The Center for the Economic Analysis of Risk (CEAR), based in the US city of Atlanta, and Munich Re Foundation, a nonprofit founded by German reinsurer Munich Re, recently entered into an agreement to collaborate on microinsurance research.
Category: Trends/Challenges
MICROCAPITAL BRIEF: Indian Banks Seek Personal Guarantees from Microfinance Institution (MFI) Executives As Condition of Debt Restructuring
Indian banks that have entered negotiations with microfinance institutions (MFIs) regarding restructuring wholesale microfinance debt have reportedly insisted on personal repayment guarantees from MFI directors [1].
MICROFINANCE EVENT: International Conference on Islamic Microfinance, June 13, 2011, Islamabad, Pakistan
Event Name: International Conference on Islamic Microfinance
Event Date: June 13, 2011
Event Location: Islamabad, Pakistan
MICROCAPITAL BRIEF: Indian Government Proposes Micro Financial Sector (Development and Regulation) Bill Include NBFCs, Andhra Pradesh Considers Non-Banking Financing Company (NBFC) Model to Balance Microfinance Institutions (MFI)
The Indian federal government has proposed changes to the Micro Financial Sector (Development and Regulation) bill to cover all types of microfinance institutions (MFIs), including non-banking finance companies (NBFCs) operating in the microfinance sector [2]. The Micro Financial Sector (Development and Regulation) bill, which was first passed in 2007, covers only MFIs not overseen by the Reserve Bank of India (RBI), India’s central bank [2]. RBI regulates banks and most NBFCs. This leaves NBFCs operating in the microfinance sector outside of the purview of both RBI and the Micro Financial Sector (Development and Regulation) bill [2].
MICROCAPITAL EVENT: Microfinance Pasifika Network Presents Third Pacific Microfinance Week 2011 (PMW2011), July 25 – July 29, 2011, Port Vila, Vanuatu
Event Name: 3rd Pacific Microfinance Week 2011 (PMW2011)
Event Date: July 25 – July 29, 2011
Event Location: Port Vila, Vanuatu
MICROCAPITAL BRIEF: MicroCred Group of France Releases 2010 Financial Results, Announces Plans for 2011
MicroCred Group, a microfinance investment company created by French NGO PlaNet Finance, has released its 2010 results.
For 2010, MicroCred reports a total balance sheet increase of 75 percent and an outstanding loan portfolio of EUR 43.3 million (USD 62.5 million), an increase of 73 percent compared with 2009 [1]. MicroCred reports a increase in savings deposits of 451 percent as compared with 2009 to EUR 12.7 million (USD 18.3 million) saved by 60,870 clients in 2010 [1].
MICROCAPITAL BRIEF: PlaNet Guarantee, Global Index Insurance Facility (GIIF) to Launch Index Insurance Platform in West Africa
PlaNet Guarantee, a member of the France-based PlaNet Finance Group, and the Global Index Insurance Facility (GIIF), a program of the International Finance Corporation (IFC), have joined to launch a regional platform for index insurance in West Africa. The objective of the project is “to develop agricultural insurance systems in West African countries including Senegal, Mali and Burkina Faso” [1]. PlaNet Finance Group reports that this will be done by developing indexes, designing insurance products, providing underwriting, making links between distribution channels and insurers, training farmers and disseminating information to partners [1]. The platform will be based in Senegal with satellite branches in the other two countries.
MICROCAPITAL BRIEF: Migrant-backed Loans: Mobilizing Remittances in Guatemala – Findings from William Davidson Institute, World Council of Credit Unions Presented at USAID
This “After Hours Seminar”, which was sponsored by the US Agency for International Development (AID), featured Messrs Khalid Al-Naif and Raul Reynoso from the William Davidson Institute (WDI), a think tank based at the University of Michigan in the US city of Ann Arbor, and Mr Saul Wolf from the World Council of Credit Unions (WOCCU), a US-based trade association, to discuss how to leverage remittances to mobilize microenterprise development in Guatemala.
MICROCAPITAL BRIEF: MasterCard Foundation of Canada Commits Additional $25m To BRAC’s “Microfinance Multiplied” Program in Uganda, With Plans to Open 40 New Branches
The MasterCard Foundation of Canada recently committed USD 25 million to BRAC, a microfinance institution (MFI) formerly known as the Bangladesh Rural Advancement Committee, in an effort to support the expansion of BRAC’s “microfinance multiplied” program in Uganda, which enables poor clients to use microloans to build income and assets while simultaneously encouraging social and community development. The commitment aims to enable BRAC to expand its network in Uganda by opening 40 new branches. The BRAC program provides credit, training and technical support to economically active women, with a focus on those engaged in agricultural poultry and livestock. The program also assists adolescent girls in furthering their vocational and life-skills training.
MICROCAPITAL BRIEF: Goodwell Investments Expands Beyond Microfinance to Include SME Finance, Health, Renewable Energy
Goodwell Investments, a business development company based in the Netherlands, has announced that it will expand the scope of its impact investing services from a focus on microfinance to include small and medium-sized enterprise finance, water & sanitation, health care and renewable energy [1].
MICROCAPITAL BRIEF: “Principles for Investors in Inclusive Finance” (PIIF) Created as Separate Work Stream Within United Nations’ Principles for Responsible Investment (PRI); CGAP (Consultative Group to Assist the Poor), Global Impact Investing Network (GIIN) Standards Observed
The Principles for Investors in Inclusive Finance (PIIF) initiative has been created as a separate work stream housed within the United Nations’ (UN) Principles for Responsible Investment (PRI), a set of principles devised in 2005 by 20 institutional investors to encourage investors to incorporate environmental, social and corporate governance (ESG) issues into their internal policies and investment strategies. (As of February 2011, UNPRI has 876 signatory investors). PIIF provides a framework for responsible investment focusing on providing access to finance to poor and vulnerable populations. The seven principles of PIIF and its charter signatories are listed in the February 2011 MicroCapital.org story announcing the launch of the initiative: https://www.microcapital.org/microcapital-special-report-%E2%80%9Cprinciples-for-investors-in-inclusive-finance%E2%80%9D-launched-at-responsible-finance-forum-in-the-hague-netherlands/ [2].
MICROCAPITAL BRIEF: Representatives of Cambridge, Care, Center for Global Development, SKS Microfinance Discuss “Does Microfinance Help People Escape Poverty?”
Associate director Ms Madeleine Bunting of British newspaper The Guardian recently facilitated a discussion to address the question of whether microfinance helps reduce poverty with Mr Ha-Joon Chang, Cambridge University economist; Mr Ajaz Khan, microfinance advisor for Swiss nonprofit organization Care International; Mr David Roodman, senior fellow at US-based, nonprofit think tank Center for Global Development; and Mr Vikram Akula, chairperson and founder of Indian microfinance institution (MFI) SKS Microfinance [1].
MICROCAPITAL EVENT: Hanson Wade Hosts Transformational Microfinance LATAM in Mexico City, Mexico, May 17 – May 19, 2011
Event Name: Transformational Microfinance LATAM
Event Date: May 17 – May 19, 2011
Event Location: Mexico City, Mexico
MICROCAPITAL BRIEF: Central Bank of Kenya to Connect Deposit-Taking Microfinance Institutions (MFIs), Savings and Credit Cooperatives (SACCOs) with Existing Reporting Systems; Small and Micro Enterprise Programme (SMEP) Announces Plans to Transform into Commercial Bank
The Central Bank of Kenya (CBK), Kenya’s central banking authority, recently announced plans to connect deposit-taking microfinance institutions (MFIs) and savings and credit cooperatives (SACCOS) with existing credit reporting systems that commercial banks have been required to use since 2008 [1].
MICROCAPITAL EVENT: Social Investment Organization (SIO) Presents Canadian Responsible Investment Conference 2011 in Victoria, British Columbia, Canada, June 20 – June 22, 2011
Event Name: Canadian Responsible Investment Conference 2011
Event Date: June 20 – June 22, 2011
Event Location: Victoria, British Columbia, Canada
MICROCAPITAL EVENT: Intellecap Presents Sankalp 2011: Social Enterprise & Investment Forum in Mumbai, India, May 5 – May 6, 2011
Event Name: Sankalp 2011: Social Enterprise & Investment Forum
Event Date: May 5 – May 6, 2011
Event Location: Mumbai, India
MICROCAPITAL BRIEF: Indian Microfinance Network Sa-Dhan Introduces Code of Ethics
Sa-Dhan, a microfinance network with 251 member organizations in India, has introduced a code of conduct in an effort to ensure borrowers are treated in an ethical way. The code, which was developed through consultation with microfinance institutions (MFIs), government representatives and a range of other stakeholders, consists of ten components: integrity & ethical behavior, transparency, fair practice, assessing need for financial services, appropriate interaction & collection practices, privacy of client data, governance, client education & financial literacy, competition, and feedback & grievance mechanisms [1]. The code of conduct also outlines the role of policy makers and the steps required for implementation including: the collection of data; analysis; capacity building workshops; enforcement; and integration with policies, training and MFI implementation [2].
MICROCAPITAL EVENT: Africa Investor Hosts Investors’ Summit on Social Investing and Social Enterprise in Africa, Capetown, South Africa, May 3, 2011
Event Name: Investors’ Summit on Social Investing and Social Enterprise in Africa – Incorporating Sukuma Afrika Millennium Development Goals (MDG) Awards
Event Date: May 3, 2011
Event Location: Capetown, South Africa