Category: 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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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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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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MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Creates Mandatory Exam for Microfinance Bank Managers

At the fourth Microfinance Conference in Abuja, Nigeria, the governor of the Central Bank of Nigeria (CBN), Mr Mallam Sanusi Lamido Sanusi, announced that all microfinance bank CEOs would be required to pass a CBN administered exam in order to continue managing their banks. Continue reading

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MICROCAPITAL BRIEF: Liquidity Crunch Forces Nepalese Microfinance Institutions (MFIs) to Increase Lending Rates

According to a recent article in the Kathmandu Post, Nepalese microfinance institutions (MFIs) that used to borrow from commercial banks at a four percent interest rate now have to borrow at seven percent—a 75 percent increase—due to the liquidity crunch. Continue reading

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MICROCAPITAL EVENT: Mobile Money Transfer (MMT) Americas Conference and Expo, March 8 – March 11, 2010, Cancun, Mexico

Event Name: Mobile Money Transfer (MMT) Americas Conference and Expo

Event Date: March 8 – March 11, 2010

Event Location: Cancun, Mexico

Event Website: http://www.mobile-money-transfer.com/americas

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

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MICROCAPITAL BRIEF: MIX Releases MicroBanking Bulletin No. 19, Providing Insight Into the Impact of the Global Economic and Financial Slowdown on the Microfinance Industry

The Microfinance Information Exchange (MIX), a business information and data services provider for the global microfinance industry, recently released the latest issue of The Microbanking Bulletin, an industry journal of microfinance performance. Continue reading

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MICROCAPITAL BRIEF: Dhanlaxmi Bank Plans to Open 50 Customer Service Points (CSP) in Kerala, India, to Expand Microfinance Services

Dhanlaxmi Bank, an Indian bank in the state of Kerala, is expected to open 50 customer service points (CSP) in the near future to reach out to approximately 50,000 low-income individuals. Continue reading

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MICROCAPITAL BRIEF: Grameen Foundation Releases Version 1.4 of Mifos Open Source Microfinance Institution Management Software

Grameen Foundation recently released the latest version of Mifos, its open source software platform for microfinance institutions. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Grameen Foundation Releases Version 1.4 of Mifos Open Source Microfinance Institution Management Software Posted in Technology, Trends/Challenges

MICROCAPITAL BRIEF: Julia Kurney, Founding Partner of Senegal Ecovillage Microfinance, Launches Zidisha.org, a Nonprofit Organization that Reportedly Allows Peer-to-Peer Microcredit Lending

Julia Kurney recently launched Zidisha.org, a non-profit organization that reportedly allows for peer-to-peer (P2P) microcredit lending. Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Julia Kurney, Founding Partner of Senegal Ecovillage Microfinance, Launches Zidisha.org, a Nonprofit Organization that Reportedly Allows Peer-to-Peer Microcredit Lending Posted in Africa, Trends/Challenges