MicroCapital

MICROCAPITAL BRIEF: Low Repayment Rates Threaten Ghana’s Governmental Microfinance and Small Loan Centre (MASLOC)

Makai McClintock — Tue, 21 May 2013 05:03:32 +0000

The Microfinance and Small Loans Center (MASLOC), a Ghanaian government-funded program established in 2004 to implement microfinance programs targeted at reducing poverty and creating jobs, reportedly has indicated that low loan repayment rates are threatening to collapse the program. Mr Kewsi Ahwoi, Ghana’s Minister of the Interior, while addressing members of the National Democratic Congress, reportedly announced that approximately 150 micro-borrowers have refused to repay their loans. According to Mr Ahwoi this will make it difficult for the government to sustain the program.

As of 2011, MASLOC’s annual microcredit disbursals were GHS 241.5 billion (USD 121 million).

By Makai McClintock, Research Associate

About Microfinance and Small Loans Centre (MASLOC)
MASLOC was introduced in Ghana in 2004 under former President Kufuor’s administration. MASLOC was created as part of the Ghana Poverty Reduction Strategy, a policy agenda for poverty reduction and economic growth laid out by the Ghanaian government and the World Bank. The scheme was launched to administer, coordinate and monitor microcredit schemes in the country with the goal of making sustainable financial services available to all individuals, co-operatives and microfinance institutions (MFIs) in the country. As of 2011, MASLOC’s annual microcredit disbursals were GHS 241.5 billion (USD 121 million).

Sources and Additional Resources

Ghana Business News, “Refund MASLOC Loans or Scheme Will Collapse – Minister,” http://www.ghanabusinessnews.com/2013/05/06/refund-masloc-loans-or-scheme-will-collapse-minister/

MASLOC Website, “About Us,”http://www.masloc.gov.gh/1/About-Medium-and-Small-Loans.html

MicroCapital, July 14, 2011, “Defaults, Questionable Disbursements at Microfinance and Small Loans Centre (MASLOC) Slow Microfinance in Ghana,” http://www.microcapital.org/microcapital-brief-defaults-questionable-disbursements-at-microfinance-and-small-loans-centre-masloc-slow-microfinance-in-ghana/

MicroCapital, November 16, 2010, “Microfinance and Small Loans Centre (MASLOC) to Disburse $24m to Cover All Regions of Ghana During 2011,” http://www.microcapital.org/microcapital-brief-microfinance-and-small-loans-centre-masloc-to-disburse-24m-to-cover-all-regions-of-ghana-during-2011/

MicroCapital, December 19, 2007, “’The Micro Finance and Small Loans Fund’ in Ghana Disburses USD 7.5m Loans in Three Months,” http://www.microcapital.org/microcapital-story-%E2%80%98the-micro-finance-and-small-loans-fund%E2%80%99-in-ghana-disburses-usd-75m-loans-in-three-months/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

MICROCAPITAL BRIEF: IFC to Loan $50m to BanBif of Peru to Support Small, Medium-Sized Enterprises (SMEs)

Jennifer Young — Tue, 21 May 2013 05:02:06 +0000

The International Finance Corporation (IFC), a member of the World Bank Group, recently announced that it would loan USD 50 million to Banco Interamericano de Finanzas (BanBif), a Peruvian commercial bank, in an effort to double the number of small and medium-sized enterprises (SMEs) served by the bank by 2017. BanBif has an SME loan portfolio of approximately USD 560 million that serves 32,000 SMEs in 15 regions of the country. [1]

As of 2011, the bank reported total assets of PEN 5.3 billion (USD 2.1 billion), a gross loan portfolio of PEN 3.4 billion (USD 1.3 billion), deposits of PEN 3.9 billion (USD 1.5 billion), return on assets (ROA) of 1.34 percent and return on equity (ROE) of 18.9 percent. The number of clients is not available.

As of 2012, IFC has 184 member countries, total assets of USD 75.8 billion, ROA of 1.8 percent and return on capital of 6.5 percent.

By Jennifer Young, Research Associate

About International Finance Corporation (IFC)
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC has 184 member countries, total assets of USD 75.8 billion, return on assets of 1.8 percent, return on capital of 6.5 percent and USD 15.5 billion mobilized to 576 projects.

About BanBif
BanBif (formerly known as Banco Interamericano de Finanzas) is a bank based in Peru. As of 2011, the bank reported total assets of PEN 5.3 billion (USD 2.1 billion), a gross loan portfolio of PEN 3.4 billion (USD 1.3 billion), deposits of PEN 3.9 billion (USD 1.5 billion), return on assets (ROA) of 1.34 percent and return on equity (ROE) of 18.9 percent. Information on the number of clients is not available.

Sources and Additional Resources

[1] International Finance Corporation Press Release, “IFC invests $50 million to Help Expand Access to Finance to Small and Medium Enterprises in Peru”
http://www.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/96CCBFD3CB72DD4285257B6B004CD842

MicroCapital Story, May 14, 2013, “MICROCAPITAL BRIEF: IFC, Canadian International Development Agency (CIDA), Atlantic Bank of Belize Extend Effort to Improve Access to Small, Medium-Sized Enterprises, Increase Portfolio to $35m by 2014,”
http://www.microcapital.org/microcapital-brief-ifc-canadian-international-development-agency-cida-atlantic-bank-of-belize-extend-effort-to-improve-access-to-small-medium-sized-enterprises-increase-portfolio-to-35m-by-201/

MicroCapital Story, January 2, 2013, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $5m to La Nacional of the Dominican Republic for Housing, Small and Medium-Sized Enterprise (SME) Lending,”
http://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-5m-to-la-nacional-of-the-dominican-republic-for-housing-small-and-medium-sized-enterprise-sme-lending/

MicroCapital Story, December 4, 2012, “MICROCAPITAL BRIEF: BanBif of Peru to Sell $400m in Bonds to Fund Microfinance Loans in 2013,”
http://www.microcapital.org/microcapital-brief-banbif-of-peru-to-sell-400m-in-bonds-to-fund-microfinance-loans-in-2013/

MicroCapital Story, November 17, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Mobilizes $40m to Support Peruvian Microfinance Institution Mibanco,”
http://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-mobilizes-40m-to-support-peruvian-microfinance-institution-mibanco/

MicroCapital Universe Profile: International Finance Corporation
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: BanBif (Banco Interamericano de Finanzas)
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BanBif+%28Banco+Interamericano+de+Finanzas%29

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $370k to Microfinance Institution Chamroeun of Cambodia

Jennifer Young — Mon, 20 May 2013 08:54:29 +0000

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based nonprofit that provides financial services to microfinance institutions, recently notified MicroCapital that it approved the local-currency loan equivalent to approximately USD 370,000 over three years to Chamroeun, a Cambodian microfinance institution. [1]

As of 2011, Chamroeun reported to the US-based Microfinance Information Exchange (MIX) total assets of USD 4.4 million, a gross loan portfolio (GLP) of USD 3.2 million, 27,990 active borrowers, deposits of USD 876,500 from 42,876 depositors, return on assets (ROA) of 2.41 percent and return on equity (ROE) of 8.89 percent.

For the same year, GCAMF reports reported total assets of EUR 51.1 million (USD 66.2 million) and 45 investment projects in 19 countries that support 30 microfinance institutions (MFIs), four social-business projects and one fund that covers foreign-exchange risk.

By Jennifer Young, Research Associate

About the Grameen Credit Agricole Microfinance Foundation (GCAMF)
The Grameen Credit Agricole Microfinance Foundation (GCAMF) was founded in Luxembourg in 2008 by Credit Agricole SA, a French retail bank, and Grameen Trust (GT), a nonprofit microfinance organization affiliated with Grameen Bank of Bangladesh. GCAMF offers financing products to microfinance institutions (MFIs), focusing on MFIs that prioritize rural development, transparency, consumer protection and serving women. As of December 31, 2011, GCAMF reports reported total assets of EUR 51.1 million (USD 66.2 million) and 45 investment projects in 19 countries that support 30 microfinance institutions (MFIs), four social-business projects and one fund that covers foreign-exchange risk.

About Chamroeun Microfinance
Chamroeun is a microfinance institution (MFI) that was established in Cambodia in 1995. The organization’s mission is to help low-income people in urban areas prepare for unexpected expenses by providing savings, loans and microinsurance. The MFI also helps micro- and small entrepreneurs by engaging them in skills trainings. As of 2011, Chamroeun reported to the US-based Microfinance Information Exchange (MIX) total assets of USD 4.4 million, a gross loan portfolio (GLP) of USD 3.2 million, 27,990 active borrowers, deposits of USD 876,500 from 42,876 depositors, return on assets (ROA) of 2.41 percent and return on equity (ROE) of 8.89 percent.

Sources and Additional Resources

[1] Information provided by the Grameen Credit Agricole Microfinance Foundation (GCAMF) to MicroCapital.

MicroCapital Story, March 15, 2013, “MICROCAPITAL BRIEF: Agence Francaise de Developpement (AFD) to Guarantee Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans, Largely in Sub-Saharan Africa,”
http://www.microcapital.org/microcapital-brief-agence-francaise-de-developpement-afd-to-guarantee-grameen-credit-agricole-microfinance-foundation-gcamf-loans-largely-in-sub-saharan-africa/

MicroCapital Story, March 5, 2013, “MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $1.3m to Microfinance Institution Mitra Bisnis Keluarga (MBK) of Indonesia,”
http://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-loans-1-3m-to-microfinance-institution-mitra-bisnis-keluarga-mbk-of-indonesia/

MicroCapital Story, March 5, 2013, “MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) to Loan $599k to Oxus Tajikistan,”
http://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-to-loan-599k-to-oxus-tajikistan/

MicroCapital Story, November 21, 2011, “MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation Lends $2m to Microfinance Institutions Hekima of Congo; Findev of Azerbaijan; Chamroeun, TPC of Cambodia,”
http://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-lends-2m-to-microfinance-institutions-hekima-of-congo-findev-of-azerbaijan-chamroeun-tpc-of-cambodia/

MicroCapital Story, January 3, 2011, “MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation Makes $1.8m Local-Currency Loan to Koperasi Mitra Dhuafa (Komida) of Indonesia and Thaneakea Phum Cambodia (TPC), Chamroeun Microfinance of Cambodia,”
http://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-makes-1-8m-local-currency-loan-to-koperasi-mitra-dhuafa-komida-of-indonesia-and-thaneakea-phum-cambodia-tpc-chamroeun-microfin/

MicroCapital Universe Profile: Grameen Credit Agricole Microfinance Foundation (GCAMF)
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Credit+Agricole+Microfinance+Foundation

MicroCapital Universe Profile: Chamroeun Microfinance
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CHAMROEUN+MICROFINANCE

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

MICROCAPITAL BRIEF: Eastern Caribbean Central Bank Promotes Entrepreneurship Through 20-week Startup Design Course, Supports “Small Business Credit Guarantee Scheme”

Makai McClintock — Mon, 20 May 2013 02:56:09 +0000

The Eastern Caribbean Central Bank (ECCB), the monetary authority of six Caribbean nations including Antigua and Barbuda, in partnership with the Antigua Barbuda Investment (ABI) Bank, a private bank founded in 1990, recently hosted a 20-week entrepreneurship course in the country of Antigua and Barbuda aimed at helping aspiring entrepreneurs to improve their presentation and business plan development skills. Three groups of entrepreneurs concluded the course by presenting their business plans to a panel of bankers who provided feedback on the plans. The bankers comprising this panel were drawn from the Antigua Commercial Bank, the Eastern Amalgamated Bank and the Caribbean Union Bank, which all participate in the Government of Antigua and Barbuda’s Small Business Credit Guarantee Scheme, which is administered by the government-owned Antigua and Barbuda Development Bank (ABDB). Through this scheme, ABDB provides guarantees of up to 80 percent of loans of up to XCD 50,000 (USD 18,000) dispersed by participating financial institutions to small businesses that have insufficient collateral to cover its borrowing.

The members of ECCB include Antigua and Barbuda, the Commonwealth of Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.

Financial information for ABDB is not publicly available.

By Makai McClintock, Research Associate

Sources and Additional Resources

Caribarena Antigua, “Bankers Provide Feedback,” http://www.caribarena.com/antigua/business/banking/103760-bankers-provide-feedback.html

MicroCapital: January 13, 2012, “MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases 2010 Latin America & the Caribbean Regional Snapshot,” http://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-releases-2010-latin-america-the-caribbean-regional-snapshot/

MicroCapital: May 6, 2011, “MICROCAPITAL BRIEF: Spanish Fund for Latin America and The Caribbean (SFLAC), International Finance Corporation (IFC) to Assist Salvadoran Microfinance Institution (MFI) Ahorro y Credito de RL in Developing Savings Product, Building Sustainable Business Plan”, http://www.microcapital.org/microcapital-brief-spanish-fund-for-latin-america-and-the-caribbean-sflac-international-finance-corporation-ifc-to-assist-salvadoran-microfinance-institution-mfi-ahorro-y-credito-amc-de-rl-in/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

MICROCAPITAL BRIEF: Land Bank of Philippines Announces Bayadload E-Payment Service for Mandatory Government Contributions

Makai McClintock — Sat, 18 May 2013 05:03:06 +0000

The Land Bank of the Philippines (LBP), a government bank specializing in serving farmers and fishermen, has announced that it will partner with Smart Hub, a subsidiary of Filipino telecom Smart Communications, to offer a new e-payment channel called “BayadLoad” to allow household workers or their employers to make mandatory government contributions using their mobile phones. This comes in the wake of the “Kasambahay” Law (Household Worker Law), which was passed in 2012 and requires employers of household workers to make monthly payments to the Home Development Mutual Fund (Pag-IBIG Fund), Philippine Health Insurance Corporation (PhilHealth) and the Social Security System (SSS).

According to LBP Chief Executive Officer Gilda Pico, the service is expected to reduce congestion in bank branches.

The BayadLoad service will be compatible with Smart, Talk’N Text and Sun phone service providers and will allow workers to make payments using short message service (SMS) text messages without being charged an SMS fee by their phone service provider.

The service is expected to be made commercially available in May 2013 pending final approval from the Bangko Sentral ng Pilipinas, the central bank of the Philippines.

By Makai McClintock, Research Associate

Sources and Additional Resources

FutureGov Article, “Philippine Gov’t Bank to Enable E-Payment for Household Workers,” http://www.futuregov.asia/articles/2013/may/06/philippine-government-bank-launch-e-payment-channe/?buffer_share=41c43&utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer%253A%252BJvowens%252Bon%252Btwitter

MicroCapital, July 5, 2012, “MICROCAPITAL BRIEF: Indonesia: Banks Introduce Rabu Microsavings Program at Indonesian Banking Expo (IBEX),” http://www.microcapital.org/microcapital-brief-indonesia-banks-introduce-rabu-microsavings-program-at-indonesian-banking-expo-ibex/

MicroCapital, May 7, 2012, “MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) May Broaden ‘Special’ Program for Distressed Rural Banks as 3rd Straight Quarterly Rise Brings Bad Loan Ration to 10%,” http://www.microcapital.org/microcapital-brief-bangko-sentral-ng-pilipinas-bsp-may-broaden-special-program-for-distressed-rural-banks-as-3rd-straight-quarterly-rise-brings-bad-loan-ration-to-10/

MicroCapital, February 21, 2012, “MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Tightens CAMELS, Other Requirements for Banks Offering Agricultural Microfinance Loans in the Philippinse,” http://www.microcapital.org/microcapital-brief-bangko-sentral-ng-pilipinas-bsp-tightens-camels-other-requirements-for-banks-offering-agricultural-microfinance-loans-in-the-philippines/

MicroCapital, November 3, 2010, “MICROCAPITAL EVENT: Mobile Money Transfer Asia Pacific Conference and Expo, Manila, Philippines, January 17-20, 2011”, http://www.microcapital.org/microcapital-event-mobile-money-transfer-asia-pacific-conference-and-expo-manila-philippines-january-17-20-2011/

MicroCapital, October 6, 2009, “MICROCAPITAL EVENT: Mobile Money Transfer (MMT) APAC Conference & Expo, December 8-9, 2009, Manila, Philippines, Sponsored by Obopay”, http://www.microcapital.org/microcapital-event-mobile-money-transfer-mmt-apac-conference-expo-december-8-9-2009-manila-philippines-sponsored-by-obopay/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

MICROCAPITAL BRIEF: Oxigen of India Unveils OxiCash Money Transfer Service

Makai McClintock — Fri, 17 May 2013 10:03:34 +0000

Oxigen, an India-based payment solutions provider, has announced a new mobile money transfer service called OxiCash, which is intended to provide poor people with a “mobile wallet” for receiving funds and transferring money between bank accounts. This reportedly is the first such product to be approved by the Reserve Bank of India (RBI), the country’s central banking authority. The OxiCash money transfer service will be available both online and through mobile phones. “Mobile wallets” can be created through a short message service (SMS, also known as text messaging) exchange with OxiCash and funds can be deposited and withdrawn at approximately 100,000 Oxigen retail sites. The service can be accessed from all mobile phones via SMS, and users of Android smart phones can also use a customized OxiCash app.

Financial information on Oxigen is not publicly available.

By Makai McClintock, Research Associate

About Oxigen
Oxigen, founded in India in 2004, is a bill-payment, ticketing and prepaid-recharge services company. Oxigen provides recharge services for mobile phones and televisions, conference calling services, calling cards, telecommunications and utility bill payment services, travel ticketing, entertainment recharge, hotel bookings, mobile media and digital entertainment, mainly through point of sale terminals, computers, handsets and text messages (SMS). No official financial information on Oxigen is available.

About Reserve Bank of India (RBI):
Established in 1935, the Reserve Bank of India (RBI) undertakes consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies (NFBCs). The current focus of RBI is to supervise financial institutions, consolidate accounting standards, resolve legal issues in cases of banking fraud, monitor non-performing assets and supervise the rating model for the banking sector. In 1979, the National Bank for Agriculture and Rural Development (NABARD) was formed at the behest of RBI to provide regulatory oversight to regional rural banks (RRBs) and to promote the development of agricultural lenders: tasks that had been the responsibility of RBI. While non-banking financial companies such as for-profit microfinance institutions operate under RBI regulations, the responsibility for inspecting agricultural lenders, RRBs, state cooperative banks, district central cooperative banks and state cooperative agricultural and rural development banks was transferred to NABARD. RBI maintains these responsibilities for for-profit MFIs. Although RBI was originally the parent organization of NABARD and until October 2010 held a 72.5 percent stake in the outfit, RBI owns a one-percent stake in NABARD as of 2011.

Sources and Additional Resources

MobilePaymentsToday Article, “OxiCash Money Transfer Launches as India’s 1^st RBI-Approved Mobile Wallet for Unbanked,” http://www.mobilepaymentstoday.com/article/212817/OxiCash-Money-Transfer-launches-as-India-s-1st-RBI-approved-mobile-wallet-for-unbanked

MicroCapital: “MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Releases Regulations Governing New Bank Licenses,” March 11, 2013.
http://www.microcapital.org/microcapital-brief-reserve-bank-of-india-rbi-releases-regulations-governing-new-bank-licenses/

MicroCapital: “MICROFINANCE PAPER WRAP-UP: “Map of Microfinance Distribution in India” by Amulya Krishna Champatiray, Parul Agarwal and Santadarshan Sadhu; published by the Centre for Micro Finance (CMF),” January 29, 2013.
http://www.microcapital.org/microfinance-paper-wrap-up-map-of-microfinance-distribution-in-india-by-amulya-krishna-champatiray-parul-agarwal-and-santadarshan-sadhu-published-by-the-centre-for-micro-finance/

MicroCapital: “MICROCAPITAL BRIEF: First Phase of India’s 2011 Census: 40% of Households Do Not Have Access to Banking Services, 5% of Villages Have Banks,” April 9, 2012.
http://www.microcapital.org/microcapital-brief-first-phase-of-indias-2011-census-40-of-households-do-not-have-access-to-banking-services-5-of-villages-have-banks/

MicroCapital: “MICROCAPITAL BRIEF: Unique Identification Authority of India (UIDAI) Task Force Recommends Micro-ATMs to Improve Financial Inclusion,” March 19, 2012.
http://www.microcapital.org/microcapital-brief-unique-identification-authority-of-india-uidai-task-force-recommends-micro-atms-to-improve-financial-inclusion/

MicroCapital: “MICROCAPITAL BRIEF: Reserve Bank of India to Issue Guidelines For Interoperability Among Business Correspondents ‘Shortly,” February 14, 2012.
http://www.microcapital.org/microcapital-brief-reserve-bank-of-india-to-issue-guidelines-for-interoperability-among-business-correspondents-shortly/

MicroCapital: “MICROCAPITAL BRIEF: Indian Finance Ministry Clears Draft Microfinance Bill, Considers Engaging Post Office Banks to Promote Financial Inclusion,” February 8, 2012.
http://www.microcapital.org/microcapital-brief-indian-finance-ministry-clears-draft-microfinance-bill-considers-engaging-post-office-banks-to-promote-financial-inclusion/

MicroCapital: “MICROCAPITAL BRIEF: Indian Government Publishes Draft of Microfinance Institutions Bill, Would Make Reserve Bank of India (RBI) Sole Regulator, Establish Microfinance Development Council, Microfinance Development Fund,” August 15, 2011.
http://www.microcapital.org/microcapital-brief-indian-government-publishes-draft-of-microfinance-institutions-bill-would-make-reserve-bank-of-india-rbi-sole-regulator-establish-microfinance-development-council-microfinance/

MicroCapital: “MICROCAPITAL BRIEF: State Bank of India Teams Up with Oxigen Pvt Ltd and Sahyog Microfinance Foundation to Offer Kiosk-based Banking Model, ” August 5, 2010. http://www.microcapital.org/microcapital-brief-state-bank-of-india-teams-up-with-oxigen-pvt-ltd-and-sahyog-microfinance-foundation-to-offer-kiosk-based-banking-model-2/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

MICROCAPITAL EVENT: Trico Charitable Foundation to Host 2013 Social Enterprise World Forum, October 2-4, 2013, Calgary, Alberta, Canada

Jennifer Young — Fri, 17 May 2013 09:20:50 +0000

Event Name: 2013 Social Enterprise World Forum (SEWF)

Event Date: October 2-4, 2013

Event Location: Telus Convention Centre, Calgary, Alberta, Canada

Cost: Event registration costs CAD 595 (USD 584) before July 25, 2013, or CAD 695 (USD 682) after this date. Additional pricing options are available for opening ceremony, rodeo and receptions.

Event Summary: SEWF 2013 focuses on the challenges faced by social enterprises such as nonprofits, cooperatives and for-profit businesses intended to fulfill social missions. Event sessions will cover the following topics: social finance and impact investing, indigenous social enterprise, skill building, research and public policy, cross-sector collaboration and social innovation.

Background on Organizers: SEWF will be hosted by the Trico Charitable Foundation, a Canadian nonprofit that aims to promote social capacity building amongst social enterprises in Canada. As of 2013, the Trico Charitable Foundation has donated approximately CAD 2 million (USD 1.95 million) to various social enterprises in the country.

Trico is partnering on the event with the following Canadian NGOs: Social Enterprise Council of Canada, an alliance of 4,000 social enterprises; the Canadian Community Economic Development Network, a nonprofit organization; and the MaRS (Medical and Related Sciences) Discovery District, a charitable organization whose affiliates include Centre for Impact Investing, Social Innovation Generation and the Social Finance Forum.

Event Website: http://www.socialenterpriseworldforum.org/

For additional information, you may contact Daniel Overall, director of collaboration and innovation at Trico, via email at daniel.overall[at]tricofoundation.ca or by telephone at +1 403 228 6756.

By Jennifer Young, Research Associate

Sources and Additional Resources

Social Enterprise World Forum Press Release, “Registration for the 2013 Social Enterprise World Forum is Now Open!,” http://www.socialenterpriseworldforum.org/blog/2013/05/01/registration-for-the-2013-social-enterprise-world-forum-is-now-open/

Social Enterprise World Forum Website: http://www.socialenterpriseworldforum.org/

MicroCapital Story, March 26, 2013, “MICROCAPITAL BRIEF: Trico Accepting Applications for 2013 Social Enterprise Awards worth $78k,” http://www.microcapital.org/microcapital-brief-trico-accepting-applications-for-2013-social-enterprise-awards-worth-78k/

MicroCapital Story, April 16, 2013, “MICROCAPITAL BRIEF: Applications Open for Indian ‘Social Entrepreneur of the Year Award 2013’,”
http://www.microcapital.org/microcapital-brief-trico-accepting-applications-for-2013-social-enterprise-awards-worth-78k/

MicroCapital Story, September 28, 2012, “MICROFINANCE EVENT: Fifth Annual Microcredit Conference, Calgary, Canada, October 13, 2012,”
http://www.microcapital.org/microfinance-event-fifth-annual-microcredit-conference-calgary-canada-october-13-2012/

MicroCapital Story, September 25, 2012, “MICROFINANCE EVENT: Columbia Business School to Organize Conference on Social Enterprise, New York City, October 5, 2012,”
http://www.microcapital.org/microfinance-event-columbia-business-school-to-organize-conference-on-social-enterprise-new-york-city-october-5-2012/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

MICROCAPITAL BRIEF: Bank of Ghana Grants Licenses to 171 Financial Institutions as 116 Fraud Cases Involving Unlicensed Institutions are Pending

Makai McClintock — Fri, 17 May 2013 05:03:38 +0000

Dr Yaw Gyima-Larbi, the head of microfinance and banking supervision at the Bank of Ghana (BoG), reportedly has announced that the central bank has granted final operating licenses to 171 financial institutions. These include 143 microfinance companies which make small loans to entrepreneurs for business ventures; 25 money lenders, which make short-term loans for any purpose; and three financial non-governmental organizations (NGOs).

Dr Gyima-Larbi also cautioned Ghanaians to be wary of institutions that are not licensed and accredited in order to avoid fraud and manipulation. He noted that approximately 116 cases of alleged financial malpractice by unlicensed MFIs are currently pending.

BoG began requiring MFIs to be licensed in 2011 in an effort to protect consumers against fraud by requiring MFIs to submit periodic financial returns, receive prior approval from BoG before introducing new products and comply with various limits on deposits and loans.

By Makai McClintock, Research Associate

About the Bank of Ghana (BoG)
The Bank of Ghana has regulatory and supervisory authority over banking and financial institutions in Ghana, including rural and community banks, savings and loan companies, credit unions and cooperatives. The Bank of Ghana is to conduct annual on-site audits of these institutions, however nonprofit organizations in Ghana are not regulated by any government agency. As of December 2011, BoG reported total assets of GHS 12.4 billion (USD 6.6 billion).

Sources and Additional Resources

MyJoyOnline Business Article, “BOG Gives License to 171 Financial Institutions,” http://business.myjoyonline.com/pages/news/201305/105368.php

MicroCapital, 26 November 2012: “MICROCAPITAL BRIEF: Bank of Ghana Warns of False Advertising bi Microfinance Institutions Medlorn Microfinance, African Guarantee Trust, AbbeyCash Microfinance, Swift Financial Services”, http://www.microcapital.org/microcapital-brief-bank-of-ghana-warns-of-false-advertising-by-microfinance-institutions-medlorm-microfinance-african-guarantee-trust-abbeycash-microfinance-swift-financial-services/#more-21208

MicroCapital, 15 November 2012: “MICROCAPITAL BRIEF: Bank of Ghana Grants Final License to 90 Financial Institutions”, http://www.microcapital.org/microcapital-brief-bank-of-ghana-grants-final-license-to-90-financial-institutions/

MicroCapital, 13 September 2012: “MICROCAPITAL BRIEF: ProCredit Ghana Sounds Alarm on Multiple Lending, Calls for Tighter Entry Requirements for Microfinance Institutions”, http://www.microcapital.org/microcapital-brief-procredit-ghana-sounds-alarm-on-multiple-lending-calls-for-tighter-entry-requirements-for-microfinance-institutions-mfis/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

MICROCAPITAL BRIEF: Telenor, Societe Generale to Purchase Serbian Unit of KBC Banka

Brian LeBlanc — Fri, 17 May 2013 03:32:35 +0000

Telenor Group, a telecommunications company based in Norway, and Societe Generale, a France-based financial institution, have agreed to purchase KBC Banka, the Serbian unit of KBC Group, a Belgium-based financial institution, for an undisclosed price. Telenor reportedly will be acquiring the banking license while Societe Generale WILL acquire KBC Banka’s branch network. KBC Group put its Serbian unit up for sale to comply with a 2009 restructuring deal whereby the European Commission, the legislative body of the EU, provided KBC Group with EUR 7 billion (USD 9.21 billion) in aid.

As of 2013, Telenor Group provides mobile services in 12 countries in Europe and Asia and serves approximately 148 million subscribers. Its joint ventures include microinsurance and microcredit in countries including Bangladesh and Pakistan. For the year 2011, Telenor Group reported total assets of NOK 166 billion (USD 29 billion). As of year-end 2012, Societe Generale has operations in 85 countries and reported 1.65 trillion in total assets.

By Brian LeBlanc, Research Associate

About Telenor Group

Founded in 1855, Telenor Group is a telecommunications company based in Norway. As of 2013, Telenor Group provides mobile services in 12 countries and serves approximately 148 million subscribers. For the year 2011, Telenor Group reported total assets of NOK 166 billion (USD 29 billion).

About Societe Generale

Established in 1864, Societe Generale is a French financial institution specializing in retail banking, corporate and investment banking and investment management and services. As of year-end 2012, Societe Generale has operations in 85 countries and reported USD 1.65 trillion in total assets.

Sources and Additional Information:

KBC Banka press release, http://www.kbcbanka.rs/documents/Press%20release,%20KBC%20Banka.pdf

MicroCapital article, May 7, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Opes $112m in Credit Lines to Societe Generale Expressbank, Sogelease Bulgaria for On-Lending, Leasing to Small, Medium-Sized Enterprises,” http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-opens-112m-in-credit-lines-to-societe-generale-expressbank-sogelease-bulgaria-for-on-lending-leasing-to-small-medium-siz/

MicroCapital article, March 14, 2013, “MICROCAPITAL BRIEF: Norway’s Telenor Group Expresses Concern over Claim of Bangladeshi Government to Grameen Business,” http://www.microcapital.org/microcapital-brief-norways-telenor-group-expresses-concern-over-claim-of-bangladeshi-government-to-grameen-business/

MicroCapital article, January 23, 2013, “MCROCAPITAL BRIEF: Telenor Participates in Launch of MicroEnsure Asia, Opportunity International Sells Stakes in MicroEnsure to International Finance Corporation (IFC), Omidyar Network,” http://www.microcapital.org/microcapital-brief-telenor-participates-in-launch-of-microensure-asia-opportunity-international-sells-stakes-in-microensure-to-international-finance-corporation-ifc-omidyar-network/

MicroCapital article, March 27, 2012, “MICROCAPITAL BRIEF: Telenor’s Easypaisa, Adamjee Life Insurance Partner to Launch Free Life Microinsurance in Pakistan,” http://www.microcapital.org/microcapital-brief-telenors-easypaisa-adamjee-life-insurance-partner-to-launch-free-life-microinsurance-in-pakistan/

MicroCapital article, November 15, 2010, “MICROCAPITAL BRIEF: Grameen Credit Agricole, Grameen-Jameel Pan- Arab Microfinance Guarantee $6, National Societe Generale Bank Loan to The Lead Foundation Egypt,” http://www.microcapital.org/microcapital-brief-grameen-credit-agricole-grameen-jameel-pan-arab-microfinance-guarantee-6m-national-societe-generale-bank-loan-to-the-lead-foundation-egypt/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/

MICROFINANCE PUBLICATION ROUND-UP: Remittances to Latin America and the Caribbean, Savings Groups Leading to Advocacy, Microinsurance in the Philippines

Samuel Allmendinger — Thu, 16 May 2013 14:25:25 +0000

“Remittances to Latin America and the Caribbean in 2012: Differing Behavior Across Subregions;” by Maria Luisa Hayem; published by the Multilateral Investment Fund (MIF); 2013; 27 pages; available at http://www5.iadb.org/mif/HOME/Knowledge/tabid/426/idPublication/78709/language/en-US/Default.aspx

This report from the US-based Multilateral Investment Fund provides an analysis of remittances received across national borders by people in Latin America and the Caribbean (LAC). The report highlights that “rising unemployment in traditional remittance-sending countries such as the United States, Spain, and Japan, along with the resulting reduction in income of the LAC migrants living in those countries, led to an unprecedented drop in remittances to the region,” from USD 64.9 billion in 2008 to USD 56.5 billion in 2009. Flows began to stabilize between 2010 and 2011 as remittances to Central and South America grew by 7 percent and 4 percent, respectively. Ms. Hayem also notes that because local currencies of countries in LAC lost value against the United States dollar by an average of 3.1 percent in 2012, the purchasing power of remittances received in LAC fell. But data from 2012 show nominal growth, with the total value of remittances received by LAC countries measured at USD 61.3 billion. The author argues that “it is important to continue with ongoing efforts at both the international and national levels, in order to improve understanding of this phenomenon, reduce the costs of sending money, and support initiatives that allow families to accumulate assets through savings and also leverage these resources for productive investments.”

“Savings Groups at the Frontier;” edited by Jeffrey Ashe and Candace Nelson; published by Practical Action Publishing Limited; 2013; available for purchase at http://developmentbookshop.com/savings-groups-at-the-frontier-pb.html

This book presents arguments that savings groups, which allow members to save together, lend to each other and share the profits, can help mitigate some of the worst effects of poverty, as they are simple, scalable, low-cost, robust and self-replicating: “Savings groups have been the starting point for increased financial capability, community development efforts, linkages with formal finance, and new opportunities for the traditionally marginalized.” In an “increasingly resource-constrained world,” the authors argue that savings groups must expand and involve new partners; “reduce costs without sacrificing the overall objective of promulgating autonomous, quality financial service providers;” and explore the use of technology to manage group funds, link groups to financial institutions and lower the costs of training and support. The authors emphasize that “empowered groups are already starting to demand services from local government,” and that this bottom-up advocacy is expected to expand as savings groups proliferate.

“Assessment of Microinsurance as Emerging Microfinance Service for the Poor: The Case of the Philippines;” published by Asian Development Bank (ADB); 2013; 24 pages; available at http://www.adb.org/sites/default/files/pub/2013/assessment-microinsurance-service-for-poor.pdf

With approximately 2,000 microfinance institutions (MFIs) and a “regulatory environment that encourages banks to engage in microfinance,” the authors deem the Philippines “one of the countries in Asia with a relatively developed microfinance industry.” But with 23.1 million people in poverty, the gains resulting from access to microcredit are often eroded due to risks such as illness, injury and property loss. In 2009, the Department of Finance-Credit Council and the Insurance Commission of the Philippines, with technical assistance from ADB, formulated the National Strategy for Microinsurance, which was intended to establish an “appropriate policy and regulatory environment for the safe and sound provision of microinsurance by the private sector;” increase private sector participation in the provision of microinsurance; and institutionalize financial literacy in order to “highlight the importance of microinsurance, the applicable rules and regulations, the duties and responsibilities of the providers, and the rights of the insured.” Before 2008, there were 6 licensed microinsurance mutual benefit associations (MBAs), “very few commercial insurance companies with microinsurance,” and 3.1 million individuals covered by microinsurance in the Philippines. But as of July 2012, there are 17 licensed microinsurance MBAs, 28 commercial insurance companies selling microinsurance products, 7.8 million insured Filipinos and 116 licensed microinsurance agents.

By Sam Allmendinger, Research Associate

Sources and Additional Resources:

“Remittances to Latin America and the Caribbean in 2012: Differing Behavior Across Subregions,” http://www5.iadb.org/mif/HOME/Knowledge/tabid/426/idPublication/78709/language/en-US/Default.aspx

“Savings Groups at the Frontier,”
http://developmentbookshop.com/savings-groups-at-the-frontier-pb.html

“Assessment of Microinsurance as Emerging Microfinance Service for the Poor: The Case of the Philippines,”
http://www.adb.org/sites/default/files/pub/2013/assessment-microinsurance-service-for-poor.pdf

MicroCapital Universe Profile: Multilateral Investment Fund,
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Multilateral+Investment+Fund+%28MIF%29

MicroCapital Universe Profile: Asian Development Bank (ADB),
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asian+Development+Bank+%28ADB%29

MicroCapital. April 4, 2013, “MICROCAPITAL BRIEF: MicroEnsure to Retail “Triple 10” Microinsurance in the Philippines,” http://www.microcapital.org/microcapital-brief-microensure-to-retail-triple-10-microinsurance-in-the-philippines/

MicroCapital. April 7, 2013, “MICROCAPITAL BRIEF: NGOs, Government Unite In Effort to Increase Savings Group Membership to 50m Worldwide by 2020,” http://www.microcapital.org/microcapital-brief-ngos-government-unite-in-effort-to-increase-savings-group-membership-to-50m-worldwide-by-2020/

MicroCapital. April 9, 2013, “MICROCAPITAL BRIEF: MoneyGram, Globe Telecom to Offer Remittances at G-Xchange Outlets in the Philippines,” http://www.microcapital.org/microcapital-brief-moneygram-globe-telecom-to-offer-remittances-at-g-xchange-outlets-in-the-philippines/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/