At a recent three-day conference in Bangladesh titled, “Microfinance Regulations: Who Benefits,” the country’s Finance Minister, Mr Abul Maal Abdul Muhith, argued that high interest rates and charges are the main challenges facing Bangladesh’s microfinance industry.
Category: South Asia, East Asia and Pacific
MEET THE BOSS: Nanno Kleiterp of the Netherlands Development Finance Company (FMO)
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO uses loans, mezzanine financing and equity investments to invest in financial institutions and other companies in developing countries. With an investment portfolio of USD 6.5 billion, FMO is one of the world’s largest bilateral private sector development banks. FMO’s mission is to create flourishing enterprises that can serve as engines of sustainable growth in their countries.
MICROCAPITAL BRIEF: Outstanding Loan Volume by NGO Microfinance Institutions (MFIs) in India Doubled from 2008 to 2009
According to the Bharat Microfinance Report released by Sa-Dhan, an organization of microfinance institutions in India, the portfolio of NGO microfinance institutions (MFIs) grew 97 percent to INR 351 billion (the equivalent of USD 7.7 billion) in 2009.
MICROCAPITAL BRIEF: Rural Bankers Association of the Philippines (RBAP) Takes Measures to Assist Farmers and Small and Medium-Sized Enterprises Affected by El Nino
The Rural Bankers Association of the Philippines (RBAP), an organization founded to promote the rural banking industry in the Philippines, recently stated that its members will take measures to assist farmers and small and medium-sized enterprises affected by El Nino, a climate pattern that often results in weather disturbances.
MICROCAPITAL BRIEF: State Bank of India, a Nationalized Commercial Bank, Provides $43.9m Loan to Hyderbad-Based Microfinance Institution (MFI), SHARE Microfin Limited
The State Bank of India (SBI), a nationalized commercial bank, has provided an INR 200 crore loan, the equivalent of over USD 43.9 million, to SHARE Microfin Limited, a microfinance institution (MFI) based in Hyderabad, India.
MICROCAPITAL BRIEF: Microfinance Institutions Network (MFIN) Predicts Efforts Will Lower Microfinance Interest Rates in India
The Microfinance Institutions Network (MFIN), a self-regulatory organization of 35 of India’s microfinance companies, is currently working on several projects that it predicts will lower interest rates on microloans.
MICROCAPITAL BRIEF: Sequoia Capital India, Sandstone Capital, Kismet Capital Advisors and SKS Trust for the Benefit of Women Entrepreneurs Replace SKS Microfinance Founder Mr Vikram Akula as Promoter of the Company
A group of four venture capital companies have replaced Mr Vikram Akula, founder of the Indian microfinance institution (MFI) SKS Microfinance, as promoter of the firm.
MICROCAPITAL BRIEF: National Anti-Poverty Commission (NAPC) of the Philippines Reports 7.1 Million Microentrepreneurs Received $3.7b in Loans Between 2001 and 2009
According to Secretary Domingo F. Panganiban of the National Anti-Poverty Commission (NAPC) of the Philippines, 7.1 million microentrepreneurs have received PHP 168 billion in loans, the equivalent of over USD 3.7 billion, from 2001 to 2009.
MICROCAPITAL BRIEF: Mohammed Yunus, Founder of Grameen Bank, Calls for Standardized Interest Rate for Microfinance Institutions (MFIs) and Strict Definition of “Microcredit” in Bangladesh
Mohammed Yunus, the founder of Grameen Bank, a microfinance institution (MFI) located in Bangladesh, recently was reported to have said that the Microcredit Regulatory Authority (MRA), Bangladesh’s primary regulator over the microfinance activities of all non-governmental organization (NGO) microfinance institutions (MFIs), should introduce a standardized maximum interest rate that can be charged by MFIs.
MICROCAPITAL BRIEF: World Savings Bank Institute (WSBI) Issues “Open Message” to Promote Access to Finance to Reach United Nation’s Millennium Development Goals (MDGs)
The World Savings Bank Institute (WSBI), an international banking association, has issued an open message promoting access to finance as a means to accelerate progress toward the United Nation’s Millenium Development Goals (MDGs).
MICROCAPITAL BRIEF: China Post Life Launches Rural Life Microinsurance Pilot Program
China Post Life Insurance Company Limited (China Post Life), a Beijing-based insurance provider, has received approval from the China Insurance Regulatory Commission (CIRC) to start a pilot program for rural life microinsurance.
MICROCAPITAL BRIEF: Chennai-based Microfinance Institution SMILE Receives $10m Investment from Developing World Markets
Developing World Markets (DWM), a US-based social investment fund manager, has made an INR 500 million (USD 10 million) investment in SMILE Microfinance Limited (SMILE), a Chennai-based microfinance institution (MFI).
MICROFINANCE PAPER WRAP-UP: Assessing the Role of Microfinance in Response to Climate Change, by Shardul Agrawala and Maëlis Carraro
By Shardul Agrawala and Maëlis Carraro, published by Organization for Economic Co-operation and Development (OECD), February 2010, 38 pages, available at: http://www.microfinancegateway.org/gm/document-1.1.4705/02.pdf
This paper examines 22 microfinance institutions (MFIs) in Bangladesh and Nepal to determine areas in which microfinance may be able to facilitate adaptation to climate change.
MICROCAPITAL BRIEF: Elevar Equity, a Bangalore-based Private Equity Fund, Raises $70m for Microfinance-focused Fund for Investments in India, Mexico, the Philippines and Peru
Elevar Equity Advisors Private Limited (Elevar), a Bangalore-based private equity fund, has raised a USD 70 million fund that will invest in microfinance and other services in India, Mexico, the Philippines and Peru.
MICROCAPITAL BRIEF: Microfinance Institution (MFI) Equity Valuations Rise in 2009 as Portfolio Quality Falls, Says Report by JP Morgan and CGAP (Consultative Group to Assist the Poor)
A new report by CGAP (Consultative Group to Assist the Poor) and JP Morgan shows that despite the global financial crisis, microfinance institution (MFI) equity valuations continued to rise across all regions during 2009.
MICROCAPITAL BRIEF: Pakistan Microfinance Network (PMN) to Set Up Credit Bureau by End of April 2010
The Pakistan Microfinance Network (PMN), a disseminator of microfinance information with 12 microfinance institution members, plans to set up a credit bureau by the end of April 2010.
MICROCAPITAL BRIEF: Microcredit Regulation Authority of Bangladesh to Make Public the Interest Rates Charged by Microfinance Institutions (MFIs)
According to Leela Rashid, the director of operations of The Microcredit Regularity Authority (MRA) of Bangladesh, the organization will begin to make public the interest rates charged by microfinance institutions (MFIs).
MICROCAPITAL BRIEF: People’s Bank of China (PBOC) to Legalize Private Lending and Remove Cap on Interest Rates Charged by Microfinance Institutions (MFIs)
The People’s Bank of China (PBOC), the central bank of China, has announced plans to legalize private lending and remove a cap on interest rates charged by microfinance institutions (MFIs).