Women’s World Banking (WWB), an organization that provides technical and advisory services to its global network of microfinance institutions (MFIs), has appointed Kathryn C. Mayer as the Director of the Center for Microfinance Leadership (CML), a WWB organization that provides workshops, coaching and support to chief executive officers (CEOs) and senior managers in the microfinance industry.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Supports Small and Medium-Sized Enterprises (SMEs) with $25m Loan to UniCredit Leasing Ukraine
The European Bank for Reconstruction and Development (EBRD), an international finance institution, recently loaned USD 25 million to UniCredit Leasing Ukraine, the Ukrainian arm of the international leasing company UniCredit Leasing, in an effort to increase loans to small and medium-sized enterprises (SMEs). The loan to a leasing company indicates that the EBRD sees value in leasing as a form of financing for SMEs that are unable to purchase equipment outright.
MICROCAPITAL BRIEF: Bank of the Philippine Islands Globe BanKO to Provide Investment Services to Microfinance Institutions (MFIs)
Bank of the Philippine Islands (BPI) Globe BanKO recently announced plans to expand its operations to include providing client microfinance institutions (MFIs) with liquidity management services and helping MFIs improve their operations [1]. BPI Globe BanKO currently provides clients with wholesale funds and technology and has recently started a microfinance pilot program to introduce deposit-taking, microloan and microinsurance services to retail customers [2].
MICROCAPITAL BRIEF: Compartamos Banco, a Mexican Microfinance Bank, Reports 33% Increases in Net Income and Total Loan Portfolio for 2009
Compartamos Banco, a Mexican microfinance bank, reports that both its net income and its total loan portfolio increased by 33 percent in 2009. Fernando Alvarez Toca, the CEO of Compartamos Banco, reflected upon 2009 as “one of the most challenging years in Compartamos’ history” due to the global downturn [1].
MICROCAPITAL BRIEF: Bill and Melinda Gates Foundation and MasterCard Foundation to Grant $16m to Opportunity International’s African Microfinance Program
The Bill and Melinda Gates Foundation and the MasterCard Foundation are partnering to award a grant of USD 16 million to Opportunity International, an international non-profit organization with a microfinance program headquartered in Malawi. The Bill and Melinda Gates Foundation website announces that the purpose of the grant is “to support the expansion of new delivery channels, savings and agricultural finance in Malawi, Ghana, and other African countries” [1].
MICROCAPITAL BRIEF: Fitch Releases Ratings of ProCredit Bank of Bosnia & Herzegovina and ProCredit Bank of Kosovo, Providers of Finance and Microfinance to Micro-, Small and Medium-Sized Enterprises
Fitch Ratings, a global credit ratings agency, has released its ratings of ProCredit Bank of Bosnia & Herzegovina (PCBiH) and ProCredit Bank of Kosovo (PCBK).
MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Warns Microfinance Institutions (MFIs) to Improve Governance Standards
The Reserve Bank of India (RBI), India’s central bank, has warned that microfinance institutions (MFIs) will be taken off the priority sector lending list if the industry does not improve its governance standards.
MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Financiera Independencia Closes $41m Acquisition of Financiera Finsol
Financiera Independencia, a Mexican microfinance institution (MFI) that focuses on urban lending to individuals, has closed an MXP 530 million (USD 41 million) deal to acquire Financiera Finsol, a Mexican MFI that focuses on group lending in rural areas, and three related entities: Finsol Vida, an insurance broker; Finsol, a service company; and Instituto Finsol Brazil, an MFI in Brazil.
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Focus Note Examines Consumer Protection Regulation in Microfinance Industry
A new CGAP (Consultative Group to Assist the Poor) Focus Note examines “what consumer protection regulation should look like in places where consumers are poor, access to finance is limited, and regulatory capacity is often overstretched.”
MICROCAPITAL BRIEF: European Commission Launches $135m Microfinance Facility
The European Commission has officially launched the EUR 100 million (USD 135 million) “European Progress Microfinance Facility,” which was approved by members of the European Council and European Parliament.
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Article Discusses Tradeoffs in Encouraging Healthy Competition in Microfinance Sector
A recent article featured on the CGAP (Consultative Group to Assist the Poor) website discusses a new series of Policy Framing Notes by regulatory expert Dr David Porteous concerning the tradeoffs that regulators face in trying to encourage healthy competition in the microfinance industry.
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Releases “Technical Guide for Investors on Implementing the Client Protection Principles”
CGAP (Consultative Group to Assist the Poor) has released the “Technical Guide for Investors on Implementing the Client Protection Principles,” as part of a wider consumer protection campaign focusing on fair lending within the microfinance industry.
MICROCAPITAL BRIEF: Reserve Bank of Fiji Creates National Financial Inclusion Taskforce to Increase Access to Financial Services Including Microfinance
The Reserve Bank of Fiji (RBF) recently created a National Financial Inclusion Taskforce made up of 11 members, including four private sector representatives, to oversee the extension of financial services to unemployed and impoverished residents of Fiji. According to Sada Reddy, RBF governor, these services include contributing to the establishment of microenterprises to alleviate unemployment.
MICROCAPITAL BRIEF: Indonesian Government Adds 13 Banks to Association of Regional Development Banks (Asbanda) to Distribute Microcredit
The government of Indonesia has added 13 existing banks to the Association of Regional Development Banks (Asbanda) to distribute microcredit across the country.
MICROCAPITAL BRIEF: Nigerian Satelite Microfinance Bank Deploys Clickatell SMS Alert System to Limit Fraud
In an effort to prevent fraud and keep customers informed, Satelite Microfinance Bank, a microfinance institution in Nigeria, has recently started using the Clickatell text-message alert system to notify customers when debit or credit activity is occurring on their accounts.
MICROCAPITAL BRIEF: Indian Microfinance Institution SKS Microfinance Raises $21m from Debentures and Commercial Paper
SKS Microfinance, a microfinance institution in India, recently raised INR 100 crore (the equivalent of USD 21 million) by issuing INR 50 crore (the equivalent of USD 10.5 million) worth of non-convertible debentures to Bajaj Allianz Life Insurance Company, an Indian life insurance provider, and INR 50 crore worth of commercial paper to Religare Asset Management Company, a mutual fund.
MICROCAPITAL BRIEF: Newsweek Article Examines Importance of Microfinance Institutions (MFIs) in Post-Disaster Environments
A recent article in US-based Newsweek magazine entitled ‘Big Crisis, Small Help’ examines the importance of microfinance institutions (MFIs) in mitigating crises in post-disaster environments.
MICROCAPITAL BRIEF: International Finance Corporation (IFC), SONAM, and Bank of Africa Invest Total of $2.25m in MicroCred Senegal, a Microfinance Institution (MFI)
The International Finance Corporation (IFC), the investment arm of the World Bank, has announced that it will make an equity investment of XOF 574.6 million, the equivalent of over USD 1.2 million, in MicroCred Senegal, a microfinance institution (MFI) located in Senegal that was founded by the MicroCred Group, an investment company based in France that is part of the PlaNet Finance Group.