Microfinance Information Exchange (MIX), the US-based nonprofit data provider, recently announced that it has integrated information on the software providers used by microfinance institutions (MFIs) into its MIX Market online database.
Category: Trends/Challenges
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG) Subscribe to Convertible Bonds Issued by Azerbaijan’s Unibank, Provider of Microfinance and Traditional Banking
European development finance institutions, European Bank for Reconstruction and Development (EBRD) and Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG), have subscribed to convertible bonds issued by Unibank, a private commercial bank in Azerbaijan that provides microfinance and other services. EBRD has purchased USD 17.5 million in convertible bonds and DEG has committed to purchasing bonds worth USD 7.5 million [1]. The convertible bond facility was designed to support Unibank’s capital base as well as to provide long-term liquidity for continued lending to small and medium-sized enterprises and retail customers. The terms of the convertible bonds have not been reported.
MICROCAPITAL BRIEF: European Commission (EC) Accepting Applications to Establish “European Network of Mentors for Women Entrepreneurs”
The European Commission (EC), the executive body of the European Union (EU), is accepting applications for organizations to set up the European Network of Mentors for Women Entrepreneurs.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC) Promote Lending Against Crop Receipts in Russia, Ukraine
The European Bank for Reconstruction and Development (EBRD), a multilateral finance institution based in London, and International Finance Corporation (IFC), the private-investment arm of the World Bank Group, are working together to promote lending against crop receipts of Russian and Ukrainian farmers in an effort to increase investment in agribusiness operations by allowing farm owners to use future harvests as collateral when applying for loans [1] [2].
MICROCAPITAL BRIEF: United States Agency for International Development (USAID) Announces Launch of $30m Nepal Economic, Agriculture and Trade (NEAT) Project, Which Will Include Support for Microfinance
In its effort to support private sector development in Nepal, the United States Agency for International Development (USAID), a government agency that provides international economic and humanitarian assistance, recently launched the USD 30 million Nepal Economic, Agriculture and Trade (NEAT) project.
MICROCAPITAL BRIEF: SKS Microfinance of India Sells $135m in Securitized Loans
SKS Microfinance, an Indian for-profit MFI, recently announced the sale of securitized loans worth INR 6.1 billion (USD 135 million), in an effort to increase liquidity amidst a funding shortage that is one part of the turmoil in the microfinance industry in the Indian state of Andhra Pradesh.
MICROCAPITAL BRIEF: Microinsurance Catastrophe Risk Organization (MiCRO) Created to Help Protect Microentrepreneurs in Haiti
A donor-capitalized insurance facility, Microinsurance Catastrophe Risk Organization (MiCRO), has been developed by a syndicate of stakeholders in an effort to empower Haiti’s microentrepreneurs to protect themselves against the economic aftermath of natural catastrophes.
MICROCAPITAL BRIEF: World Bank Group Publishes Guide to Reducing Fraud in Mobile Banking Services for Unbanked Clients, “Protecting Mobile Money Against Financial Crimes”
The World Bank Group, a Washington, DC-based group of five institutions with a mission to fight poverty and improve living standards for people in the developing world, has published a book titled “Protecting Mobile Money Against Financial Crimes”. The book was written as a guide to delivering mobile banking services to unbanked customers in rural areas [1]. Based on fieldwork in eight markets including Kenya, Malaysia, Mexico, the Philippines and Zambia and research in more than ten countries, the book suggests approaches to mitigate the risks associated with mobile money [1].
MICROCAPITAL BRIEF: Nigerian Microfinance Institutions (MFIs) Continue to Require Collateral, Other Conditions for Loans; Lift Above Poverty Organisation (LAPO) to Cut Interest Rates
Most Nigerian microfinance institutions (MFIs) reportedly continue to place conditions on borrowers who are seeking to take out loans, despite the stated policy of the Central Bank of Nigeria (CBN) to de-emphasize such requirements.
MICROFINANCE EVENT: 5th Annual University of Pennsylvania Microfinance Conference, Philadelphia, USA, April 9, 2011
Event Name: 5th Annual University of Pennsylvania Microfinance Conference
Event Date: April 9, 2011
Event Location: Philadelphia, Pennsylvania, USA
MICROCAPITAL BRIEF: Smart Campaign Releases New Guidance Document, Proposed Revisions to “Client Protection Principles”
The Smart Campaign, a global initiative to improve accountability regarding client protection in the microfinance industry, has released proposed revisions to its “Client Protection Principles”, the campaign’s framework is intended to help microfinance institutions (MFIs) practice good ethics and smart business, as well as a guidance document created to act as a bridge between the principles and practice.
MICROCAPITAL BRIEF: Shahid Khandker, Hassan Zaman Argue that Microfinance Has Advanced Bangladesh But Can Not Eliminate Poverty in Any Country
Shahid Khandker and Hassan Zaman, senior economists at the World Bank, recently reviewed published studies such as The World Bank’s 2008 Poverty Assessment and the records of Palli Karma-Sahayak Foundation (PKSF), a government-backed microfinance funder, an effort to determine the role that microfinance has played in the economic development of Bangladesh since the 1970s.
MICROFINANCE EVENT: 9th Annual Women’s World Banking (WWB) Microfinance and the Capital Markets Conference, New York City, USA, April 6-7, 2011
Event Name: 9th Annual Women’s World Banking (WWB) Microfinance and the Capital Markets Conference
Event Date: April 6 – April 7, 2011
Event Location: New York City, USA
MICROCAPITAL EVENT: CANCELLED Developing Inclusive Financial Systems: The CGAP (Consultative Group to Assist the Poor) Course for Funders of Microfinance in Jakarta, Indonesia, April 22 to 29, 2011
THIS EVENT HAS BEEN CANCELLED.
Event Name: Developing Inclusive Financial Systems: The CGAP Course for Funders of Microfinance, “How Can Funders Support Microfinance Effectively?”
Event Date: April 22 – April 29, 2011
Event Location: Jakarta, Indonesia
MICROCAPITAL BRIEF: Dr Muhammad Yunus Says Borrowers’ Control of Microfinance Institution Grameen Bank is Key to Success
In an email exchange with US-based newspaper The Wall Street Journal, Grameen Bank founder and Nobel Peace Prize winner Dr Muhammad Yunus has been asked for his thoughts on efforts by the Bangladesh Bank (BB), the central bank of Bangladesh, to remove him from his position as managing director of Grameen Bank [1] [2] [3].
MICROCAPITAL BRIEF: Reserve Bank of Fiji to Take Microfinance “Expos” to Rural Islands
Reserve Bank of Fiji (RBF), the nation’s central banking authority, has announced plans to take microfinance expos to the outer rural islands Fiji in an effort to raise awareness of microfinance and promote greater financial inclusion.
MICROCAPITAL BRIEF: Standard Chartered Bank (Pakistan) Closes $6.9m Loan to Tameer Micro Finance Bank Limited (TMFB) With Support of State Bank of Pakistan’s Micro Finance Credit Guarantee Facility
Standard Chartered Bank (Pakistan) Limited, a subsidiary of UK-based Standard Chartered PLC, has closed a PKR 600 million (USD 6.95 million), two-year loan to Tameer Micro Finance Bank Limited, a licensed commercial bank that provides microfinance services in Pakistan. As of December 31, 2008, Tameer has total assets of USD 29.1 million, a gross loan portfolio of USD 11.5 million and 43,000 active borrowers.
MICROCAPITAL BRIEF: Funding Shortage Continues in Indian State of Andhra Pradesh, Loans Overdue to SKS Microfinance Total $27m
London-based news agency Reuters recently reported that since the October 2010 passage of legislation by the state government of Andhra Pradesh in response to the turmoil in the microfinance sector there, funding still remains an issue for microlenders. This is despite efforts by India’s central bank, the Reserve Bank of India, to ease the liquidity crunch. According to Reuters, the issues of mission drift among for-profit players – putting short-term profits ahead of sustainability – and an uncertain regulatory outlook have contributed to the funding shortage [1]. Reuters also states that domestic lenders exercising extra caution when lending to Indian microfinance institutions (MFIs) further deter foreign investors [1].