Category: Trends/Challenges

MICROFINANCE PAPER WRAP-UP: All Eyes on Asset Quality: Microfinance Global Valuation Survey 2010 Published by CGAP, Written by Xavier Reille, Christoph Kneiding, Daniel Rozas, Nick O’Donohoe and Frederic Rozeira de Mariz

Written by Xavier Reille, Christoph Kneiding, Daniel Rozas, Nick O’Donohoe and Frederic Rozeira de Mariz, published by CGAP (Consultative Group to Assist the Poor), March 2010, 40 pages, available at: http://www.cgap.org/gm/document-1.9.42531/OP16R.pdf

The authors of the paper aim to provide the investor community with benchmarks for the valuation of microfinance assets using two datasets, one being a sample of 200 private equity transactions between 2005 and 2009, the other being data on eight publicly listed low-income financial institutions (LIFIs). Continue reading

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MICROCAPITAL BRIEF: Kashf Foundation and Kashf Microfinance Bank, Two Microfinance Institutions (MFIs) in Pakistan, Agree to Set Up Savings Kiosks at Kashf Foundation Branches

Kashf Foundation, a microfinance institution (MFI) in Pakistan, and Kashf Microfinance Bank, a full-service microfinance bank founded by the Kashf Foundation in 2008, have signed an agreement to begin setting up savings kiosks at Kashf Foundation branches. Continue reading

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MICROCAPITAL EVENT: Latin American Forum: Carrying out Social Management in Microfinance: “Turning Mission into Practice,” Hosted by the Central America Regional Forum (REDCAMIF) on April 28 to 29, 2010

Event Name: Latin American Forum: Carrying out Social Management in Microfinance: “Turning Mission into Practice”

Event Date: April 28 to April 29, 2010

Event Location: Hotel Holiday Inn Managua, Nicaragua

Event Website: http://www.redcamif.org/eventos/vista-evento/i-foro-latinoamericano-gestion-de-desemepeno-social-llevando-la-mision-a-la-practica/event/20100428/?cHash=b7672c36f4

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events Continue reading

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MICROCAPITAL BRIEF: Making Finance Work for Africa (MFW4A) Launches Website Addressing Access to Finance, Regional Financial Integration and Remittances

The Partnership for Making Finance Work for Africa (MFW4A), an initiative that aims to coordinate financial sector development between African governments, the private sector and development organizations, recently launched a website, www.mfw4a.org. Continue reading

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MICROCAPITAL BRIEF: US-based International Development Non-profit Organization CHF International Sets Up CHF Finance Group to House Its Commercial Microfinance Institution Subsidiaries

CHF International, a US-based international development and humanitarian assistance non-profit organization, has set up a private holding company, CHF Finance Group, to house its commercial microfinance institution (MFI) subsidiaries. Continue reading

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MICROFINANCE PAPER WRAP-UP: Investing into Microfinance Investment Funds, by Karel Janda and Barbora Svárovská

Written by Karel Janda and Barbora Svárovská, published by the Institute of Economic Studies, Faculty of Social Sciences Charles University in Prague, 2009, 35 pages, available at:

http://www.microfinancegateway.org/gm/document-1.9.41460/Investing%20into%20Microfinance%20Investment%20Funds.pdf

This paper aims to measure the performance of microfinance investment vehicles (MIVs) in terms of risk and returns to investors. Continue reading

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MICROCAPITAL BRIEF: Philippine Microfinance Industry Reaches $200m and Reflects on Challenges for the Future

At a recent event gathering a number of Filipino public and private agencies from both the entrepreneurial and academic sector it came to light that the microfinance industry in the Philippines has grown into a PHP 12 billion (USD 200 million) industry. Continue reading

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MICROCAPITAL BRIEF: Mohammad Yunus, Founder of Grameen Bank, Calls Out Loan Shark Organizations

In an interview with Vikash Humar, Editor in Chief of Microfinance Focus, Mohammad Yunus, founder of Grameen Bank, blasted profit-seeking microfinance institutions (MFIs). He likened these institutions, which he defined as those who charge more than 15 percent plus the cost of funds, to the loan sharks that necessitated the foundation Grameen. While reluctant to name names, Mr Yunus offered Compartamos Banco, a Mexican microfinance bank founded in 1990, as an example of one of these firms. Mr Yunus additionally spoke out against IPOs by MFIs, such as Compartamos Banco and SKS Microfinance, a microfinance institution (MFI), launched in 1998, which caters to women clients in India. Continue reading

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MICROFINANCE PAPER WRAP-UP: Microfinance and Financial Sector Development, by Annabel Vanroose and Bert D’Espallier

Written by Annabel Vanroose and Bert D’Espallier, published by the Emile Bernheim Center Research Institute in Management Sciences at the Solvay Brussels School of Economics and Management in September 2009, 41 pages, available at http://www.solvay.edu/EN/Research/Bernheim/documents/wp09040.pdf

This paper aims to determine the impact of formal banking sector development on several measures of performance of microfinance institutions (MFIs). Continue reading

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MICROCAPITAL BRIEF: India-based Microfinance Institution (MFI) SKS Microfinance Plans to Apply for Commercial Banking License

SKS Microfinance, an Indian microfinance institution (MFI) registered as a non-banking financial company (NBFC), reportedly has plans to apply for a commercial banking license. An unnamed source told Indian news agency, Press Trust of India, that “SKS Microfinance is likely to approach the Reserve Bank [of India] for a banking license once the guidelines are issued.” Continue reading

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MICROCAPITAL BRIEF: Cambodian Microfinance Association Reports Improved First Quarter Performance over Last Quarter for Microfinance Institutions (MFIs) in Cambodia

According to microfinance industry officials in Cambodia, in the first quarter of 2010, non-performing loan (NPL) rates have remained mostly steady and loan disbursement by microfinance institutions (MFIs) has increased over the fourth quarter 2009. Continue reading

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MICROCAPITAL BRIEF: The European Fund for Southeast Europe (EFSE) Extends €6m Credit Line to Intesa Sanpaolo Banka in Bosnia and Herzegovina for Housing Microfinance

The European Fund for Southeast Europe (EFSE), a microfinance investment fund based in Luxembourg, recently announced plans to extend a EUR 6 million (USD 8.1 million) credit line to Intesa Sanpaolo Banka d.d. BiH, a commercial bank in Bosnia and Herzegovina that is majority-owned by Intesa Sanpaolo Group of Italy. Continue reading

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