MICROCAPITAL BRIEF: European Investment Bank (EIB) Lends $9.8m to Kenya’s Faulu Microfinance Bank to Finance Micro-, Small, Medium-Sized Enterprises (MSMEs)

The European Investment Bank (EIB), the long-term lending institution of the European Union (EU), recently lent Faulu Microfinance Bank, a Kenya-based microfinance institution (MFI), KES 1 billion (USD 9.79 million) under EIB’s East African Community Microfinance Facility [1]. Continue reading

MICROCAPITAL BRIEF: Reserve Bank India (RBI) Eases Microfinance Interest Rate Norm to Allow Cheaper Loans to Members of Scheduled Castes (SC) Earning Less than $2.50 Per Day

The Reserve Bank India (RBI), the nation’s central banking authority, has eased the maximum allowance of a variance of 4 percent between minimum and maximum interest rates on loans by MFIs in order to encourage the provision of cheaper loans to those members of Scheduled Castes (SC), historically disadvantaged people in India, who earn less than double the international poverty line defined by the United Nations (UN) as USD 1.25. Continue reading

MICROCAPITAL BRIEF: C-Quadrat’s Vision Microfinance Funds Loan $9.2m to Microfinance Institutions (MFIs) in Cambodia, Congo, Ecuador, India, Kenya, Nicaragua, Peru

During October 2015, Austrian asset manager C-Quadrat Asset Management issued loans worth the equivalent of USD 9.2 million via its two Vision Microfinance funds to unspecified microfinance institutions (MFIs) in Cambodia, Congo, Ecuador, India, Kenya, Nicaragua and Peru. Continue reading

MICROFINANCE PUBLICATION ROUND-UP: Legislation for Client Protection; Consumer Satisfaction in India; Women’s Financial Inclusion Data

“Client Protection Principles: Model Law and Commentary for Financial Consumer Protection;” published by the Microfinance CEO Working Group; April 2015; 66 pages; available at: http://microfinanceceoworkinggroup.org/wp-content/uploads/2015/04/CPP-Model-Laws-April-2015.pdf

This publication offers guidelines for creating legislation to protect low-income consumers of financial services. Continue reading

MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Awards Small Finance Bank Licences to 10 Microfinance Institutions (MFIs)

The Reserve Bank of India (RBI), the central banking authority of the country, recently has given “in-principle approval”[1] of the requests for Small Finance Bank Licences of the following microfinance institutions (MFIs): Jaipur-based Au Financiers, Jalandhar-based Capital Local Area Bank, Ahmedabad-based Disha Microfin, Chennai-based Equitas, Chennai-based ESAF Microfinance and Investments, Bengaluru-based Janalakshmi Financial Services, Guwahati-based RGVN (North East) Microfinance, Chennai-based Suryoday, Bangalore-based Ujjivan and Varanasi-based Utkarsh. Continue reading

MICROCAPITAL BRIEF: European Commission (EC) Launches EaSI-MicPro, a New Online Information on Microcredit Providers

The European Commission (EC), the executive body of the European Union (EU), recently launched EaSI-MicPro, a new online platform where microcredit providers can present information about their operations. Continue reading

MICROCAPITAL BRIEF: Fidelity Information Services (FIS) Launches “Banking on Demand” Management Information System in India, Targeting Microfinance Institutions (MFIs), Other Small Financial Services Companies

Fidelity Information Services (FIS), a US-based banking and payment technology provider, has launched “Banking on Demand,”[1] a service that uses “shared technology infrastructure”[1] to allow financial services companies to manage their operations without establishing their own banking infrastructure. Continue reading

MICROCAPITAL BRIEF: European Commission, European Investment Fund (EIF) to Guarantee $261m through European Programme for Employment and Social Innovation (EaSI), Supporting 20,000 Microenterprises via Romania’s Nextebank, 5 Western European Microfinance Institutions (MFIs)

The European Commission, the European Union’s executive body; the European Investment Fund (EIF), an EU-affiliated provider of finance to organizations that lend to small and medium-sized enterprises (SMEs); and six European microfinance institutions (MFIs) recently signed guarantee agreements under the European Programme for Employment and Social Innovation (EaSI), an initiative that supports “the modernisation of employment and social policies,”[3] job mobility, microfinance, microenterprises and social inclusion in the European Union. Continue reading

MICROCAPITAL BRIEF: Asian Development Bank, Small Farmers Development Bank, Nepalese Government Commit $18m for Reconstruction after Earthquakes in Nepal, Including $7m for Microfinance

The Asian Development Bank (ADB), a multilateral development finance institution based in the Philippines; the Small Farmers Development Bank, a wholesale provider of credit to agricultural cooperatives and microfinance institutions (MFIs) in Nepal; and the Nepalese government reportedly approved a financial assistance package of USD 17.8 million for reconstruction, relief and preparedness for future disasters in Nepal following the earthquakes that hit the country in April and May 2015. Continue reading

MICROCAPITAL BRIEF: India’s Sohan Lal Commodity Management Raises $15m from Creation, Everstone for its Agricultural Lender, Kissandhan

Creation Investments Capital Management, which is based in the US city of Chicago, Illinois, recently informed MicroCapital that it and Everstone Capital, an investor with offices in India, Mauritius and Singapore, have invested a total of USD 15 million in equity in Indian agricultural logistics firm Sohan Lal Commodity Management. Continue reading

MICROCAPITAL BRIEF: Commercial Bank of Ceylon, Ceylinco Insurance, Bima Launch Disability, Accident Microinsurance in Sri Lanka

Two firms based in Sri Lanka, Commercial Bank of Ceylon and Ceylinco Insurance, and Bima, a Sweden-based microinsurance service provider, recently launched an insurance program to protect microborrowers against permanent disability and accidental death. Continue reading

MICROCAPITAL BRIEF: Cantilan Bank of the Philippines Wins $55k Giordano Dell’Amore Microfinance Best Practices Award for Value Chain Proposal

Cantilan Bank, a Philippine provider of microfinance and other financial services, recently won the “Microfinance Best Practices International Award” from Italy’s Giordano Dell’Amore Foundation for the bank’s “Pag-uma and Value Chain Financing” proposal, which includes a “gender-sensitive approach” to providing individual and group loans for small-scale farmers. Continue reading

SPECIAL REPORT: Anne Contreras and Christoph Pausch of e-MFP on European Microfinance Week, Sustainable Growth, Serving Clients in Zones Affected by Boko Haram

MicroCapital: Would you please discuss this year’s focus on sustainable development?

Anne Contreras: Given the recent adoption of the UN Sustainable Development Goals, this issue is particularly relevant. The plenary on “Sustainable Development Goals and financial inclusion” will address the topic directly. Breakout sessions will also cover related topics: How can we implement clean cooking options to decrease mortality and mitigate air pollution? How can practitioners bundle finance and training to serve farmers? What can networks do in these areas? Continue reading