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India: Meeting New Bank Licensing Norms Tough for Most MFIs
August, 31 2011
Mumbai, India - Barring a few top players, banking is likely to be a distant dream for most microfinance institutions in the country. This is because the draft norms on foreign shareholding, minimum capital requirement and diversified ownership structure would prevent micro-lenders from entering the banking space
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Impact Investing and Social Entrepreneurship: A Way Forward
August, 29 2011
New York, United States - An interview with Ron D. Cordes, Co-founder of the Cordes Foundation, which he and his wife Marty created in 2006. The primary focus of the Foundation is to utilize social entrepreneurship and impact investing as tools for global poverty alleviation.
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Colombia: Microcredit Growing Steadily at 15 Percent a Year
August, 29 2011
Bogota, Colombia - The more than 1.2 million microenterprises operating in Colombia are responsible for around 50 percent of all employment. And many of these small businesses owe their existence to the microfinance system, according to a report by Visión Económica, a local business research group.
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Brazil Expands Federal Microcredit Program
August, 25 2011
Brasilia, Brazil - The federal government of Brazil has announced that it will expand its National Program of Oriented Productive Microcredit (PNMPO). With the expansion, the program will be renamed "Growing - National Microcredit Program," and will include new conditions for financing, including lower interest rates and lending targets for public banks.
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Large Demand for Micro-Credit in Burma
August, 24 2011
Chiang Mai, Thailand - Only about 10 per cent of the demand for small loans in Burma is being met, according to participants at a micro-finance workshop held recently in Rangoon.
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Microfinancier Aims to fuel Egypt’s Recovery
August, 22 2011
Cairo, Egypt - An Egyptian microfinance company that specialises in lending to small and medium-sized companies is finding that its form of financing is gaining traction as emphasis shifts away from the country’s big business.
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Building Alternative MFI Model
August, 22 2011
Mumbai, India - In Microfinance 'asymmetric information' exists, where the lender has little in his armory to know that the borrower will repay the loan. In the absence of a clear credit evaluation process, this asymmetry will continue to exist and we run the risk of 'adverse selection'. As long as we are dealing with communities that are known to perform, it will work. But, as we scale up this trust model, then we run the risk of selecting the wrong people
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Bolivia's First Crop Insurance Scheme Promises to Empower Farmers
August, 19 2011
London, United Kingdom - Bolivia has one of the world's most far-reaching micro-credit industries. In a country of 10 million people, the biggest bank, BancoSol, is loaning $500m to more than 150,000 Bolivians. Yet Miguel Solana, a programme officer who runs the Bolivia project at the ILO, says: "Credit is not the only solution." He believes farmers in Latin America have wrongly been given loans for far too long, when they would have derived greater benefit from an insurance policy instead
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Micro-Finance - What Role in Africa's Development?
August, 17 2011
Harare, Zimbabwe - The honeymoon with micro-finance is over. Since the idea of lending or giving very small sums of money to poor people was introduced to the world by the pioneering Grameen Bank in Bangladesh, the approach has been taken up by many non-governmental organisations, donor agencies and the United Nations as an essential part of their poverty-reduction efforts
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45 Million Indians Move Above $1.25 A Day
August, 16 2011
Washington, DC - According to a report released by the Microcredit Summit Campaign, a program of the US-based advocacy group RESULTS Educational Fund, nearly 9 million Indian households involved in microfinance - including approximately 45 million family members, on net - rose above the $1.25 a day threshold between 1990 and 2010.
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Peru: Microfinance Meets Green Energy Efforts
August, 16 2011
Luxembourg - ADA is pleased to announce that two microcredit programmes for the acquisition of clean energy products in Peru were launched under The Energy Inclusion Initiative in July 2011.
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Pakistan: Microfinance Banks Deposits Fall by 13.9pc
August, 13 2011
Karachi, Pakistan - The deposits of Microfinance Banks (MFBs) fell by 13.9 percent Quarter on Quarter (QoQ) to Rs8.9 billion in the Jan-Mar quarter from Rs10.338 billion in the previous quarter, said State Bank of Pakistan’s (SBP) quarterly report on Mincrofinance
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Survey: Russian Microfinance Market Keeps Growing
August, 10 2011
Russian Federation - The first quarter of 2011 witnessed improvements in nearly all primary financial indicators of non-banking microfinance institutions, which implies the end of the market’s post-crisis recovery and the formation of a long-term growth trend
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Philippines: Rural Banks Prepare for Entry of Foreign Investors
August, 08 2011
Manilia, Philippines - The rural banking industry is preparing for the possible entry of foreign investors once the proposed bill of Leyte Rep. Sergio Apostol that would allow foreigners to buy a 40 percent stake in rural banks is passed into law
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Microloans give Maghreb youth economic boost
August, 05 2011
Algeria - With a high rate of unemployment across the Maghreb, young people are looking for ways to take their economic future into their own hands. Small, affordable loans, or "microcredits", give them their start.
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Advans SA signs grant agreements with AFD and OeEB
August, 03 2011
Paris, France - Advans SA, the international venture capital company specialised in microfinance, is pleased to announce the signature of grant agreements with two renowned development finance institutions.
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India: New rule may bring back private equity to MFI
August, 03 2011
Kolkata , India - A clarity in the microfinance institution (MFI) with a new Bill in place appears to have paved the way for return of private equity (PE) in the sector, almost after a year. Over the next six months, the sector is set to absorb as much as Rs 600 crore of PE investments, according to deal makers
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The Microfinance Crisis: Is There a Way Out?
August, 02 2011
New York, United States - For the better part of nine months, the microfinance industry has been in paralysis because of restrictions put in place by the government of Andhra Pradesh, the state that was the center of micro-lending in India. Almost immediately, banks turned off the credit tap that allows microfinance lenders to operate, and borrowers abandoned the high repayment rates of the past and stopped paying
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