A recent study by the US-based nonprofit Grameen Foundation titled “Rapid Response in the Wake of Disaster: Using the PPI to Design and Support Fonkoze’s Earthquake Recovery Program,” describes how Fonkoze, a Haitian microfinance institution (MFI), is using the Progress out of Poverty Index (PPI), a country-specific poverty assessment tool, in disaster affected areas to monitor and evaluate the progress of its clients [1]. Continue reading

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MICROCAPITAL BRIEF: Consortium on Financial Systems and Poverty (CFSP) Researchers Posit Weak Financial Sectors in Developing Countries Encourage Microenterprises at Expense of Economic Growth

In a recent paper, “Finance and Development: A Tale of Two Sectors,” published in the academic journal American Economic Review, researchers affiliated with the US-based nonprofit Consortium on Financial Systems and Poverty (CFSP), conclude that poor access to financing opportunities in developing countries makes it harder for entrepreneurs to start large-scale businesses like manufacturing [1]. Continue reading

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MICROCAPITAL BRIEF: Grameen Foundation, US Agency for International Development (USAID) to Provide $1.5m in Credit Guarantees to Back Local-Currency Loans From Peruvian Credit Union Abaco to Microfinance Institutions (MFIs) Pro Mujer, Asociación Arariwa of Peru

Grameen Foundation, a US-based nonprofit organization that supports microfinance institutions (MFIs), and the United States Agency for International Development (USAID), a government agency that provides international economic and humanitarian assistance, will respectively provide credit guarantees worth USD 300,000 and USD 1.2 million to Cooperative de Ahorro y Credito Abaco, a Peruvian credit union. Continue reading

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MICROCAPITAL BRIEF: Panelists at Toronto International Microfinance Summit 2011 Discuss Interest Rate Pricing, Technological Solutions, Commercial and Philanthropic Funding

In a presentation at the recent Toronto International Microfinance Summit, panelists weighed in on a range of current topics in the microfinance sector, including profitability, the effect of commercial investment and advances in technology. Continue reading

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MICROCAPITAL BRIEF: “Intercontinental Ballistic Microfinance” Video Shows Graphic Of Kiva’s Worldwide Microlending Activities

Kiva, a US-based online portal allowing individuals to make loans to microfinance institutions (MFIs), recently posted a video simulation of the flow of funds between its lenders and borrowers across the globe from its incorporation in 2005 until 2011. Continue reading

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MICROCAPITAL BRIEF: Government of Andhra Pradesh, India, Launches Cooperative Microfinance Bank for Self-Help Groups (SHGs)

Self-help groups (SHGs) in the Indian state of Andhra Pradesh will soon have an alternative source of microloans in the form of Stree Nidhi, a cooperative microfinance bank that has been formed by the state government and the Mandal Mahila Samkhyas (MMS), a representative federation of SHGs. Continue reading

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MICROCAPITAL BRIEF: Clinton Global Initiative (CGI) 2011 Annual Meeting Occurring on September 20 – 22 Includes Haiti Investment Workshop

Clinton Global Initiative (CGI), an effort established by former US President Bill Clinton in 2005 to bring together a community of global leaders to alleviate poverty, create a cleaner environment and increase access to health care and education, is holding its 2011 Annual Meeting in New York City, US, from September 20 to September 22, 2011.   Continue reading

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MICROCAPITAL BRIEF: Ahmed El Bardai of Egyptian Microfinance Institution Reefy Predicts Boom in Lending to Small and Medium-Sized Enterprises to Boost National Economy

Mr Ahmed El Bardai, founder and chief executive of the Egyptian for-profit microfinance institution (MFI) Reefy, expects the country’s next government to focus on small and medium-sized enterprises (SMEs) to boost the economy that is facing a huge budget deficit and declining gross domestic product [1]. Continue reading

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MICROFINANCE EVENT: Royal Netherlands Embassy, Global Alliance for Banking on Values (GABV) to Host Roundtable Discussion on “Real” Banking for the Real Economy: Can Values-based Banking Sustainably Finance the Future?, September 22, 2011, in Washington DC, USA

Event Name: “Real” Banking for the Real Economy: Can Values-based Banking Sustainably Finance the Future?

Event Date: September 22, 2011; 5:00 pm to 7:00 pm

Event Location: Washington, DC, USA Continue reading

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MICROCAPITAL BRIEF: FINCA Case Studies Explore Relationship Between Food Security and Microfinance, Analyze Client Data Using World Bank’s Human Opportunity Index

FINCA International, a US-based network of microfinance institutions (MFIs) in 21 countries, recently published two case studies: “Exploring the Linkages between Food Security and Microfinance: A Study by FINCA in Zambia and Guatemala” and “FINCA Client Data Viewed through World Bank’s Human Opportunity Index.” Continue reading

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MICROCAPITAL BRIEF: Housing Microfinance Not a Viable Solution for Slums, Opines Ruban Selvanayagam

Mr Ruban Selvanayagam, a Brazil-based real estate and land consultant with EXITUS Construction Brazil, recently laid out a series of arguments against housing microfinance being the best solution to deal with the “wide and growing presence of slums, shanty towns and other forms of substandard housing” [1]. Continue reading

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