The Central Bank of Nigeria (CBN) recently granted a microfinance banking license to Fortis Microfinance Bank (Fortis MFB), a privately owned microfinance institution in Nigeria [1].
Category: Regulation
MICROCAPITAL BRIEF: Asian Development Bank (ADB) to Finance a Loan Program of $400m to Promote Financial Inclusion in Indonesia
The Asian Development Bank (ADB), a Philippines-based multilateral development finance institution, has committed to loaning USD 400 million toward its Financial Market Development and Inclusion Program (FMDIP) for Indonesia.
MICROCAPITAL BRIEF: Microfinance Institutions Network (MFIN) of India Advises Members to Reduce Interest Rates
The Microfinance Institutions Network (MFIN), a trade organization composed of 47 Indian microlenders, has advised its members to reduce their interest rates voluntarily by “at least 25 basis points” [1] by the end of September 2015.
MICROCAPITAL BRIEF: Peru Enacts National Financial Inclusion Strategy
The government of Peru recently enacted a National Financial Inclusion Strategy (NFIS) after consultation with the World Bank Group (WBG), a multilateral development organization that aims to improve living standards in developing countries.
MICROCAPITAL BRIEF: Philippines’ Securities and Exchange Commission (SEC) to Establish Microfinance NGO Regulatory Council
The Philippine Senate has recently passed Senate Bill 2752, also called the Microfinance NGOs Act, which directs the Securities and Exchange Commission (SEC), an agency of the Philippine government regulating the securities market in an effort to promote economic efficiency, to establish the Microfinance Non-Governmental Organization (NGO) Regulatory Council. [1]
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Forms Committee to Promote Financial Inclusion
The Reserve Bank of India (RBI), the central banking authority of the country, recently established a 14-member committee with the objective of implementing a five-year action plan for financial inclusion.
MICROCAPITAL BRIEF: Indonesia to Disburse $2.2b under Microfinance Program Kredit Usaha Rakyat (KUR) to Encourage Growth of Micro-, Small and Medium-Sized Enterprises (MSMEs)
The Indonesian government intends to disburse IDR 30 trillion (USD 2.2 billion) in small business loans under its Kredit Usaha Rakyat (KUR) program, which is intended to provide credit to micro-, small and medium-sized enterprises (MSMEs) and cooperatives.
MICROCAPITAL BRIEF: Bank of Ghana Doubles Minimum Capital Requirement for Microfinance Institutions (MFIs) to $610k As of 2018
The Bank of Ghana (BoG), which serves as the country’s central bank and is mandated to license, regulate and supervise financial institutions, reportedly announced that it has revised the minimum capital requirement for microfinance institutions (MFIs) from GHS 1 million (approximately USD 305,000) to GHS 2 million (approximately USD 610,000).
MICROCAPITAL BRIEF: Pakistan’s Apna Obtains Nationwide Microfinance Banking License
The State Bank of Pakistan (SBP), the country’s central bank, recently issued a nationwide microfinance banking license to Apna Microfinance Bank (Apna MFB) thereby enhancing its status from that of a district-based bank. This license permits Apna MFB to expand its operations outside the city of Karachi, Pakistan, where it operates five branches.
MICROCAPITAL BRIEF: Insurance Regulatory Authority of Uganda (IRA) to Reduce Minimum Capital Requirement for Microinsurers to $30k, Increase Client Protection Measures
The Insurance Regulatory Authority of Uganda (IRA) recently urged insurance companies in the country to work with microfinance institutions (MFIs) to develop and promote microinsurance products.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considers $22m Credit to Belinvestbank of Belarus for On-Lending to Micro-, Small and Medium-sized Enterprises (MSMEs)
The European Bank for Reconstruction and Development (EBRD), a multilateral investment institution headquartered in London, is considering extending a credit line of EUR 20 million (USD 22 million) to Belinvestbank (BIB), a state-owned bank in Belarus.
MICROCAPITAL BRIEF: Bank of Ghana Rejects Appeal by Customers of DKM Diamond Micro-Finance Limited; President Intervenes
The Bank of Ghana (BoG), the country’s central bank, recently rejected an appeal by the customers of the Ghana-based savings and microfinance company DKM Diamond Micro-Finance Limited (DKM) who had requested their cash deposits and matured investments with DKM to be paid out. BoG rejected the appeal due to the investigation into DKM’s practices being pending. BoG argued that it had to establish whether the MFI had violated the Ghanaian banking act before it allowed access to funds held by DKM.
MICROCAPITAL BRIEF: World Economic Forum (WEF) Leaders Aim for Cooperation among Regulators for Financial Inclusion in Africa
During the World Economic Forum (WEF) in South Africa, business and political leaders from multiple African countries including Kenya, Nigeria, and South Africa among others, emphasized the need for collaboration among regulators in order to promote financial inclusion globally.
MICROCAPITAL BRIEF: India’s Bandhan Financial Services Receives Banking License Permitting it to Accept Deposits; Plans to Begin Banking Operations in August 2015
The Indian microfinance institution, Bandhan Financial Services, which received a provisional banking license from the Reserve Bank of India (RBI) in 2014, recently announced that it has received final approval from RBI that allows it to accept deposits. The organization intends to start offering banking services beginning August 23, 2015.
MICROFINANCE PUBLICATION ROUND-UP: Morocco’s Microfinance Market; Trends in Funding Financial Inclusion; Growth Projections in Islamic Microfinance
“Ending the Microfinance Crisis in Morocco: Acting early, acting right;” published by the International Finance Corporation in partnership with the Canadian Department of Foreign Affairs, Trade, and Development; the Danish International Development Agency; Japan; Switzerland’s State Secretariat for Economic Affairs; and UKaid; October 2014; available at http://www.ifc.org/wps/wcm/connect/5e1e5a0047850bdba0d4f5299ede9589/IFC+Morocco+MicroFinance+Crisis+report.English.pdf?MOD=AJPERES
Da Afghanistan Bank (DAB), International Development Association (IDA), International Finance Corporation (IFC), Harakat Implement Credit, Collateral Registry in Afghanistan
Da Afghanistan Bank (DAB), the central bank of Afghanistan, recently implemented a credit infrastructure modernization project involving the establishment of Collateral Registry (CR) and Public Credit Registry (PCR) systems, which enable automation of loan processing by tracking information about clients, outstanding loans and assets pledged to back those loans.
MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Launches National Financial Inclusion Strategy (NFIS) Aiming for Universal Financial Inclusion
The State Bank of Pakistan (SBP), the nation’s central banking authority, recently announced the introduction of the National Financial Inclusion Strategy (NFIS), which will attempt to bring about reforms that move Pakistan toward universal financial inclusion.
MICROCAPITAL EVENT: 5th Pacific Microfinance Week: Next Mile Financial Services in the Pacific, September 21-25, 2015, Honiara, Solomon Islands
Event Name: 5th Pacific Microfinance Week 2015: Next Mile Financial Services in the Pacific
Event Date: September 21-25, 2015
Event Location: Heritage Park Hotel, Honiara, Solomon Islands
Event Summary: Pacific Microfinance Week (PMW) 2015 is a series of workshops, field visits and formal conference sessions focusing on providers of financial services for poor people in the Pacific region. The topics that will be discussed include digital finance and delivery channels, women’s empowerment through access to finance, enhancing the potential of non-bank financial institutions, policy and regulation, innovations in products and services, developing measures of financial inclusion, how corporate governance structures can improve organizational performance, and a special session on financial inclusion in the Solomon Islands. The most recent PMW was held in 2013.