Category: Trends/Challenges

MICROCAPITAL BRIEF: Microfinance Insights Releases Report, “Is Information and Communication Technology Fueling the Growth of Microfinance?”

Microfinance Insights, a publication produced by the social-sector advisory firm Intellecap, recently released a survey report titled, “Is Information and Communication Technology Fueling the Growth of Microfinance?” 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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MICROCAPITAL BRIEF: Initial Public Offering (IPO) of India-based Microfinance Institution (MFI) SKS Microfinance Raises Questions about Ethics within the Industry

With the initial public offering (IPO) of SKS Microfinance, an Indian microfinance institution (MFI), expected to raise USD 250 million to USD 350 million for the MFI and its private equity (PE) investors, questions have been raised about the ethics of MFI investors profiting millions of dollars when their customers are poor. Continue reading

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MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Commences Nationwide Investigation of Microfinance Institutions (MFIs)

After a joint examination exercise with the Central Bank of Nigeria (CBN) and a slew of complaints from depositors of microfinance institutions (MFIs) that have shut down, the Nigeria Deposit Insurance Corporation (NDIC), the country’s financial industry regulator, recently began a nationwide investigation of MFIs. Continue reading

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MICROCAPITAL BRIEF: Editorial in Nigeria’s Daily Trust Urges Central Bank of Nigeria (CBN) to Tighten Regulation of Microfinance

In a recent op-ed piece published in Nigeria’s online Daily Trust, Ms Ijeoma Kalu urges the Central Bank of Nigeria (CBN) to tighten regulation of the microfinance industry and ensure “that only professionals are permitted to practice.” Continue reading

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