The World Microfinance Forum Geneva recently hosted a debate on issues related to corporate governance and its importance in managing crises in microfinance.
Category: Regulation
MICROCAPITAL BRIEF: Intellecap Publishes White Paper Analyzing Events Leading Up to Andhra Pradesh Microfinance Lending Crisis and State, Media Responses to the Crisis
Intellecap, a social-sector advisory firm with offices in India and the US, has released a white paper analyzing the events leading up to the ongoing microfinance lending crisis in Andhra Pradesh, a state on the southeastern coast of India.
MICROCAPITAL BRIEF: The World Council of Credit Unions (WOCCU) and Federacion Nacional de Cooperativas de Ahorro y Credito (FENACOAC) of Guatemala Partner to Launch Savings Guarantee Fund
The World Council of Credit Unions (WOCCU), a US-based global trade association for credit unions, and the Federacion Nacional de Cooperativas de Ahorro y Credito (FENACOAC), an association of credit unions and cooperatives in Guatemala, have partnered to launch Mi Cooperativa (MICOOPE) Savings Guarantee Fund, a private deposit insurance institution aiming to serve FENACOAC holders of savings and share accounts in Guatemala.
MICROCAPITAL BRIEF: The International Finance Corporation (IFC) Publishes “Doing Business 2011: Making A Difference for Entrepreneurs,” Analysis of Business Regulation Worldwide
The International Finance Corporation, a World Bank Group member created to support private sector development, recently released the annual report “Doing Business 2011: Making A Difference for Entrepreneurs,” which examines the impact of regulations that affect business activity.
MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Increases Minimum Capital Requirement for Microfinance Banks
The State Bank of Pakistan (SBP) has increased the minimum capital requirements for microfinance banks in Pakistan in an effort to ensure that microfinance banks have adequate financial resources to remain sound over the long term.
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Grants Transparency Certificates to Microfinance Investment Vehicles (MIVs) That Adhere to Environmental, Social and Governance (ESG) Standards
CGAP (Consultative Group to Assist the Poor), a policy and research center dedicated to enhancing financial access for the world’s poor, has announced its granting of Transparency Certificates to several microfinance investment vehicles (MIVs) that are in compliance with its environmental, social and governance (ESG) guidelines for MIVs.
MICROCAPITAL BRIEF: Microfinance Dominates Shariah Lending in Indonesia, Commercial Banks Take Notice
The market for Shariah loans, those that are in compliance with Islamic law, has reportedly been dominated by microloans, prompting several of Indonesia’s commercial banks to focus on offering the small loans in underserved areas.
MICROCAPITAL BRIEF: Indian State of Karnataka to Start State-run Microfinance Institution
The government of Karnataka, a state in India, recently announced plans to start a state-run microfinance institution (MFI) with an investment of INR 5 billion (approximately USD 110 million), reportedly making it the second state in India to run an MFI, the other being Andhra Pradesh.
MICROCAPITAL BRIEF: Policy Studies Organization (PSO) Releases “Microfinance, Commercialization and Ethics” by Reinhard Schmidt of Johann Wolfgang Goethe-Universitat Frankfurt am Main
Poverty & Public Policy, a journal published by the Policy Studies Organization (PSO), a US-based policy think tank, has announced the release of a paper titled, “Microfinance, Commercialization and Ethics” by Reinhard Schmidt of Germany’s Johann Wolfgang Goethe-Universitat Frankfurt am Main.
MICROCAPITAL BRIEF: Haitian Microfinance Industry Still Struggling in Wake of Earthquake, Increased Regulation on the Horizon
Ten months after the major earthquake that rattled Haiti in January 2010, microfinance institutions (MFIs) and banks still struggle to regain clients, manage late payments and deal with increasing loan defaults. New industry regulation is also expected after requests to the government from MFIs and banks that are concerned that their clients’ money is not well-protected in case of financial institution default.
MICROCAPITAL BRIEF: Bangladesh Microcredit Regulatory Authority (MRA) to Restrict Fees, Cap Microloan Interest Rates at 27%, Discourage Flat Interest Rates
Bangladesh’s Microcredit Regulatory Authority (MRA) has enacted a new regulation capping microfinance institution (MFI) loan rates at 27 percent per year as of July 2011.
MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Aims to Ensure Sustainable Development of Microfinance Industry
The State Bank of Pakistan (SBP), the central bank of the country, recently announced a strategic plan to promote the soundness of the microfinance industry.
MICROFINANCE PAPER WRAP-UP: African Financial Systems: A Review by Franklin Allen, Isaac Otchere and Lemma Senbet, Published by The Wharton Financial Institutions Center
by Franklin Allen, Isaac Otchere and Lemma Senbet, published by The Wharton Financial Institutions Center, March 2010, 69 pages, available at: http://www.microfinancegateway.org/gm/document-1.1.8282/African%20financial%20systems.pdf
MICROCAPITAL BRIEF: Microfinance Operations in Lebanon Begin to Grow
As microfinance institutions in Lebanon are providing credit to more borrowers that are unserved by commercial banks, Director of Financial Operations at the Central Bank of Lebanon, Youssef Khalil, reports “microfinance is filling – modestly filling – part of this gap.”
MICROCAPITAL BRIEF: Venezuela to Implement Universal and Microfinance Banking and De-Commercialize Current Financial System
Venezuela’s new financial infrastructure, recently approved by the National Assembly, will replace the General Law on Banks and establish universal banking, microfinance banking and money exchange offices that will launch at an unspecified date.
MICROCAPITAL BRIEF: India’s Microfinance Industry on Brink of “Collapse” Due to Credit Freeze in State of Andhra Pradesh
India’s microfinance industry is reportedly on the verge of “collapsing,” according to the UK’s Financial Times newspaper, due to politically-triggered bank freezes on credit in the state of Andhra Pradesh, where outstanding loans reportedly measure USD 2.7 billion distributed to 6.7 million borrowers.
MICROFINANCE EVENT: USAID-Tijara to Hold Inclusive Financial Services Stakeholders’ Conference 2010 in Erbil, Iraq, November 28-30, 2010
Event Name: Inclusive Financial Services Stakeholders’ Conference 2010. “Putting the Poor First: Improving the Regulatory Environment, Industry Infrastructure, and Institutional Performance for Greater Impact”
Event Date: November 28-30, 2010
Event Location: Erbil, Iraq
MICROCAPITAL BRIEF: Anglican Diocese of Enugu, Nigeria, to Launch Microfinance Bank
Emmanuel Chukwuma, the Anglican bishop of the diocese in Enugu, Nigeria, announced that the diocese will establish a microfinance bank that will employ 80 people and assist community residents who are already engaged in microenterprises.