Vikram Akula, the founder of Indian for-profit microfinance institution (MFI) SKS Microfinance Limited, reportedly acknowledged that Dr Muhammad Yunus was “right” about the challenges of “bringing private capital into social enterprise.”
Category: Regulation
MICROFINANCE PUBLICATION ROUND-UP: Geographies of Need and Microfinance Providers in Nigeria, Role of Government in Financial Inclusion, Mobile Money Service and Poverty Reduction in Kenya
“Exploratory Analysis of Local Geographies of Need and the Proximity of Microfinance Service Providers in Nigeria;” Dr Adegbola A Ojo and Scott Gaul; published by Microfinance Information Exchange (MIX); January 2012; 14 pages; available at: http://www.themix.org/sites/default/files/MBB- Exploratory Analysis of Local Geographies of Need and the Proximity of Microfinance Service Providers in Nigeria_0.pdf
MICROCAPITAL BRIEF: Benefit Corporation Type Allows Companies to Balance Societal Benefit, Profits
Laws now exist in seven US states recognizing a form of organization called “benefit corporations” (B-corps), which aim to balance societal and financial benefit.
MICROCAPITAL BRIEF: Bangladeshi Microfinance Borrowers Earn $47m in Interest on Mandatory Savings; Microcredit Regulatory Authority to Boost Enforcement of Required Interest Payments by MFIs
According to data attributed to the Microcredit Regulatory Authority (MRA), an organization that supervises microfinance operations of Bangladeshi nongovernmental organizations, microfinance borrowers in Bangladesh earned BDT 3.8 billion (USD 46.5 million) in interest on their savings for the period from July to December in 2011.
MICROCAPITAL BRIEF: Microfinance and Microenterprise Enhancement Act of 2011 to Further USAID’s Financial Inclusion Concepts
The United States Senate recently introduced the Microfinance and Microenterprise Enhancement Act of 2011, which proposes that the United States Agency for International Development (USAID) focus its financial inclusion efforts on incorporating the use of technology and serving vulnerable groups, very poor people and women, [2].
MICROFINANCE PUBLICATION ROUND-UP: Social Cash Transfers and Financial Inclusion, Investment and Microfinance Repayment Crises, Cashless Funeral Microinsurance
“Social Cash Transfers and Financial Inclusion: Evidence from Four Countries;” by Chris Bold, David Porteous and Sarah Rotman; published by CGAP (Consultative Group to Assist the Poor); February 2012; 28 pages; available at: http://www.cgap.org/p/site/c/template.rc/1.9.56877/
MICROCAPITAL BRIEF: Microfinance Institution AccessBank of Azerbaijan Offers Vehicle Insurance
Azerbaijani microfinance institution AccessBank has announced that it will be offering insurance policies for vehicle owners.
MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Appoints Debt Recovery Agents to Seek Repayments Owed Microfinance Institutions in Liquidation
The Nigeria Deposit Insurance Corporation (NDIC), an agency of the federal government of Nigeria, has reportedly appointed debt recovery agents (DRAs) for microfinance banks (MFBs) in liquidation to recover “debts owed to the 103 closed MFBs nationwide.”
MICROCAPITAL BRIEF: Tanzania to Introduce Microfinance Act, Establish Credit Bureau, Offer Financial Education
The Tanzanian government has begun drafting a Microfinance Act that will provide a legal, regulatory and supervisory framework for microfinance operations, according to a statement attributed to Harry Ndambala, manager of the microfinance supervision department of the Bank of Tanzania, the central bank of the country.
MICROCAPITAL BRIEF: Multilateral Investment Fund (MIF) to Support Smart Campaign to Improve Client Protection in Latin American, Caribbean Microfinance Institutions
The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank, will be providing unspecified support to the Smart Campaign, a consumer protection initiative, in its work to assist Latin American and Caribbean microfinance institutions (MFIs) in implementing client protection practices in their daily operations.
MICROCAPITAL BRIEF: Swaziland’s Ministry of Finance Prepares Bill to Regulate Microfinance, Launches Rural Finance and Enterprise Development Program
Swaziland’s Ministry of Finance reportedly will present a National Credit Bill to “promote fair and non-discriminatory access to consumer credit and improve the standards of consumer information” and “curb unfair lending practices.”
MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Tightens CAMELS, Other Requirements for Banks Offering Agricultural Microfinance Loans in the Philippines
The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, recently released a circular amending the minimum requirements for banks offering micro-agri loans [1].
MICROCAPITAL BRIEF: Indian Bank Credit to Microfinance Institutions Shrank 21.9% in First 9 Months of 2011
The amount of credit outstanding from Indian banks to the microfinance industry fell from April to December of 2011.
MICROCAPITAL BRIEF: Dr Hans Dieter Seibel Calls for Liberalisation of Myanmar’s (Burma’s) Financial Sector; UK’s Department for International Development Commits $15m to Support Rural Microfinance
In an interview with the Myanmar Times newspaper, rural microfinance specialist Dr Hans Dieter Seibel discussed his views on Myanmar’s (Burma’s) financial sector and calls for a liberalized regulatory framework.
MICROCAPITAL BRIEF: Mexico, Indonesia, Haiti Use Tiered Savings Account Requirements to Promote Financial Inclusion
Mexico, Indonesia and Haiti are responding to the challenge of balancing financial access with security by creating tiered requirements for savings accounts.
MICROFINANCE PAPER WRAP-UP: Global Microscope on the Microfinance Business Environment 2011
By the Economist Intelligence Unit, funded by The Multilateral Investment Fund, Corporación Andina de Fomento and the International Finance Corporation, October 2011, 72 pages, available at: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=36453519.
This paper examines the microfinance business environments in 55 countries, comparing them across three categories: supporting institutional framework, political stability, and regulatory framework and practices. It is the fifth annual paper in the series, covering the 12-month period through June 2011. The research comprises data collected in 21 countries of Latin America and the Caribbean, 11 countries of Sub-Saharan Africa, seven of Eastern Europe and Central Asia, seven of East Asia, five of South Asia and four of the Middle East and North Africa.
MICROCAPITAL BRIEF: Indian Finance Ministry Clears Draft Microfinance Bill, Considers Engaging Post Office Banks to Promote Financial Inclusion
India’s finance ministry reportedly has cleared the draft of a microfinance bill following its public circulation for comments in July 2011 [1].
MICROFINANCE PUBLICATION ROUND-UP: Poverty Scorecard for Afghanistan, Implementing Microfinance Information Systems, Improving Client Value from Microinsurance
“A Simple Poverty Scorecard for Afghanistan” by Mark Schreiner; published by Microfinance Risk Management LLC; January 2012; 117 pages; available at http://www.microfinance.com/#Afghanistan