Category: Trends/Challenges

MICROCAPITAL BRIEF: Hattha Kaksekar Limited (HKL) and Angkor Mikroheranhvatho Kampuchea (AMK), Two Microfinance Institutions (MFIs) Located in Cambodia, Receive Deposit-Taking Licenses

Hattha Kaksekar Limited (HKL) and Angkor Mikroheranhvatho Kampuchea (AMK), two microfinance institutions (MFIs) located in Cambodia, have received a deposit-taking license from the National Bank of Cambodia, the central bank of Cambodia. Continue reading

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MICROCAPITAL BRIEF: Surendra Pandey, Finance Minister of Nepal, Says Government is Considering Adding Contribution of “Microfinance Activities” to Gross Domestic Product (GDP)

Surendra Pandey, the Finance Minister of Nepal, has stated that the government is considering adding the contribution of “microfinance activities” to the calculation of the country’s gross domestic product (GDP). Continue reading

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MICROCAPITAL BRIEF: Syria “Struggles” to Find Sustainable Microfinance Model

According to an article in Business Today Egypt, although Syria has been “a regional front-runner in microfinance regulation, [it] is still struggling to find a sustainable model to finance its rural poor.” Continue reading

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MICROCAPITAL BRIEF: Microfinance Institution PRASAC Applies for License to Expand Deposit-Taking Activities

Cambodian microfinance institution (MFI) PRASAC plans to apply to the National Bank of Camodia (NBC) for a license that would expand its deposit-taking activities. Continue reading

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MICROCAPITAL BRIEF: Existing Government Payment Programs Could Bring More Rural Poor Into Financial System, According to Report by CGAP (Consultative Group to Assist the Poor) and Department for International Development (DFID)

According to a new report from CGAP (Consultative Group to Assist the Poor) and the U.K.’s Department for International Development (DFID) entitled, ‘Banking the Poor via G2P Payments,’ existing government payment programs could bring many more poor people into the formal financial services system. Continue reading

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MICROCAPITAL BRIEF: Bill & Melinda Gates Foundation Awards $6m Grant to Ecobank to Promote Low-Cost Savings Accounts in Ghana and Liberia

The Bill & Melinda Gates Foundation has provided a USD 6 million grant to Ecobank Transnational Incorporated (ETI), a pan-African bank with a network of over 500 branches in 27 countries. Continue reading

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MICROCAPITAL BRIEF: European Commission Works on Plan to Provide $139m in Microloans to Unemployed Youth

Mr Celestino Corbacho, the Spanish Employment Minister, recently announced that the European Commission is working on a plan to provide EUR 100 million (USD 139 million) in microloans to unemployed youth under the age of 25 and the long-term unemployed. Continue reading

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MICROCAPITAL BRIEF: National Association of Microfinance Banks (NAMB) to Embark on “Enlightenment Campaign” to Increase Knowledge of Microfinance in Nigeria

The National Association of Microfinance Banks (NAMB), an association of microfinance institutions (MFIs) in Nigeria, recently announced in Lagos, Nigeria, that it intends to embark on a campaign to increase knowledge of microfinance among potential clients in Nigeria. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: National Association of Microfinance Banks (NAMB) to Embark on “Enlightenment Campaign” to Increase Knowledge of Microfinance in Nigeria Posted in Africa, Trends/Challenges

MICROCAPITAL PAPER WRAP-UP: Behavioral Foundations of Microcredit: Experimental and Survey Evidence from Rural India, by Michael Bauer, Julie Chytilová, and Jonathan Morduch

Written by Michael Bauer, Julie Chytilová, and Jonathan Morduch, published by the Financial Access Initiative in December 2009, 47 pages, available at: http://financialaccess.org/sites/default/files/Behavioral%20Foundations%20of%20Microcredit%20-%20Bauer%20Chytilova%20Morduch%2012-18-09.pdf

This paper examines behavioral effects of time discounting and risk aversion as they relate to the acquisition of microcredit. Continue reading

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MICROCAPITAL BRIEF: Lok Capital Takes Equity Stake in RuralShores, Potential Back Office Provider to Microfinance Institutions

Lok Capital LLC, a venture fund focused on the microfinance sector in India, recently announced an equity investment in RuralShores Business Services Private Limited, which provides outsourced data entry services to businesses within India and abroad. Continue reading

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MICROCAPITAL BRIEF: Asia’s Microfinance Industry Dominated by US and European Investors, Says Standard Chartered’s Global Head of Microfinance, Mr Prashant Thakker

According to a recent article in The Business Times, a daily Singaporean newspaper, “Asia’s institutional and private investors have yet to warm to the microfinance sector, despite its prominence in the region and its resilience as an asset class this past downturn.” Continue reading

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MICROCAPITAL BRIEF: Kenyan Microfinance Institutions Struggle After Drought, Economic Crisis and 2008 Post-Election Violence

Kenyan microfinance institutions (MFI) are struggling to recover from a two-year slump caused by severe drought, the global financial crisis and post-election violence. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Kenyan Microfinance Institutions Struggle After Drought, Economic Crisis and 2008 Post-Election Violence Posted in Africa, Risks, Trends/Challenges

MICROCAPITAL BRIEF: Call to Contribute Expertise to Post-Crisis Microfinance Institution (MFI) Management Wiki for Haiti

ES Global, a consulting firm that focuses on social investing and micro- and small enterprise development, has created a wiki for post-crisis management support to microfinance institutions (MFIs) in Haiti. Continue reading

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MICROCAPITAL PAPER WRAP-UP: Successful Due Diligence When Evaluating Microfinance Investment Vehicles (MIVs) by Zoran Stanisljevic

By Zoran Stanisljevic, based on his interview with Christina Leijonhufvud, Managing Director of the Global Social Sector Finance Group at JP Morgan, published by MicroCapital.org, December 2009, 5 pages, available at http://www.microcapital.org/downloads/whitepapers/Diligence.pdf Continue reading

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MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) to Handover Debtors of Distressed Microfinance Banks to Economic and Financial Crimes Commission (EFCC) and Revoke Operating Licenses of Microfinance Banks That Have Closed Operations for More Than Six Months

An investigation by Vanguard, a newspaper in Nigeria, indicates that the Central Bank of Nigeria (CBN) is currently compiling names of individuals who have received loans from microfinance banks and have failed to repay those funds. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) to Handover Debtors of Distressed Microfinance Banks to Economic and Financial Crimes Commission (EFCC) and Revoke Operating Licenses of Microfinance Banks That Have Closed Operations for More Than Six Months Posted in Africa, Trends/Challenges

MEET THE BOSS: Discussions on Developing a Global Credit Ratings Framework for Microfinance Institutions: Interview with Damian von Stauffenberg, Founder and Chairman of MicroRate

Damian von Stauffenberg is the founder of MicroRate, a rating agency specializing in microfinance.  Mr. von Stauffenberg founded MicroRate in 1997 and served as its CEO until 2009.  Through its Latin American and African subsidiaries, MicroRate has conducted over 400 ratings of microfinance institutions in Latin America, Africa and Eastern Europe. 

Mr. von Stauffenberg previously worked for 25 years at the World Bank and its private sector affiliate, the International Finance Corporation (IFC).  He has been president of Seed Capital Development Fund (SCDF), chairman of the investment committee of ProFund, chairman of the executive committee of MicroVest and a member of the executive committee of the Latin American Challenge Investment Fund (LA-CIF). Continue reading

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MICROCAPITAL BRIEF: First MicroFinance Bank Limited Pakistan (FMFB-P) Renews Deal to Provide Microfinance Services Through Pakistan Post Office (PPO) Sub-Offices

First MicroFinance Bank Limited Pakistan (FMFB-P) and the Pakistan Post Office (PPO) have renewed a partnership to provide microfinance services through PPO sub offices for three more years [1,2,3]. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: First MicroFinance Bank Limited Pakistan (FMFB-P) Renews Deal to Provide Microfinance Services Through Pakistan Post Office (PPO) Sub-Offices Posted in Middle East, Trends/Challenges

MICROCAPITAL BRIEF: US Government Facilitates $2m Cash Transfer to Haitian Microfinance Institution (MFI) Fonkoze

The US government has facilitated a USD 2 million transfer in reserves from City National Bank of New Jersey (CNB) to 34 branches of Fonkoze, a Haitian microfinance institution (MFI) that had been running low on cash since the January 12 earthquake. Continue reading

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