Daniel Rozas, a microfinance consultant based in Brussels, and Vinod Kothari, a microfinance practitioner based in Kolkata, India, recently wrote an article published on the Microfinance Focus website discussing the different rating methodologies practiced by rating agencies CRISIL and Fitch on securitized microfinance investment products.
Category: Trends/Challenges
MICROCAPITAL BRIEF: Microfinance in Afghanistan Challenged by Culture, Religion, Gender Struggles
The microfinance sector in Afghanistan has seen growth in demand for credit since the Afghan government developed the Microfinance Support Facility for Afghanistan (MISFA) in 2003, with approximately 1.5 million loans totaling USD 831 million disbursed to date.
MICROCAPITAL BRIEF: Mexican Microfinance Lender Financiera Independencia Acquires Apoyo Economico Familiar (AEF) of Mexico, Apoyo Financiero Incorporated (AFI) of California
Financiera Independencia, a Mexican microfinance lender with MXN 8.6 billion (the equivalent of USD 703 million) in assets, recently announced that it will acquire all of the outstanding shares of Apoyo Economico Familiar (AEF), a Mexican provider of unsecured personal loans with MXN 951 million (the equivalent of USD 77.6 million) in total assets, and purchase a 77-percent ownership stake in Apoyo Financiero Incorporated (AFI), a microfinance lender serving the unbanked Hispanic community in San Francisco, California.
MICROCAPITAL BRIEF: Microfinance Institutions (MFIs) in India Take Legal Action Against Yes Bank for Loan Recall
Several microfinance institutions (MFIs) in India announced that they will be taking legal action against Yes Bank, a private-sector bank headquartered in Mumbai, for recalling loans totaling several billion rupees (the equivalent of tens of millions of US dollars).
MICROCAPITAL BRIEF: Grameen Foundation Releases Updated Microfinance Management Information Software (MIS) Mifos 2.0
The Grameen Foundation, a nonprofit based in Washington, DC, that aims to help microfinance institutions (MFIs) replicate the microfinance model of Grameen Bank, has announced the release of Mifos 2.0, the latest version of its management information software (MIS) for microfinance.
MICROCAPITAL BRIEF: Yes Bank of India Recalls Approximately $22m in Loans Advanced to Microfinance Institutions (MFIs)
Yes Bank Limited, a private bank based in Mumbai, India, has reportedly recalled approximately INR 1 billion (USD 22.2 million) in loans it advanced to microfinance institutions (MFIs).
MICROCAPITAL BRIEF: SKS Microfinance Shares Off 9% Amidst Uncertainty Surrounding Indian Microfinance Sector
Shares of SKS Microfinance, India’s only listed microfinance institution, tumbled to an all-time low on Monday, December 20, as uncertainty surrounding the country’s microfinance sector remained high.
MICROFINANCE BRIEF: State Bank of India (SBI) Considers Restructuring Loans to “Non-Performing” Microfinance Institutions (MFIs)
The State Bank of India (SBI), a state-owned financial services company, has announced that it may restructure loans given to microfinance institutions (MFIs) that enter “non-performing” status.
MICROCAPITAL BRIEF: Microfinance Experts Say “Microcredit Is Not The Enemy”
The Financial Times, a UK-based newspaper, recently published an opinion piece titled “Microcredit is not the enemy,” which examines the recent microfinance trouble in the Indian state of Andhra Pradesh and some of the misperceptions that have subsequently emerged that deem the industry as “a flawed idea.”
MICROCAPITAL BRIEF: ACCESS Development Services of India Releases “State of the Sector Report 2010” Questioning Role of Microfinance Institutions (MFIs) as Responsible Lenders
ACCESS Development Services, a nonprofit offering consulting services to microfinance institutions (MFIs), has released its “State of the Sector Report 2010,” (not yet available online) which questions whether MFIs are responsible lenders, citing “supernormal” profits for Indian MFIs compared to Indian commercial banks.
MICROCAPITAL BRIEF: Local Government in Indian State of Andhra Pradesh Considers Additional Microfinance Regulation, Requires Disclosure of Operational Procedures
The government of the Indian state of Andhra Pradesh, where the microfinance industry has been described as experiencing a crisis, is reportedly considering new legislation to refine an ordinance that was passed in October 2010 in response to a series of suicides said to be linked to debt collector harassment.
MICROCAPITAL BRIEF: Dr Muhammad Yunus, Founder of Grameen Bank and Winner of Nobel Peace Prize for Work in Microfinance, Cleared of Allegations of Illegal Money Transfer to Grameen Kalyan
Grameen Bank founder and 2006 Nobel Peace Prize Winner, Dr Muhammad Yunus, who had been accused of ‘siphoning’ approximately USD 100 million from Grameen Bank to its affiliated health insurer Grameen Kalyan, has reportedly been cleared of any allegations of mishandling funds by the Norwegian Ministry of Affairs.
MICROCAPITAL BRIEF: Thailand Post Offices to Begin Offering Microfinance Services
The government of Thailand recently agreed to allow its network of 1,200 post offices to set up a subsidiary that will offer microloans with interest rates slated to be lower than those offered by commercial banks.
MICROCAPITAL BRIEF: Microfinance Reportedly Aiding Wildlife Conservation Efforts in Rural Tanzania
World-renowned primatologist Jane Goodall and her TaCare Program, a microcredit program focusing on rural populations surrounding Gombe National Park in Tanzania, report success in preserving wildlife and forests and improving living conditions for poor Tanzanian communities through microfinance.
MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Solicits Input For “Banana Skins” Survey of Prospects for the Commercial 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.
MICROCAPITAL BRIEF: 350 Microfinance Institutions (MFIs) Report to Microfinance Information Exchange (MIX) Social Performance Reporting Awards
The Microfinance Information Exchange (MIX), the microfinance data clearinghouse, recently argued that microfinance institutions (MFIs) around the world have increased their commitment to transparency in social performance based on a surge in applications to the MIX’s 2010 Social Performance Reporting Awards, which acknowledge openness in reporting.
MICROCAPITAL BRIEF: World Microfinance Forum Geneva Hosts Debate on Corporate Governance as it Relates to Managing Crises in Microfinance
The World Microfinance Forum Geneva recently hosted a debate on issues related to corporate governance and its importance in managing crises in microfinance.
MICROCAPITAL BRIEF: Institute for Financial Management Research Mezzanine Finance Private Limited (IFMR Mezz) Provides $221k in Subordinated Debt to Saija Finance Private Limited
The Institute for Financial Management Research (IFMR) Mezzanine Finance Private Limited (IFMR Mezz), a microfinance investment arm of the nonprofit IFMR, has provided funds worth INR 10 million (approximately USD 221,000) to Saija Finance Private Limited, a non-banking finance company providing microfinance services in northern India, in the form of unsecured, subordinated debt.