Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, announced that microfinance institutions (MFIs) can now start operations in cities and rural areas that had no programs aiming at low-income groups.
Category: Regulation
MICROCAPITAL BRIEF: Microfinance Banks (MFBs) Whose Licenses Were Recently Revoked by the Central Bank of Nigeria (CBN) May Reapply Under Stiffer Requirements
The 224 microfinance banks (MFBs) whose licenses were recently revoked by the Central Bank of Nigeria (CBN), Nigeria’s central banking authority, must satisfy a new requirement of a minimum capital base of NGN 100 million (approximately USD 650,000) and NGN 2 billion (USD 13.1 million) respectively for unit and state MFBs if they wish to obtain new licenses to resume lending.
MICROCAPITAL BRIEF: Series of Suicides Related to Microloan Repayment Rock India, Raises Questions of Whether Interest Rates Charged by Microfinance Institutions (MFIs) are Too High
A series of microfinance-related suicides in India have recently been reported, raising questions about whether the interest rates charged by microfinance institutions (MFIs) are usurious.
MICROCAPITAL BRIEF: Andhra Pradesh Government Plans Legislation to Restrict Collection Practices of Microfinance Institutions (MFIs) After Rise in Suicides Among Borrowers
A rise in suicides among microfinance clients in the Indian state of Andhra Pradesh has the local government considering legislation to restrict the loan collection practices of microfinance institutions (MFIs) in the area.
MICROCAPITAL BRIEF: Reserve Bank of India (RBI), in Move to Expand Rural Financial Access, Updates Guidelines to Allow Individuals, Nonprofits and Corporations—But Not Microfinance Institutions—to Serve as Business Correspondents for Banks
The Reserve Bank of India (RBI), India’s central banking authority, recently announced that it has updated guidelines so that “individuals, non-governmental organizations, cooperative societies, post offices and companies with ‘large and widespread retail outlets'” may serve as business correspondents (BCs).
MICROCAPITAL BRIEF: Interest Rates Charged by Bangladeshi Microfinance Institutions (MFIs) to be Capped
A ceiling on interest rates charged on microloans might be imposed next week on microfinance institutions (MFIs) of Bangladesh by the Microcredit Regulatory Authority, the regulatory body that monitors the microfinance industry in the country.
MICROCAPITAL BRIEF: The Economist Intelligence Unit “Microscope” Study Discusses Challenges to The Rapidly Growing Microfinance Industry
A study from The Economist Intelligence Unit, publisher of The Economist magazine reports that microfinance is increasingly gaining global recognition as a viable business model, whereby technology in particular is allowing for growth in lending and other financial services for the world’s low-income microentrepreneurs.
MICROCAPITAL BRIEF: SKS Microfinance Responds to Probe from Securities and Exchange Board of India on Expulsion of Former CEO Gurumani; Stock Falls Further 6%
SKS Microfinance, a publicly traded microfinance institution (MFI) based in India, confirms that it has received an inquiry from the Securities and Exchange Board of India (SEBI), a government institution whose mandate is to protect the interests of investors, about SKS’s recent expulsion of its former CEO Suresh Gurumani [2].
MICROCAPITAL BRIEF: Former Sun MicroSystems CEO Vinod Khosla Discusses Benefits of For-Profit Microfinance Institutions (MFIs)
Vinod Khosla, former CEO of Sun MicroSystems and founder of venture capital firm Khosla Ventures, argues that both for-profit and nonprofit microfinance models can serve a beneficial role, but ultimately points to for-profit status as the goal microfinance institutions (MFIs) should be aiming achieve.
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) May Allow Microfinance Institutions (MFIs) to Acquire Banking Licenses, Accept Deposits
The Reserve Bank of India (RBI) may soon allow microfinance institutions (MFIs) to acquire banking licenses and accept deposits.
MICROCAPITAL BRIEF: Nigerian Microfinance Bank (MFB) Stakeholders Urge Staff Training to Combat High Delinquency Rates, Borrowers Reportedly “Fleeing” Town When Unable to Repay
Microfinance banks (MFBs) in Nigeria are reporting that borrowers are building up such high levels of debt that they are fleeing their homes and, having given false guarantor names, are essentially untraceable.
MICROCAPITAL BRIEF: East African Community (EAC) Discusses Elimination of Microfinance Institution (MFI) License Requirement
In a follow-up to their meeting earlier this month, the East African Community (EAC), a regional intergovernmental organization founded in 1967 consisting of the Republics of Kenya, Uganda, Rwanda, Burundi and the United Republic of Tanzania, is reportedly discussing the possible elimination of microfinance institution (MFI) licenses with the aim of facilitating the expansion of microfinance operations in the member states.
MICROCAPITAL BRIEF: Central Bank of Nigeria Revokes Licenses of 224 Microfinance Banks
The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, recently revoked the licenses of 224 of the country’s 820 microfinance banks.
MICROCAPITAL BRIEF: Women’s World Banking (WWB) Center for Microfinance Leadership Highlights Importance of Training
The latest newsletter of the Women’s World Banking (WWB) Center for Microfinance Leadership, an organization that provides technical and advisory services to microfinance institutions (MFIs) affiliated with WWB, emphasizes the need among MFI leaders for leadership training.
MICROCAPITAL BRIEF: Government of Indonesia Signs Memorandum of Understanding with Indonesian Microfinance Institutions and Small and Medium-Sized Enterprises to Update Provisions for Microfinance, Accelerate Disbursement of $1.45b in Government-Sponsored Microloans
The government of Indonesia will update provisions for the microfinance sector, according to Coordinating Economic Minister Hatta Rajasa, in order to accelerate admittedly slow disbursement of IDR 13.1 trillion (the equivalent of USD 1.45 billion) in government-sponsored microloans, especially to small and medium-sized enterprises (SMEs).
MICROCAPITAL BRIEF: India’s Finance Ministry Asks Banks to Ensure That Microfinance Institutions (MFIs) to Which They Lend Cap Lending Rates at 24%
The financial services secretary of India, Mr R Gopalan, has written a letter to public-sector banks asking them to ensure that the microfinance institutions (MFIs) to which they lend on a wholesale basis do not charge more than 24 percent interest to retail borrowers.
MICROCAPITAL BRIEF: Social Investors Investigate Criteria for Environmental, Social and Governance (ESG) Performance of Microfinance Institutions (MFIs), Triple Jump, Oikocredit Hold Meeting to Mull Harmonization of ESG Evaluation
The Social Investor Working Group on Tool Sharing and Harmonization, a group born out of the Social Investor Group meeting in Bern in June 2010, where approximately 40 investors representing about half of total assets under management in the microfinance sector met to discuss socially responsible investing, is exploring different ways to assess the environmental, social and governance (ESG) performance of microfinance institutions (MFIs).
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Calls on Funders to Join SmartAid 2011, An Index of Microfinance Support Efficacy
CGAP (Consultative Group to Assist the Poor) has recently announced the release of SmartAid 2011, an index that measures and rates the way microfinance funders support microfinance.