The governments of Kenya, Rwanda and Uganda, which established One Area Network Agreement (OANA) in January to improve cross-border telecommunications, are seeking to expand its scope to allow mobile money transfers among the countries.
Category: Regulation
MICROCAPITAL BRIEF: Papua New Guinea Commits to Digitizing Government Payments
The government of Papua New Guinea (PNG) recently committed to shifting all government payments, including government salaries and social protection payments, to electronic form, with the goal of increasing security, transparency, financial inclusion and convenience [1].
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Easing Regulations to Allow Microfinance Institutions (MFIs) to Loan up to $1,600 to Borrowers Earning up to $2,500
The Reserve Bank of India (RBI), the central banking authority of the country, recently announced that it raised the limit on the total of all loans disbursed by microfinance institutions (MFIs) to a single borrower from INR 50,000 (USD 790) to INR 100,000 (USD 1,600).
MICROCAPITAL BRIEF: After Suspension Due to Low Repayment Rates, Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Mandiri Resume Government’s $1.5b Kredit Usaha Rakyat (KUR) Microloan Program
Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) and Bank Mandiri, three state-owned banks in Indonesia, will resume efforts to distribute IDR 20 trillion (USD 1.5 billion) during 2015 via the microloan program Kredit Usaha Rakyat (KUR) [1].
MICROCAPITAL BRIEF: Kenya’s Metropol Acquires License to Operate Credit Bureau in Uganda
The Bank of Uganda, the central banking authority of the country, recently granted a license to Metropol Corporation Limited (MCL), a Kenya-based credit rating and debt management company, to provide credit reference services.
MICROCAPITAL BRIEF: Network of Microfinance in Liberia (NEMIL) to Focus on Capacity Building
Rev. Steve Gaye, who recently was elected chairman of the Network of Microfinance in Liberia (NEMIL), has announced that he will focus the organization’s efforts on capacity building.
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Grants Self-Regulatory Organization (SRO) Status to Indian Microfinance Network Sa-Dhan
Sa-Dhan, a microfinance network in India with 251 member organizations, reportedly has been granted status as a self-regulatory organization (SRO) by the Reserve Bank of India, the country’s central banking authority.
MICROCAPITAL BRIEF: Microfinance Institutions African Century Leasing (ACL) of Zimbabwe, Reefy of Egypt Acquire Banking Licenses; ACL to Accept Deposits
The Reserve Bank of Zimbabwe recently granted a banking license to African Century Leasing (ACL), making it the first microfinance institution in the country that may accept deposits.
MICROCAPITAL BRIEF: Bank of Ghana Raises Microfinance Institution Capital Requirement to $263k
During the next three months, the Bank of Ghana, the country’s central bank, reportedly will raise the minimum capital requirement for microfinance institutions (MFIs) to GHS 1 million (USD 263,000).
MICROCAPITAL BRIEF: Bangladeshi Government Takes Interim Control of Grameen Bank
The Grameen Bank, a microfinance institution in Bangladesh, is being run by government-appointed board members as of February 2015.
MICROCAPITAL BRIEF: Daraja Microfinance Latest to Be Licensed by Central Bank of Kenya
The Central Bank of Kenya (CBK) recently granted a license to Daraja Microfinance Bank Limited (Daraja MFB) to begin deposit-taking operations, making Daraja the tenth microfinance bank in Kenya [1].
MICROCAPITAL BRIEF: Colombian Government Creating Licensing System for Electronic Deposit-Taking Entities
The government of Colombia recently approved a law to regulate and license electronic deposit-taking entities. These financial institutions, designated Sociedades Especializadas en Depósitos y Pagos Electrónicos (Specialized Electronic Deposit and Payment Institutions), may be incorporated by individuals or legal entities, such as telecom operators or postal offices. With a minimum capital requirement of USD 3 million, these entities can allow users to save, make payments and receive money, primarily through correspondent agents [1] [2].
MICROCAPITAL BRIEF: Social Performance Task Force, Smart Campaign Launch Responsible Microfinance Facility (RMF) for Training, Technical Assistance in the Middle East, Africa
The Social Performance Task Force, a US-based nonprofit charged with addressing questions about measuring and managing social performance, in collaboration with the Smart Campaign, a client-protection initiative of US-based nonprofit Accion, recently launched the Responsible Microfinance Facility (RMF), a three-year initiative funded by the French government’s Agence Francaise de Developpement (AFD) to improve the capacity and performance of microfinance institutions in Africa and the Middle East.
MICROCAPITAL BRIEF: Fonds pour l’inclusion Financière en République Démocratique du Congo (FPM) Receives Authorization from Central Bank of the Congo to Issue Wholesale Financing to Lenders Serving Micro-, Small, Medium-Sized Enterprises (MSMEs)
Fonds pour l’inclusion Financière en République Démocratique du Congo (FPM) SA, a nonprofit organization based in the Democratic Republic of the Congo (DRC) that was formerly known as Fonds de Promotion de la Microfinance, recently received authorization to operate as a financial company from the Central Bank of the Congo, DRC’s central banking authority.
MICROCAPITAL BRIEF: Decree in Belarus Requires Microfinance Organizations to Register with National Bank Within 6 Months
The National Bank of the Republic of Belarus (NBRB), the central banking authority of the country, has announced that organizations providing microfinance services in the country have six months to register with the bank to comply with the guidelines set forth in “Decree No. 325,” a presidential order “on the raising and provision of loans, the operation of microfinance organizations” [1].
MICROCAPITAL BRIEF: India Completes Phase I of Jan-Dhan Initiative to Provide Banking Services to Every Household
Arun Jaitley, the Indian Finance Minister, reportedly announced that the government has completed Phase I of the Jan-Dhan initiative, a scheme created by Prime Minister Modi to give all Indians access to banking services, including credit, savings, insurance, direct benefits transfer and electronic payments.
MICROCAPITAL BRIEF: Egyptian Financial Supervisory Association Regulates Microfinance Companies, Setting $2m Capital Requirement
The Egyptian Financial Supervisory Association (EFSA), a governmental body that supervises and regulates the financial sector in the country, recently issued a resolution regulating the activities undertaken by microfinance companies.
MICROCAPITAL BRIEF: Microcredit Regulatory Authority (MRA) of Bangladesh Launches Lead Microfinance Institution System to Coordinate Poverty-reduction Programmes
The Microcredit Regulatory Authority (MRA), a Bangladeshi government body that oversees the operations of nongovernmental organization (NGO) microfinance institutions (MFIs), reportedly is planning the launch of a Lead Microfinance Institution System to coordinate government-funded poverty reduction programmes at the ground level. [1] The model replicates the Lead Bank System present in the country, where a lead bank oversees the arrangement of loan syndications. One goal of this new system is to reduce possible overlaps among international and domestic poverty-reduction programmes that are active in the country. MRA Director Sazzad Hossain also offered the following example of what a lead MFI would do: “Suppose, 200 people are eligible for credits in an upazila, but under the existing system 150 people are getting the credit facilities. The lead MFI will find out why the rest are not under MFI credit programme.”