“Microfinance Banana Skins 2014: Facing Reality;” published by Centre for the Study of Financial Innovation; July 2014; 84 pages; available athttp://csfi.org/files/Microfinance_Banana_Skins_2014_-_WEB.pdf
This report, which is based on data collected by surveying 306 people associated with the microfinance industry, examines 19 risks faced by microfinance institutions (MFIs) across the globe.
By David Lascelles and Sam Mendelson, published by the Centre for the Study of Financial Innovation, July 2012, 50 pages, available at: http://www.citigroup.com/citi/microfinance/data/news120628.pdf
By David Lascelles and Sam Mendelson, published by the Centre for the Study of Financial Innovation, February 2011, 48 pages, available at: http://www.cgap.org/gm/document-1.9.49643/Microfinance_Banana_Skins_2011.pdf
The Centre for the Study of Financial Innovation (CSFI), a nonprofit think tank that was established in the United Kingdom in 1993, recently published “Microfinance Banana Skins 2011,” CSFI’s third survey of the global microfinance industry.
CGAP (Consultative Group to Assist the Poor) has issued a call for participation in its “Banana Skins” survey which aims to identify the main risks facing the industry over the next two to three years based on the views of practitioners, investors and close observers of microfinance.
A recent article in the US Banker journal [1] sets out some observations about the much discussed topic of the impact of the global financial crisis on the microfinance sector. Reporter Mr Joseph Rosta makes references to the ‘Microfinance Banana Skins 2009’ [2], a publication by British-based think tank CFSI [3] that measures the risks facing the microfinance sector, and reiterates the view held by some market participants that the sector ‘could face a fall in growth and funding because of the global recession and declining investor confidence’. The survey, which forms the basis of the Banana Skins 2009 report, is based on interviews with more than 400 microfinance lenders, investors, regulators and analysts in 82 countries. The report states that of the top 10 risks now facing the microfinance sector, nine are directly or indirectly related to the economic meltdown, including the two biggest: credit risk and liquidity.
Written by David Lascelles and Sam Mendelson, released in June 2009 as publication number 85 of the Centre for the Study of Financial Innovation (CSFI), sponsored by Citi Foundation and the Consultative Group to Assist the Poor (CGAP), 52 pages, available at: http://www.cgap.org/gm/document-1.9.35203/Microfinance%20Banana%20Skins%202009.pdf
Written by the Centre for the Study of Financial Innovation (CSFI) based on its research sponsored by Citi and the Consultative Group to Assist the Poor (CGAP), released March 2008, 41 pages, available here.
Source: Microfinance Information eXchange (MIX).
MicroCapital: Please describe one of the key issues to be covered this year at European Microfinance Week.
Christoph Pausch: The question of over-indebtedness is still the major risk for the sector, as identified in the most recent Banana Skins survey. We had a very successful plenary last year exploring the issue from a research perspective. This year, we’re taking a very different approach by bringing CEOs of leading microfinance institutions (MFIs) from three countries – Bangladesh, Morocco, and Mexico – to discuss how they’ve been dealing with the issue. Each of these countries has had a different experience, with Bangladesh having successfully averted a potential crisis by slowing market growth (as described in an excellent paper by Stuart Rutherford and Greg Chen). Morocco was one of the original “microfinance crisis” countries during 2008 and 2009, and the MFIs there have had an interesting experience in resolving the problems from that period. Finally, Mexico is a major market with serious concerns regarding over-indebtedness, and MFIs there are working to avert a potential crisis.
Risk Management Initiative in Microfinance (RIM), a platform that promotes adoption of risk management standards in microfinance, has announced the launch of its official website, which aims to provide a “hub for the dissemination of risk management standards, information sharing and industry cooperation” [1].
The Centre for the Study of Financial Innovation (CSFI), a nonprofit think tank that was established in the United Kingdom in 1993, recently released “Including Africa – beyond microfinance”, a report that emphasizes the future potential role of the commercial banking and mobile phone industries in providing greater financial inclusion for low-income households in Africa [1].
In response to an internal study showing strong demand for a world-class-quality, research-informed masters degree in microfinance, Australia’s Foundation for Development Cooperation (FDC) is seeking your input on this possibility via an online survey. While acknowledging that there are a few existing masters degrees specialising in microfinance, FDC argues for the expansion of offerings citing the ranking of “weak management quality” in the top five risks for microfinance by the “Microfinance Banana Skins” survey each of the last two years.
Bob Annibale is Global Director of Citi Microfinance. He leads the bank’s commercial relationships with microfinance institutions, on a multi-business and product basis, providing financing and product partnerships to institutions that serve the poor and the unbanked.
He joined Citibank in 1982. After a first assignment in Greece, he held a number of senior treasury, risk and corporate positions at Citi in Athens, Bahrain, Kenya, London and New York. Mr. Annibale completed his BA degrees in History and Political Science at Vassar College and his Masters Degree in African Studies (History) at the University of London, School of Oriental and African Studies.
Mr. Annibale served on the Board of Advisors for the United Nations High Level Commission on Legal Empowerment of the Poor. He represents Citi on the Board of the Microfinance Information Exchange, on the Council of Microfinance Equity Funds and with the Microfinance Network. He also serves on a number of other external boards and councils.
In a blog on the CGAP Microfinance Blog portal entitled ‘When MFIs fail, is their loan portfolio worth anything?’ [1], Senior Advisor to Research and Market Intelligence Team at CGAP, Mr Richard Rosenberg refers to Mr Daniel Rozas’s publication entitled ‘Throwing in the Towel: Lessons from MFI Liquidations’ [2]and makes some observations about the steps an MFI should take to maximise collections on a deteriorating loan portfolio. Mr Rosenberg notes that Mr Rozas’ article offers a ‘useful, timely, concise, and readable study of a half-dozen MFI failures, focusing on efforts by creditors and others to collect the loan portfolio of the defunct institutions’ but cautions that some of Mr Rozas’ recommendations may be difficult to implement in practice.
Event Name: Encuentro Centroamericano de Microfinanzas
Date: September 9 -11, 2009
Location: Real InterContinental Hotel, San Salvador, El Salvador
See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events
Source: Microfinance Information Exchange (MIX).
Source: Knowledge@Wharton.