MFX Solutions, a US-based company that provides currency hedging solutions for microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), recently announced that it is one of eight partners launching the Risk Management Initiative in Microfinance (RIM), which will aim to mitigate challenges MFIs face in risk management; promote best practices; institute global MFI risk management standards; and protect MFIs and their clients from internal and external risks.
Category: Risks
MICROCAPITAL BRIEF: PKF Chartered Accountants Advises Royal Bank Zimbabwe to Downscale to Microfinance Institution
PKF Chartered Accountants, the Zimbabwean member of UK-based businesses services firm PKF International, reportedly has advised Royal Bank Zimbabwe Limited, a defunct bank, to convert its commercial banking license to a microfinance institution (MFI) license, which carries lower capital requirements set by the Reserve Bank of Zimbabwe (RBZ), the country’s central banking institution.
MICROCAPITAL BRIEF: Online Fundraiser Kiva Discloses Delinquencies of Microfinance Institutions Alidé of Benin, FECECAV of Togo
Kiva, a US-based online microlending fundraiser, recently reported on delinquent payments due to Kiva by non-profit institutions L’Association de Lutte pour la promotion des Initiatives de Développement (Alidé) of Benin and Faîtière des Caisses d’Epargne et de Crédit des Associations Villageoises (FECECAV) of Togo.
MICROFINANCE PUBLICATION ROUND-UP: Microfinance Institution Tiers, Microfinance in East Africa, Weather Risk Management
“Microfinance Institution Tier Definitions;” published by MicroRate; April 2013; 2 pages; available at http://www.microrate.com/media/downloads/2013/04/MicroRate-White-paper-Microfinance-Institution-Tier-Definitions.pdf
This report proposes a “tier system that defines microfinance institution [MFI] peer groups by institutional maturity to provide a foundation for industry analysis and informed dialogue.”
MICROCAPITAL BRIEF: Caspian Advisors Launches $40m Caspian Impact Investments (CII) Fund for Microfinance, Affordable Housing, Agriculture
Caspian Advisors Private Ltd., an Indian investment management and advisory services company specializing in the socially-responsible arena, recently launched the Caspian Impact Investments (CII) fund, which is targeted to raise USD 40 million for projects in the areas of microfinance, small business financing, affordable housing and agriculture.
MICROCAPITAL BRIEF: China Microfinance Institution Association (CMIA) to Introduce Credit Rating System for Microfinance Institutions As Early As July 2013
The China Microfinance Institution Association (CMIA), an organization that advocates for the interests of 92 domestic member microfinance institutions (MFIs) covering 27 provinces, plans to introduce a credit rating system to evaluate MFIs as early as July.
MICROFINANCE PAPER WRAP-UP: “Microinsurance in Ghana: Microinsurance as a Means of Insurance Sector Development;” by Jan Meissner; published by the National Insurance Commission (NIC), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
By Jan Meissner; published by Ghana’s National Insurance Commission (NIC) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ); 2013; 243 pages; available at: http://www.microfinancegateway.org/gm/document-1.9.61118/Promoting%20Microinsurance%20in%20Ghana_Full%20Book.pdf
This book analyzes potential ways to enhance the development of the microinsurance sector in Ghana, providing an overview of inclusive financial market development in the country as well as a series of recommended best practices for microinsurance development.
MICROFINANCE PUBLICATION ROUND-UP: Curbing Debt Stress, Social Performance in Mexico, UN Human Development Report: The Rise of the South
“Regulatory Options to Curb Debt Stress;” by Gabriel Davel; published by CGAP (Consultative Group to Assist the Poor); March 2013; 29 pages; available at: http://www.cgap.org/publications/regulatory-options-curb-debt-stress
This report highlights how the dynamics of credit markets can lead to cycles of credit growth and accumulation of consumer debt followed by widespread default and contraction.
MICROFINANCE PUBLICATION ROUND-UP: Microfinance and Patriarchy, Connecting the World’s Poorest People to the Global Economy, “Best Practices” in Serving Small Businesses
“Microfinance and Patriarchy: A Drift Away from Serving Women;” published by Knowledge @ Wharton; 2013; 3 pages; available at: http://knowledge.wharton.upenn.edu/createpdf.cfm?articleid=3169
This report highlights the importance of gender equality in the provision of microfinance and focuses on the negative impacts of patriarchal attitudes on lending practices.
MICROFINANCE PAPER WRAP-UP: “Pathways Towards Greater Impact: Better Microinsurance Models, Products and Processes for MFIs;” by Craig Churchill, Aparna Dalal and Josh Ling; published by International Labour Organization, Microinsurance Innovation Facility
By Craig Churchill, Aparna Dalal and Josh Ling; published by International Labour Organization, Microinsurance Innovation Facility; 2013; 8 pages; available at: http://www.ilo.org/public/english/employment/mifacility/download/brnote15_en.pdf
This paper examines the challenges faced by microfinance institutions (MFIs) that provide microinsurance products to low-income individuals and businesses.
MICROCAPITAL BRIEF: Agence Francaise de Developpement (AFD) to Guarantee Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans, Largely in Sub-Saharan Africa
The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based nonprofit that provides financial services to microfinance institutions, recently signed a risk and technical assistance agreement with the Agence Francaise de Developpement (AFD), a bi-lateral development finance institution of the French government, to further GCAMF’s microfinance efforts, particularly in Sub-Saharan Africa.
MICROCAPITAL BRIEF: Norway’s Telenor Group Expresses Concern over Claim of Bangladeshi Government to Grameen Business
Telenor Group, a Norwegian mobile services provider, reportedly expressed concerns about the ongoing dispute over the ownership of social businesses historically linked with Grameen Bank, a Bangladeshi microfinance institution (MFI).
MICROCAPITAL BRIEF: MFX Solutions Releases French Version of Comprehensive Asset/Liability Management (CALM) Tool for Microfinance Institutions
MFX Solutions, a US-based company that provides currency hedging solutions for microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), has released a French-language version of its Comprehensive Asset/Liability Management (CALM) Tool.
MICROFINANCE PAPER WRAP-UP: “Microfinance at The Margin: Evidence from Bosnia and Herzegovina”; by Ralph De Haas, Heike Harmgart, Britta Augsburg and Costas Meghir; published by European Bank for Reconstruction and Development
By Ralph De Haas, Heike Harmgart, Britta Augsburg and Costas Meghir, published by European Bank for Reconstruction and Development, November 2012, 8 pages, available at: http://www.ebrd.com/downloads/research/economics/publications/specials/bosnia_mircofinance.pdf
This report from the European Bank for Reconstruction and Development (EBRD) describes a randomized field experiment in Bosnia and Herzegovina analyzing the effects that a lack of credit may have on entrepreneurship and poverty.
MICROFINANCE PAPER WRAP-UP: “Microinsurance Product Development for Microinsurance Providers;” by Michael J. McCord; published by Microfinance Centre, Microinsurance Centre, International Fund for Agricultural Development
By Michael J. McCord; published by the Microfinance Centre for Central and Eastern Europe and the New Independent States, the Microinsurance Centre and the International Fund for Agricultural Development (IFAD); 2012; 124 pages; available at: http://www.ifad.org/ruralfinance/wrmf/manual.pdf
In this manual, Mr. McCord proposes a “systematic new-product development process” for the microinsurance market.
MICROCAPITAL BRIEF: Governor Yuba Raj Khatiwada of Nepal Rastra Bank Cites Multiple Lending and Low Outreach to Poor People by Microfinance Sector
Governor Yuba Raj Khatiwada of the Nepal Rastra Bank (NRB), the central banking authority of the country, reportedly expressed concern that “the growing tendency of lending money to people who have already taken a loan from other financial institutions might expose the microfinance sector to risk.”
MICROFINANCE PAPER WRAP-UP: “Microfinance in Myanmar Sector Assessment”; by Eric Duflos, Paul Luchtenburg, Li Ren and Li Yan Chen; published by CGAP (Consultative Group to Assist the Poor), International Finance Corporation
By Eric Duflos, Paul Luchtenburg, Li Ren and Li Yan Chen, published by CGAP (Consultative Group to Assist the Poor) and International Finance Corporation, January 2013, 43 pages, available at: http://www1.ifc.org/wps/wcm/connect/d87bf8804e5aba9bad7dadfce4951bf6/Microfinance+in+Myanmar+Sector+Assessment-Final.pdf?MOD=AJPERES
This joint CGAP (Consultative Group to Assist the Poor) and International Finance Corporation (IFC) report reviews the current state of Myanmar’s microfinance sector and the challenges involved with its future development.
MICROFINANCE PAPER WRAP-UP: “Map of Microfinance Distribution in India” by Amulya Krishna Champatiray, Parul Agarwal and Santadarshan Sadhu; published by the Centre for Micro Finance (CMF)
By Amulya Krishna Champatiray, Parul Agarwal and Santadarshan Sadhu; published by the Centre for Micro Finance (CMF); 2012; 41 pages; available at: http://www.centre-for-microfinance.com/wp-content/uploads/2012/02/Updated_Final_Report_Map_of_Microfinance_Report_CMF_June27.pdf
This report summarizes the findings of an initiative that gathered information on the portfolios, products and business correspondents of 103 microfinance institutions (MFIs) across India.