MICROCAPITAL BRIEF: Investment Company responsAbility Releases "Microfinance Market Outlook 2011"

responsAbility Social Investments AG, an investment company in Switzerland, recently released “Microfinance Market Outlook 2011,” a report based on surveys of representatives of microfinance institutions (MFIs), investors, rating agencies and consultancies. From these survey results, reponsAbility made predictions about the development of the microfinance industry during 2011, namely that the industry will expand and recover some stability after the recession that began in 2008. Other key expectations include improved portfolio quality and a path towards normalization; increased sustainable growth from enhanced corporate governance, risk management and product variability; and less demand from MFIs for refinancing funding from investors [1]. The report includes consideration of the recent trouble in the microfinance industry in India’s Andhra Pradesh state.

About responsAbility: Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company whose products aim to enable investors to earn a financial return while allowing people in developing countries and emerging markets to access markets, information and other services in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. According to calculations based on data on the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders. These include Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.

By Diana Baide, Research Assistant

[1] Press Release submitted to MicroCapital by responsAbility in December 2010

responsAbility. “Microfinance Market Outlook 2011: Back on the Growth Path”

http://www.responsability.com/domains/responsability_ch/data/free_docs/rA_MicrofinanceMarketOutlook2011_en.pdf

MicroCapital. “Payment Strike hits India’s Andhra Pradesh State As Local Governments Urge Microfinance B

orrowers Not to Repay” by John Howard-Smith, 9 November 2010

https://www.microcapital.org/microcapital-brief-payment-strike-hits-india%E2%80%99s-andhra-pradesh-state-as-local-governments-urge-microfinance-borrowers-not-to-repay/

MicroCapital. “India’s Microfinance Industry on Brink of ‘Collapse’ Due to Credit Freeze in State of Andhra Pradesh” by Diana Baide, 15 November 2010

https://www.microcapital.org/microcapital-brief-indias-microfinance-industry-on-brink-of-collapse-due-to-credit-freeze-in-state-of-andhra-pradesh/

MicroCapital. “Under Pressure from State Government of Andhra Pradesh, Indian Microfinance Institutions Agree to Cap Interest Rates at 24%” by Diana Baide, 16 November 2010

https://www.microcapital.org/microcapital-brief-under-pressure-from-state-government-of-andhra-pradesh-indian-microfinance-institutions-agree-to-cap-interest-rates-at-24/

MicroCapital. “responsAbility Social Investments of Switzerland Makes Debt Investments Totaling $6m in Microfinance Institution (MFI) ACBA-Credit Agricole Bank CJSC and ACBA Leasing of Armenia” by Diana Baide, 22 November 2010

https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-debt-investments-totaling-6m-in-microfinance-institution-mfi-acba-credit-agricole-bank-cjsc-and-acba-leasing-of-armenia/

MicroCapital’s Microfinance Universe profile: responsAbility

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

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