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].

MICROCAPITAL BRIEF: State Bank of Pakistan Releases Five-Year “Microfinance Strategic Framework,” Launches Financial Literacy Programme

The State Bank of Pakistan (SBP), Pakistan’s central bank, recently announced that it has developed a detailed strategy to promote the sustainable growth of microfinance as outlined in its “Microfinance Strategic Framework 2011-2015” that is intended to “foster a pro-poor and sustainable development of the country” [1].

MICROCAPITAL BRIEF: Indian Microfinance Institutions Shift from Lending Mostly to Women Towards Relatively Gender-Balanced Portfolio, Reports Elena Bridgers in Stanford Social Innovation Review

Elena Bridgers, a social researcher based in France, recently authored an article on the website of the US-based Stanford Social Innovation Review exploring the shift of microfinance institutions (MFIs) in India from a primarily “female client base” to a more “gender-balanced portfolio” [1].

MICROCAPITAL BRIEF: Asasah of Pakistan to Collect Microloan Repayments via Easypaisa Service of Tameer Microfinance Bank, Telenor Pakistan

Asasah, a microfinance institution (MFI) in Pakistan, reportedly has announced that it will be utilizing Easypaisa, the branchless banking service of MFI Tameer Microfinance Bank Limited (TMFB) of Pakistan, as an option for borrowers to repay their loans [1].

MICROFINANCE EVENT: CGAP (Consultative Group to Assist the Poor) Hosts Virtual Conference “Understanding Multiple Borrowing and Avoiding Over-indebtedness Among Clients,” January 12 and 13, 2012

Event Name: Understanding Multiple Borrowing and Avoiding Over-indebtedness Among Clients

Event Date: January 12 – 13, 2012

Event Location: Online

MICROCAPITAL BRIEF: Stymied by Local Regulation, Microfinance Institutions (MFIs) based in India’s Andhra Pradesh Expand Into Northern States

Following the enactment of the Regulation of Microlending Act in October 2010 by government of the Indian state of Andhra Pradesh (AP), which requires government approval of each microloan, microfinance institutions (MFIs) based in AP have began expanding into northern India.

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.

MICROCAPITAL BRIEF: International Finance Corporation (IFC), India’s Microfinance Institutions Network (MFIN) Promote Reporting to Credit Information Bureau

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and the Microfinance Institutions Network (MFIN), a self-regulatory organization of Indian microfinance institutions, are working together to encourage microfinance institutions to start reporting to the country’s Credit Information Bureau, which is intended to promote responsible lending.

MICROCAPITAL BRIEF: FinMark Trust’s Annual FinScope South Africa Survey: Financial Inclusion Down from 77% to 73%

FinMark Trust, a nonprofit trust based in South Africa, has released the 2011 results of its annual FinScope South Africa survey, which indicates that 73 percent of adults use financial products and services, a drop from the 2010 level of 77 percent.

MICROFINANCE PUBLICATION ROUND-UP: Group Versus Individual Lending in Mongolia, “State of the Practice” of Client Protection, Uganda “Triple Partnership” Case Study

Group lending or individual lending? Evidence from a randomised field experiment in Mongolia” by Orazio Attanasio, Britta Augsburg, Ralph De Haas, Emla Fitzsimons, Heike Harmgart; published by the European Bank for Reconstruction and Development (EBRD); December 2011; 48 pages; available at: http://www.ebrd.com/downloads/research/economics/workingpapers/wp0136.pdf

MICROCAPITAL BRIEF: Nepal to Introduce Microinsurance Fund, Deems Work of NGOs Offering Microinsurance “Illegal” Unless Working with Licensed Insurance Companies

The Nepalese government is instituting a microinsurance fund that will “reinsure” products sold by insurers to “divert risk created by settlement of insurance claims” [1].

MICROFINANCE PAPER WRAP-UP: Poverty, Income Inequality, and Microfinance in Thailand; By Kelly Bird, Kelly Hattel, Eiichi Sasaki and Luxmon Attapich; Published by the Asian Development Bank

By Kelly Bird, Kelly Hattel, Eiichi Sasaki and Luxmon Attapich; Published by the Asian Development Bank; November 2011; 23 pages; available at http://beta.adb.org/sites/default/files/poverty-income-inequality-microfinance-thailand.pdf

MICROCAPITAL BRIEF: Vittana Receives $250k Grant from Google to Expand Online Lending for Education Microfinance

Vittana, a US-based nonprofit that raises funding for microloans for higher education in developing countries, has received a USD 250,000 grant from US-based internet and software company Google to expand its work over the course of two years [1].

MICROCAPITAL BRIEF: Village Savings and Loan Associations Featured in The Economist as “Hottest Trend in Microfinance”

A recent article in British weekly news magazine The Economist featured village savings and loan associations (VSLA), describing them as the “hottest trend in microfinance.”

MICROCAPITAL BRIEF: Fondazione Giordano Dell’Amore, European Microfinance Network Announce Giordano Dell’Amore Microfinance Good Practices Europe Award

Fondazione Giordano Dell’Amore, an Italian foundation, and the European Microfinance Network (EMN) have announced the fourth edition of the Giordano Dell’Amore Microfinance Good Practices Europe Award, which aims to increase the understanding of microfinance and promote the sharing of good practices among industry players in Europe.

MICROFINANCE PAPER WRAP-UP: “Too Much Microcredit? A Survey of the Evidence on Over-Indebtedness;” by Jessica Schicks, Richard Rosenberg; Published by CGAP (Consultative Group to Assist the Poor)

By Jessica Schicks and Richard Rosenberg, published by CGAP (Consultative Group to Assist the Poor), September 2011, 44 pages, available at: http://www.cgap.org/p/site/c/template.rc/1.9.55377/

MICROCAPITAL BRIEF: Center for Financial Inclusion Releases “Over-Indebtedness of Microborrowers in Ghana” by Jessica Schicks

The Center for Financial Inclusion (CFI), an affiliate of US-based nonprofit ACCION International, recently released a report on “Over-Indebtedness of Microborrowers in Ghana,” which explores the gap between providers’ and clients’ perceptions of indebtedness [1].