Category: Trends/Challenges

MICROCAPITAL BRIEF: Interest Rates and Microfinance Debated in “Does Micro Finance Alleviate Poverty? Borrowers Response” Seminar in Dhaka, Bangladesh

Rapport Bangladesh Limited (RBL), a professional management services organization, recently organized a seminar in Dhaka titled “Does Micro Finance Alleviate Poverty? Borrowers Response”. Continue reading

Share

MICROFINANCE EVENT: “Water It Down!: What Does Clean Water Have to Do With Microfinance and Ridding the World of Poverty?” organized by Silicon Valley Microfinance Network (SVMN) in San Francisco, California, US; January 12, 2010

Event Name: Water it Down!: What does clean water have to do with microfinance and ridding the world of poverty?

Event Description: The guest speakers, Gary White and April Rinne, from WaterCredit, a newly launched initiative by Water.org, intends to address the relationship between water sanitation and microfinance in poverty alleviation. WaterCredit program provides microcredit loans to the poor so that they may eventually tackle their own water needs. Continue reading

Share

MICROCAPITAL BRIEF: Critics Claim that Bosnian Microfinance Institutions Simply Issuing “Commercial Loans Masquerading as Microfinance”

A recent article from Al Jazeera English, an English-language news source based in Qatar, cited critics blaming the decline in the Bosnian microfinance sector on the profit-driven orientation of the country’s microfinance institutions (MFIs). Continue reading

Share

MICROCAPITAL BRIEF: African Development Bank (AfDB) Approves $660k Grant to Access Bank Tanzania (ABT), a Microfinance Bank in Tanzania

The African Development Bank (AfDB), a regional development organization in Africa, has approved a USD 660,000 grant to Access Bank Tanzania (ABT), a newly established commercial bank in Tanzania focusing on microfinance. The initiative was made possible through the Fund for African Private Sector Assistance (FAPA), a subsidiary of the Enhanced Private Sector Assistance program, which is a billion-dollar initiative of the government of Japan and the AfDB to promote private sector development in Africa. Continue reading

Share

MICROCAPITAL BRIEF: The Central Bank of Nigeria (CBN) Investigates “Fraudulent Practices” at Five Recently Failed Nigerian Microfinance Banks

Mr. Olufemi Fabanwo, Nigeria’s (CBN) Director of the Other Financial Institutions Department, told news agencies that the central bank will investigate five recently failed microfinance banks and, if any operators are found to be fraudulent, he or she will be handed over to the EFCC, the country’s law enforcement agency. Operators are considered fraudulent if they have no state license to engage in banking activities. The five banks are: Integrated Microfinance Bank, KFC Microfinance Bank, Bristol Microfinance Bank, Unique Microfinance Bank, and Milestone Microfinance Bank, all based in Lagos. Continue reading

Share

MICROCAPITAL BRIEF: Conglomerates Enter the Microfinance Industry in South Korea Via the Government-Inspired Miso (Smile) Microcredit Foundation

After Samsung, one of the world’s largest conglomerates by revenue, and Woori Financial Group, a Seoul-based financial services holding company, recently opened branches of the Miso Microcredit Foundation, other Korean conglomerates have begun to follow suit. The Miso (Smile) Microcredit Foundation is a government-led microcredit lending program in Korea that plans to raise KRW 2 trillion (USD 1.69 billion) over the next 10 years. Continue reading

Share

MICROCAPITAL BRIEF: Central Bank of Indonesia Predicts Increase in Microcredit for Small and Medium-sized Enterprises (SMEs) in North Sumatra

Bank Indonesia (BI), the central bank of Indonesia, has predicted that the supply of microcredit to low and medium-income enterprises will increase this year. According to Gatot Sugiono, a BI representative from Medan, the capital of North Sumatara, the supply of microcredit could increase to above 50 percent of total bank credits in North Sumatra. The increase would suggest greater access to credit among low-income enterprises. Mr. Sugiono recently estimated the present supply of microcredit at IDR 68.3 trillion (USD 7.2 billion). [1] Continue reading

Share

MICROCAPITAL BRIEF: Abhijit Vinayak Banerjee and Esther Duflo of MIT, Dean Karlan of Yale Write New York Times Article Entitled “The Role of Microfinance”

Abhijit Vinayak Banerjee and Esther Duflo of the Massachusetts Institute of Technology (MIT) and Dean Karlan of Yale University of Connecticut have written an editorial for the New York Times entitled “The Role of Microfinance” [1]. Continue reading

Share

MICROCAPITAL BRIEF: Reynaldo G. David, President and Chief Executive Officer (CEO) of the State-Owned Development Bank of the Philippines (DBP), Comments on the DBP’s Efforts to Support Micro, Small, and Medium Enterprises (MSMEs) Through a Wider “Range of Activities”

Reynaldo G. David, President and Chief Executive Officer (CEO) of the state-owned Development Bank of the Philippines (DBP), has commented on the DBP’s efforts to increase support for micro, small, and medium enterprises (MSMEs) through a wider “range of activities” [1,2]. Continue reading

Share

MICROFINANCE PAPER WRAP-UP: Climate Change and Microfinance by Asif Dowla

Written by Asif Dowla, published by Grameen Foundation and Oxfam America in November 2009, 39 pages, available at: http://www.oxfamamerica.org/press/pressreleases/grameen-foundation-and-oxfam-america-release-new-report-on-climate-change-and-microfinance Continue reading

Share

MICROCAPITAL BRIEF: UnityKapital Assurance Plc of Nigeria Announces Information Technology Development, Expansion into Microinsurance

UnityKapital Assurance Plc, a Nigerian insurance company with a recorded NGN 518 million (USD 3.47 million) profit after tax in 2008, has announced the deployment of a comprehensive information technology (IT) system and an expansion into newer areas of insurance, including Islamic insurance and microinsurance. Continue reading

Share

MICROCAPITAL BRIEF: Critics Accuse Smile Microcredit Foundation of Heavy-Handed Regulation, Stifling Access to Microfinance in Korea

Despite the increase in microcredit financing in South Korea, many analysts warn that low-income individuals may be unable to access small loans due to various rules and requirements. A case example is the owner of a small clothing shop in Jegi-dong, Seoul who was unable to receive a loan of KRW 40 million (USD 33,700) from Woori Microcredit Bank, a subsidiary of Woori Financial Group and an affiliate of the “Smile Microcredit Foundation,”  a government-led microcredit lending program in Korea. [4] The woman failed to meet a requirement stipulating that business owners must have run his or her shop for at least two years to be eligible for microcredit. Continue reading

Share