Category: Trends/Challenges

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: Central Bank of Kenya (CBK) Licenses Kenya Women Finance Trust (KWFT) as Deposit Taking Microfinance Institution (MFI)

The Kenya Women Finance Trust (KWFT), a microfinance institution (MFI) that currently provides credit to over 334,000 women clients, has been granted a license to accept deposits. 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: Microfinance Information Exchange (MIX) Releases April 2010 E-Newsletter

The nonprofit Microfinance Information Exchange (MIX) has released its April 2010 e-newsletter highlighting recent and upcoming MIX activities, publications and upcoming microfinance events. 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: Wealthy Individuals in India Increasingly Look for Investment Opportunities in Microfinance Institutions (MFIs)

A recent article on Livemint.com, an Indian business newspaper owned by the Wall Street Journal, pointed to the growing tendency for individuals in India to invest in microfinance institutions (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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MICROCAPITAL BRIEF: Economic Downturn Causes Liquidity Crisis Among Pakistan’s Microfinance Institutions (MFIs), but Default Rate Remains Low So Far

The default rate for Pakistan’s microfinance institutions (MFIs) stands at two percent, while non-performing loans of commercial banks is at 12.2 percent, according to an article in Pakistan’s daily The News International. Continue reading

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MICROCAPITAL BRIEF: Ghana MicroFinance Institutions Network (GHAMFIN) Says Proposed Capitalization Requirements May Not Go Far Enough

The Ghana Microfinance Institutions Network (GHAMFIN), an informal network of institutions and individuals in the microfinance industry, recently expressed concern over the prevalence of unaccredited microfinance institutions (MFIs). Continue reading

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MICROFINANCE EVENT: “Aligning Stakeholder Interests: Making MFI Transitions Work” Online Forum Hosted by US Agency for International Development (AID) on April 13 – April 15, 2010

Event Name: Speaker’s Corner 36: Aligning Stakeholder Interests: Making MFI Transitions Work

Event Date: April 13 to April 15, 2010

Event Location: This is an online forum. To sign up for the discussion, visit http://www.surveymonkey.com/s/VZFLY6M

Event Website: http://www.microlinks.org/sc/aligninginterests

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

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MICROCAPITAL BRIEF: President of Kenya Calls for Microfinance Institutions (MFIs) to Provide Broader Range of Services to Increase Clients’ Wealth

Mwai Kibaki, the President of Kenya, speaking at the opening of the 2010 Africa/Middle East Regional Microcredit Summit being held in Nairobi, called for microfinance institutions (MFIs) to provide a broader range of services to better improve their clients’ economic positions. Continue reading

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MICROCAPITAL BRIEF: Small Enterprise Education and Promotion (SEEP) Network Launches Suite of Tools for Microfinance Association Professionals

The Small Enterprise Education and Promotion (SEEP) Network, an international organization with the goal of connecting microenterprise practitioners, has announced the launch of its Suite of Tools for Microfinance Association Professionals. Continue reading

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