Category: Trends/Challenges

MICROCAPITAL BRIEF: MicroRate Founder Damian von Stauffenberg is First to be Named to LuxFLAG Microfinance Label Eligibility Committee

The Luxembourg Fund Labelling Agency (LuxFLAG), a microfinance investment vehicle (MIV) and environment-related investment vehicle (EIV) certification organization, recently announced that Mr Damian von Stauffenberg, the founder of US-based microfinance rating agency MicroRate, has been named to the eligibility committee of LuxFLAG’s Microfinance Label [1]. Continue reading

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MICROCAPITAL BRIEF: “SPM in Microfinance 24*7 Helpline” Offers Advice to Front-Line Workers Regarding Social Performance Management

Founded in 2011 in India, “SPM in Microfinance 24*7 Helpline” is an online resource that aims to help institutions and individuals worldwide with issues related to social performance management (SPM) in microfinance [1]. Continue reading

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MICROCAPITAL BRIEF: SKS Microfinance to Further Downsize Workforce, Cap Return on Assets at 3%

SKS Microfinance, a microfinance institution (MFI) in India, reportedly will continue to downsize its workforce as it has been since the enactment of the Regulation of Microlending Act in October 2010 in the state of Andhra Pradesh, which requires government approval of each microloan. Continue reading

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MICROFINANCE OPINION: Crowdfunding May Be Next Frontier for Microenterprise Funding

With institutional investors looking to amend their charters to allow private share purchases, I believe that the private company marketplace will start showing significant momentum in the first half of 2013. I foresee the rapid emergence of private shares desks within conventional financial firms. Continue reading

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MICROCAPITAL BRIEF: State Bank of India to Grow Microfinance Portfolio by 50%, Microfinance Institutions Network Promotes Wholesale Lending to Sector

The State Bank of India (SBI) reportedly plans to grow its microfinance portfolio by 50 percent during the fourth quarter of the fiscal year. Continue reading

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MICROFINANCE PAPER WRAP-UP: “Bank Agents: Risk Management, Mitigation, and Supervision;” by Kate Lauer, Denise Dias, Michael Tarazi; Published by CGAP (Consultative Group to Assist the Poor)

By Kate Lauer, Denise Dias and Michael Tarazi; published by CGAP (Consultative Group to Assist the Poor); December 2011; 24 pages; available at: http://www.cgap.org/p/site/c/template.rc/1.9.55781/ Continue reading

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Written by Comments Off on MICROFINANCE PAPER WRAP-UP: “Bank Agents: Risk Management, Mitigation, and Supervision;” by Kate Lauer, Denise Dias, Michael Tarazi; Published by CGAP (Consultative Group to Assist the Poor) Posted in Regulation, Risks, Trends/Challenges

MICROFINANCE EVENT: LDJ Capital, NowStreet Media to Host “The SoHo Loft Capital Creation and Crowdfunding Conference (TSLCCAC),” January 23, 2012, New York, United States

Event Name: The SoHo Loft Capital Creation and Crowdfunding Conference (TSLCCAC)The Soho Loft Capital Creation Events

Event Date: January 23, 2012, 1 pm to 8:30 pm

Event Location: Reed Smith NY Conference Center, New York, USA Continue reading

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Written by Comments Off on MICROFINANCE EVENT: LDJ Capital, NowStreet Media to Host “The SoHo Loft Capital Creation and Crowdfunding Conference (TSLCCAC),” January 23, 2012, New York, United States Posted in Events, Technology, Trends/Challenges

MICROFINANCE PAPER WRAP-UP: Latest Findings from Randomized Evaluations of Microfinance; By Jonathan Bauchet, Cristobal Marshall, Laura Starita, Jeanette Thomas and Anna Yalouris; Published by CGAP

By Jonathan Bauchet, Cristobal Marshall, Laura Starita, Jeanette Thomas and Anna Yalouris; Published by CGAP (Consultative Group to Assist the Poor); December 2011; 32 pages; available at http://www.cgap.org/gm/document-1.9.55766/FORUM2.pdf Continue reading

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Written by Comments Off on MICROFINANCE PAPER WRAP-UP: Latest Findings from Randomized Evaluations of Microfinance; By Jonathan Bauchet, Cristobal Marshall, Laura Starita, Jeanette Thomas and Anna Yalouris; Published by CGAP Posted in Trends/Challenges

MICROCAPITAL BRIEF: MicroSave Survey: Reliance on Loan Sharks High, Microfinance Repayment Rates Low in Andhra Pradesh, India

The downturn in the microfinance industry in the Indian state of Andhra Pradesh has resulted in brisk business for traditional moneylenders according to a study entitled “What are Clients doing Post the Andhra Pradesh MFI Crisis?” from MicroSave, a microfinance advisory firm with offices in India, Indonesia, the Philippines and Uganda. Continue reading

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MICROCAPITAL BRIEF: Private Equity Investors Wary As Return on Equity for Indian Microfinance Institutions Drops from Over 45% to Under 20%

The steep decline in microloan repayments that began in 2010 in the Indian state of Andhra Pradesh (AP) is continuing to keep private investors away from microfinance institutions (MFIs). Continue reading

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MICROCAPITAL BRIEF: “Nokia Money” Electronic Wallet Service Launched in India in Effort to Promote Financial Inclusion

Nokia Corporation, a Finnish telecommunications company, has launched Nokia Money, an electronic-wallet service, in an effort to promote financial inclusion of previously “underbanked” people across India [1]. Continue reading

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MICROCAPITAL BRIEF: Lagos Chapter of Nigeria’s National Association of Microfinance Banks (NAMB) to Undertake Micro-Housing Project

The Lagos State Chapter of the National Association of Microfinance Banks (NAMB), a trade group of microfinance banks (MFBs) in Nigeria, has announced that it plans to undertake a micro-housing project for “low-income earners” in Lagos state [1]. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Lagos Chapter of Nigeria’s National Association of Microfinance Banks (NAMB) to Undertake Micro-Housing Project Posted in Africa, Key Players, Trends/Challenges

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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MICROCAPITAL BRIEF: Central Bank of Kenya to Allow Deposit-Taking Microfinance Institutions (DTMs) to Use Agents to Provide Financial Services

The Central Bank of Kenya (CBK), Kenya’s central banking authority, has reportedly issued guidelines allowing deposit-taking microfinance institutions (DTMs) to use agents to provide financial services in an effort to promote financial inclusion of the “unbanked and under-banked population” [1]. Continue reading

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MICROCAPITAL BRIEF: Indian NGO Gramalaya Creates Microfinance Institution Gramalaya Microfin Foundation

Gramalaya, an Indian nongovernmental organization (NGO), has launched a new microfinance institution (MFI), Gramalaya Microfin Foundation (GMF) that aims to “eradicate poverty through livelihood promotion activities through increased access to financial services” [1]. Continue reading

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MICROCAPITAL BRIEF: Nigeria’s National Association of Microfinance Banks (NAMB) Asks Government Not to Set Up Microlenders

The Lagos State Chapter of the National Association of Microfinance Banks (NAMB), a trade group of microfinance banks (MFBs) in Nigeria, has reportedly asked the federal government not to set up MFBs [1]. 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: TBC Capital Asset Management Looking to Raise $75m for “TBC Capital Impact Investing Fund-I” to Invest in Microfinance, Sustainable Agriculture, and Clean and Base-of-Pyramid Infrastructure

TBC Capital Asset Management Incorporated, a Canada-based investment management firm with a special focus on impact investments, is launching its TBC Capital Impact Investing Fund-I (TBCCIIF-I), which is a pooled fund established to invest in organizations that operate in the areas of: (a) microfinance – mainly tier-2 microfinance institutions and service providers to them – which will account for approximately 65 percent of the fund; (b) small and medium-sized enterprises (SMEs) “with high positive impact,” especially those involved in sustainable agriculture, which will receive approximately 20 percent of fund investments; and (c) clean and “base-of-pyramid” infrastructure, accounting for approximately 15 percent of the fund [1]. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: TBC Capital Asset Management Looking to Raise $75m for “TBC Capital Impact Investing Fund-I” to Invest in Microfinance, Sustainable Agriculture, and Clean and Base-of-Pyramid Infrastructure Posted in Investment Funds, Key Players, Trends/Challenges