Category: Trends/Challenges

MICROFINANCE PAPER WRAP UP: Microfinance Activities and the Core Principles for Effective Banking Supervision, by the Basel Committee on Banking Supervision

Written by the Basel Committee on Banking Supervision, released in August 2010, 57 pages, available at http://www.bis.org/publ/bcbs175.htm

This paper written by the Basel Committee on Banking Supervision, a subcommittee of the Bank for International Settlements, which is an intergovernmental organization of central banks, reviews the applicability of its 2006 Core Principles for Effective Banking Supervision [1], the de facto standard on prudential regulation and supervision of banks, to the emerging class of microfinance institutions (MFIs), including both depositing-taking MFIs and cooperatives. Continue reading

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MICROCAPITAL BRIEF: University Meets Microfinance (UMM) Offers Scholarship Opportunities for Microfinance Studies

The University Meets Microfinance (UMM) is offering scholarships for future and ongoing field research operated under the umbrella of a Bachelors, Masters or equivalent program by students in universities in the European Union. Continue reading

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MICROCAPITAL BRIEF: Opinion Column Suggests Decline of Microfinance

“Goodbye, microfinance,” a column by opinion writer T K Arun, of The Economic Times, foresees an end to microfinance. The Economic Times is a publication focusing on the Indian economy. Mr Arun argues that the conditions that led to the success of microfinance are eroding in his home country of India. Continue reading

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MICROCAPITAL BRIEF: Indian Microfinance Institutions Shifting to Monthly Loan Repayment Schedule

Indian microfinance institutions (MFIs) are offering loan products with monthly repayment plans as opposed to weekly payment terms, and according to a recent article more Indian microfinance institutions are considering offering products with monthly payment terms [1]. Continue reading

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MICROCAPITAL BRIEF: Brian Cox Highlights Emerging Challenges for Microfinance Institutions (MFIs)

On August 30, 2010, Brian Cox, the president of MFX Solutions LLC, a company which offers currency hedging instruments, highlighted several emerging challenges that microfinance institutions (MFIs) face as they expand such as currency risks, tighter regulation, and tougher capital adequacy requirements in a recent interview with Microfinance Focus. Continue reading

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MICROFINANCE PAPER WRAP-UP: It’s Time to Address the Microsavings Challenge, Scalably, by Bob Christen and Ignacio Mas, Published by Practical Action Publishing

By Bob Christen and Ignacio Mas, published by Practical Action Publishing, December 2009, 20 pages, available at: http://www.microfinancegateway.org/gm/document-1.9.45939/Meeting%20the%20microsavings%20challenge.pdf

The authors of this paper begin their argument for microsavings by claiming that it will not only expand the livelihoods of poor people, but will help microfinance institutions (MFIs) secure a stable source of funding. Continue reading

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MICROCAPITAL BRIEF: Consultant Sahil Sondhi Calls for Strategy Realignment for Indonesian Microfinance Sector

Sahil Sondhi, an associate consultant at Strategic Asia, a Jakarta based consultancy, wrote an article that appeared recently on the Jakarta Globe website calling for a new strategy in the Indonesian microfinance sector. Continue reading

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MICROCAPITAL BRIEF: Study by ACCION’s Center for Financial Inclusion Outlines Best Practices of For-Profit Microfinance Institutions (MFIs) to Preserve Social Objectives

Elisabeth Rhyne, the Managing Director of the Center for Financial Inclusion, an organization founded by US-based nonprofit ACCION International, wrote an article that recently appeared on The Huffington Post website [1] outlining best practices that could help nonprofit microfinance institutions (MFIs) keep their social mission while transforming themselves into for-profit operations. Continue reading

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MICROCAPITAL BRIEF: Financial Times’ FundFire Reporter Calls on Big Brokerages to Link Investors and Microfinance Institutions

In a recent column published in The Financial Times, Tom Stabile, a reporter for the The Financial Times publication FundFire, argues that big brokerages, especially American ones, should play a role in linking wealthy investors to microfinance institutions.  Continue reading

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MICROCAPITAL EVENT: Hanson Wade Hosts Microfinancial Services World: Innovation In Microfinance Conference in Washington D.C., October 25 to 28

Event Name: Microfinancial Services World: Innovation In Microfinance

Event Date: October 25 – October 28, 2010

Event Location: Crowne Plaza Hamilton, Washington D.C. Continue reading

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MICROCAPITAL BRIEF: Burcu Guvenek Arasli Calls for More Private-Sector Involvement in Microfinance Industry of Turkey

Burcu Guvenek Arasli, a lecturer at Turkey’s Middle East Technical University, recently authored an article published on the Hurriyet Daily News website [1] that describes the state of the microfinance industry in Turkey today. Continue reading

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MICROCAPITAL BRIEF: New Book “Why Doesn’t Microfinance Work?” by Milford Bateman Challenges Effectiveness of Microfinance

Milford Bateman challenges many of the common assumptions regarding microfinance in his book “Why Doesn’t Microfinance Work?” published June 10, 2010 by Zed Books. The book primarily argues that microfinance is not only an ineffective tool against poverty, but that it encourages it by trapping entrepreneurs in low-value-added enterprises [1]. Continue reading

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MICROCAPITAL BRIEF: World Bank, ACCION’s Center for Financial Inclusion Host Discussion on Access to Microfinance for Disabled People

The Center for Financial Inclusion of US-based nonprofit ACCION and the World Bank’s Global Partnership for Disability and Development recently hosted a roundtable discussion titled ‘A New Financial Access Frontier: People With Disabilities,’ to discuss the facilitation of financial access for disabled individuals in developing countries [1]. Continue reading

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MICROCAPITAL BRIEF: MicroSave Releases Third Publication Under its Optimising Performance and Efficiency (OPE) Series, Entitled “The Savings Booklet”

MicroSave, a technical assistance, training and technical resource center for microfinance established in Uganda in 1998, has released the third publication under its Optimising Performance and Efficiency (OPE) Series, entitled “The Savings Booklet.” Continue reading

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MICROCAPITAL BRIEF: CARE International UK Launches New Microfinance Website, www.lendwithcare.org

CARE International UK, an affiliate of the aid agency CARE International, has launched www.lendwithcare.org, a microfinance website through which the public may provide funding to CARE’s partner microfinance institutions. Continue reading

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MICROFINANCE WRAP-UP: Microfinance Synergies and Trade-offs: Social versus Financial Performance Outcomes in 2008, by Adrian Gonzalez, Published by The Microfinance Information Exchange (MIX)

By Adrian Gonzalez, published by the Microfinance Information Exchange (MIX), August 2010, 15 pages, available at http://www.themix.org/sites/default/files/MIX%20Data%20Brief%207.pdf.

Adrian Gonzalez, a lead researcher for the Microfinance Information Exchange (MIX), conducted an econometric analysis to investigate whether there is a tradeoff between social performance (SP) and financial performance (FP) among microfinance institutions (MFIs) that reported data to MIX for the year 2008. Continue reading

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MICROCAPITAL BRIEF: John Cookson of Big Think Argues Socially Responsible, Profit-Maximizing Microfinance Are Mutually Exclusive; Cites Muhammad Yunus’ Appearance on “The Simpsons” as Proof of Mainstreaming

John Cookson, a writer for an online “forum for connecting people and ideas,” Big Think, recently wrote a blog entry entitled “Microfinance: For Community or for Gain?” which questions the present-day motives of microfinance institutions (MFIs) quoting Jonathan Morduch, Professor of Public Policy and Economics at the New York University Wagner Graduate School of Public Service. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: John Cookson of Big Think Argues Socially Responsible, Profit-Maximizing Microfinance Are Mutually Exclusive; Cites Muhammad Yunus’ Appearance on “The Simpsons” as Proof of Mainstreaming Posted in Risks, Transparency, Trends/Challenges

MICROCAPITAL BRIEF: Vijay Pratap Singh, Co-founder and CEO of Ekgaon Technologies, Discusses the Future of Information and Communication Technology (ICT) in Microfinance Institutions (MFIs)

Mr Vijay Pratap Singh, co-founder and CEO of Indian information and communication technology (ICT) provider Ekgaon Technologies, recently was interviewed by microfinance news website, MicrofinanceFocus.com concerning the impact of ICT on microfinance. Mr Singh claims that up to now, new technology has been “reluctantly received” and “half-heartedly implemented” by microfinance institutions (MFIs). Of impediments to progress, he notes that some MFIs have been unwilling to modify operational models to accommodate the new technologies. More importantly, he claims that MFIs are unable to utilize the full potential of ICT because they are unwilling to invest in operational efficiency, specifically in human resources. Continue reading

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