Out of concern that the policy has hindered financial inclusion, the Insurance Regulatory and Development Authority (IRDA), India’s insurance regulator, will no longer require written confirmation from banks as proof of residence from those seeking to purchase microinsurance products.
Category: Regulation
MICROCAPITAL BRIEF: Zimbabwean Government’s Small Enterprises Development Corporation (SEDCO) Looking to Collect Microsavings to Bailout Itself
The Cabinet of Zimbabwe reportedly has approved a proposal by the Small Enterprises Development Corporation (SEDCO), a publicly funded business development agency, to set up a microfinance bank with the intent of recapitalizing the state enterprise by raising deposits from cooperatives and small and medium-sized enterprises (SMEs).
MICROCAPITAL BRIEF: Amid Mobile Money Fraud, Service Providers Deemed Uncooperative, Bank of Uganda Seeks to “Take Over” Industry
Uganda’s Criminal Intelligence and Investigations Directorate (CIID) reportedly has indicated that mobile money fraud comprises the largest number of cases lodged with its economic crimes unit.
MICROCAPITAL BRIEF: Nigeria’s Corporate Affairs Commission (CAC) Threatens to Shut Down Microfinance Banks That Fail to Meet International Financial Reporting Standards (IFRS) During 2013
Nigeria’s Corporate Affairs Commission, an independent regulatory body, reportedly has warned microfinance banks (MFBs) in the country that they risk being shut down in 2013 if they do not adhere to the International Financial Reporting Standards (IFRS), a set of standards meant to harmonize accounting practices globally.
MICROCAPITAL BRIEF: Bank of Ghana Shuts Down 7 Microfinance Companies For Failure to Obtain Licenses
Dr. Henri Kofi Wampah, governor of the Bank of Ghana (BoG), reportedly has announced the closure of seven microfinance companies for failing to obtain operating licenses from BoG, the country’s central bank.
MICROCAPITAL BRIEF: Kenya Bankers Association (KBA) Opens Membership to Microfinance Institutions (MFIs)
The 43-member Kenya Bankers Association (KBA) reportedly has revised its constitution to make membership available to deposit-taking microfinance institutions (MFIs).
MICROFINANCE EVENT: Opal Financial Group Public Funds Summit, January 8 – January 10, 2013, Scottsdale, Arizona, USA
Event Name: Opal Financial Group Public Funds Summit 2013
Event Date: January 8 – January 10, 2013
Event Venue: The Phoenician-Scottsdale, 6000 East Camelback Road, Scottsdale, Arizona, USA
MICROCAPITAL BRIEF: Small Industries Development Bank of India (SIDBI) Among Banks Requiring Third-Party Assessment of Codes of Conduct from Microfinance Institutions (MFIs) Seeking Wholesale Loans
A group of lenders headed by the Small Industries Development Bank of India (SIDBI), a state-owned bank, have made it compulsory for microfinance institutions (MFIs) in the country to undergo third-party assessments of their codes of conduct in order to receive loans.
MICROCAPITAL BRIEF: Moroccan Government Projects Microcredit Will Create 2 Million Jobs Over 10 Years, Extension of Microfinance Tax Exemption Proposed
The Moroccan government recently forecasted that microcredits will create two million permanent jobs over the next 10 years, a doubling of the previous forecast of one million jobs.
MICROCAPITAL BRIEF: After Reserve Bank of India Caps Microfinance Institution Interest Rates at 26%, Investors Eye Non-Banking Financial Companies
Microfinance investors reportedly are seeking to invest in India’s non-banking financial companies (NBFCs) after the Reserve Bank of India (RBI) established a new regulation framework in 2011 that included an interest rate cap of 26 percent on loans disbursed by microfinance institutions (MFIs).
MICROCAPITAL BRIEF: Reserve Bank of India Projected to Issue Banking Licenses to L&T Finance Holding, Shriram Group, Mahindra & Mahindra Financial Services
Antique Stock Broking Ltd., an India-based financial services conglomerate, reportedly has projected that L&T Finance Holding, Shriram Group and Mahindra & Mahindra Financial Services are the three non-banking financial companies (NBFCs) most likely to receive banking licenses shortly from the Reserve Bank of India (RBI).
MICROCAPITAL BRIEF: Kazakhstani Government Looking to Triple Microloan Volume by Boosting Microcredit Portfolio to $80m
At a recent meeting in Astana, Kazakhstan, the Minister of Labor and Social Protection of Population, Serik Abdenov, reportedly stated that his government aims to grow the cumulative microloan portfolio in the country to KZT 12 billion (USD 79.7 million) or more enabling the amount of microcredit loans to increase by three and a half times within the next year.
MICROCAPITAL BRIEF: European Union to Give Jordan $32m for Microfinance Over 3 Years
The Ministry of Planning and International Cooperation of Jordan, a governmental institution that aims to affect sustainable development, reportedly has stated that the European Union (EU) will provide funding in the amount of EUR 25 million (USD 32.5 million) to support Jordan’s 2012-2014 executive plan to establish a nationwide microfinance program.
MICROCAPITAL BRIEF: Reserve Bank of India: Islamic Banking Not Workable Under Current Law, Financial Literacy Needs Boost
At a recent event in Kochi, India, Reserve Bank of India (RBI) Governor Duvvuri Subbarao reportedly ruled out the implementation of Islamic banking in the country at this time due to legal issues that would require a new law in order to allow the practice.
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN): Telecommunications Company May Have Violated Mobile Banking Regulations
A large telecommunications company, which has not been identified, is reportedly under investigation by the Central Bank of Nigeria (CBN) because of its work with two Nigerian banks on establishing mobile banking services.
MICROCAPITAL BRIEF: Banks in Indonesia Claim Readiness for Branchless Banking, Pending Regulation Issuance
Banks across Indonesia have reportedly stated that their information technology systems will be ready to handle branchless banking by 2013 pending the issuance of authorizing regulation from Bank Indonesia (BI), the country’s central bank and financial regulator.
MICROCAPITAL BRIEF: West African Banks Asked to Lower Interest Rates by Central Bank of West African States (BCEAO in French)
At a recent conference held in Dakar, Senegal, a representative of the Central Bank of West African States (also known by the French acronym BCEAO) asked West African banks to decrease the interest rates they charge borrowers.
MICROCAPITAL BRIEF: Central Bank of Bangladesh Requires Banks to Open 50% New Branches in Rural Areas
The Bank of Bangladesh, the country’s central bank and financial services regulator, has introduced new guidelines regulating the opening of new branches and business centers by commercial banks.