by Radhika Chandrasekhar -

MICROFINANCE EVENT: Developing Inclusive Financial Systems hosted by CGAP on November 9-13, 2009 in Dakar, Senegal (in French)

Event Name: Developing Inclusive Financial Systems: The CGAP Course for Funders of Microfinance

Event Description: This course provides participants with knowledge of the microfinance industry and tools needed to make financing decisions. It will use case studies and group work based on real-life situations. It also involves a visit to a MFI. Those who opt to attend the full course (5 days) will be able to attend both sessions and practical application of principles learned, while those staying for the short course (3 days) will receive an overview of the fundamentals of microfinance.

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: Article in US Banker Magazine Refers To Microfinance Banana Skins Report 2009 And Analyses The Impact Of Global Financial Crisis On Microfinance Sector Based On Observations By Citi Microfinance, CGAP And ShoreBank International Ltd.

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.

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: CGAP Blogger Analyses Ongoing Problem Of Poor Repayment And Multiple Lending By Microfinance Institutions In Indian State Of Karnataka

In a CGAP blog entitled ‘Multiple borrowing or multiple lending – who is to blame for debt fatigue?’ [1] Mr N Srinivasan explores the microloan repayment problem that has affected some districts in the Indian state of Karnataka. The issue has been covered in a previous article on the Wall Street Journal, which became of the subject of a recent Microcapital.Org Story [2].

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: CGAP Microfinance Blogger Observes That Ratios May Not Accurately Reflect Real Strength Of Microfinance Institutions

In a blog posted by Mr David MacDougall on the CGAP Microfinance Blog [1] entitled ‘The answer isn’t in the spreadsheet…How to assess the real strengths of a microfinance institution’ [2], Mr MacDougall was quoted as stating that ‘The financial crisis has made investors and asset managers increasingly sensitive to risk in all areas of finance, including microfinance. Lenders and investors worry about whether MFIs can survive. They weigh the risks by applying sophisticated analysis to the MFIs’ financial performance and asset quality. A spreadsheet with numerous ratios and graphs serves as the standard tool. Unfortunately, such efforts can lead to erroneous conclusions because their focus isn’t wide enough.’ Instead of focusing on ratios, which can have a limited meaning, Mr MacDougall felt that analysts should instead focus on understanding the activities, context and management of a MFI. His thoughts are elaborated below.

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: CGAP Consultant Deborah Burand Blogs About What Subprime Mortgage Securitizations Can Teach Microfinance Participants About The Sales Of Microfinance Loan Portfolios

Ms Deborah Burand [1], a consultant for CGAP, recently posted a comment on the CGAP Microfinance Blog [2] entitled ‘What subprime mortgage securitizations can teach us about sales of microcredit portfolios’ [3]. Ms Burand suggests that there is a lot that microfinance participants can learn from the subprime crisis in the US. In particular, she highlights the problems with the ‘originate to distribute’ model of securitization [4], [5], [12] and the role of this technique in exacerbating the subprime crisis. Under the ‘originate to distribute’ model, banks often sell the loans on their books in order to remove these assets (and the credit risks associated with these assets) from their balance sheets. Loans are seldom held to maturity under this model with the result that banks are able to generate more loan assets within a relatively shorter time frame. The lessons that can be learnt by microfinance participants from the subprime crisis were the subject of a previous Microcapital.Org White Paper which is set out in the Bibliography section below [6].

by the MicroCapital Team -

MICROCAPITAL STORY: CGAP Microfinance Photography Contest Opens for Entries

Over the past three years, the CGAP Microfinance Photography Contest has brought the work of professional and amateur photographers worldwide to a range of venues. Winning photos from the 2008 contest are currently on display at Citigroup Centre in London. We encourage you to share your vision of microfinance with the world by participating in this year’s contest.

by Uyen Tran -

MICROFINANCE PAPER WRAP-UP: The Role of Mobile Operators in Expanding Access to Finance, by Ignacio Mas and Jim Rosenberg for the Consultative Group to Assist the Poor (CGAP)

Written by Ignacio Mas and Jim Rosenberg for the Consultative Group to Assist the Poor (CGAP), released May 2009 as a brief, 4 pages, available at:

http://www.cgap.org/gm/document-1.9.34485/Mobileoperators_Brief.pdf

Banks and mobile operators have two different perspectives on mobile banking. Banks view it as a way to enhance services to existing customers.  Mobile operators, on the other hand, focus more on reaching the mass market and unbanked. This brief seeks to answer the question of whether the company that owns the mobile network, the mobile operator, needs to provide financial services. It assesses the capacity and incentives for mobile operators to provide financial services. The authors conclude that mobile operators do not necessarily need to “own” the financial services associated with mobile banking.

by Sally Levy -

MICROCAPITAL STORY: CGAP (Consultative Group to Assist the Poor) and the GSM Association Release Mobile Money Market Sizing Study which Estimates Mobile Financial Services will Reach $5b in 2012

CGAP (Consultative Group to Assist the Poor) and the GSM Association (GSMA) will publish the results of a study estimating the size of the mobile financial market at the Mobile Money Summit in late June 2009. It will be announced that the CGAP-GSMA Mobile Money Market Sizing Study found that the market for mobile financial services could increase to USD 5 billion by 2012.

by Uyen Tran -

MICROFINANCE EVENT: Mobile Money Summit 2009 in Spain Hosted by Consultative Group to Assist the Poor (CGAP), Department for International Development (DFID), International Finance Corporation (IFC), and Groupe Speciale Mobile Association (GSMA)

MOBILE MONEY SUMMIT 2009

22-25 JUNE 2009, Fira Montjuï, BARCELONA, SPAIN

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

by the MicroCapital Team -

CGAP Microfinance Dealbook: May 2009 Transactions

The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for May 2009:

by Jaclyn Berfond -

MICROCAPITAL STORY: CGAP, Dell Foundation, Ford Foundation and MIX Market Announce New Social Performance Reporting Award Winners AMK, FINCA Peru, Prisma Peru and Asasah

The winners of a new Social Performance Reporting Award were announced at the Annual Social Performance Task Force Meeting in Madrid, Spain. AMK in Cambodia, FINCA Peru, and Prisma Peru received the Gold Award, and Asasah from Pakistan received the Silver Award.

by Zoran Stanisljevic -

PAPER WRAP-UP: 2008 Microfinance Technology Survey, by the Consultative Group to Assist the Poor (CGAP)

A joint initiative of the Consultative Group to Assist the Poor (CGAP) and the EU/ACP Microfinance Program, published by Consultative Group to Assist the Poor (CGAP), March 2009, CGAP Technology Survey, 15 pages, available at: 

http://www.cgap.org/gm/document-1.9.34552/2008%20Microfinance%20Technology%20Survey.pdf

by Sally Levy -

MICROFINANCE EVENT: Consultative Group to Assist the Poor (CGAP) Webinar on Microfinance Information Systems (MIS) for Microfinance 3 June 2009

Event Name: CGAP webinar on MIS for Microfinance

Event Description: Review the results of a new survey on Microfinance Information Systems (MIS) for Microfinance Institutions (MFIs) and hear from some of the leading practitioners in the field.

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

Cost: Free

Summary of Event: The results of a recent survey on Microfinance Information Systems (MIS) will be discussed with the opportunity for questions during the webinar. This will be via a webcast online at www.cgap.org 

by Zoran Stanisljevic -

PAPER WRAP-UP: Microfinance Funds Continue to Grow Despite the Crisis, by the Consultative Group to Assist the Poor (CGAP)

By Xavier Reille and Jasmina Glisovic-Mezieres, CGAP, with research assistance from Yannis Berthouzoz, Symbiotics, published by Consultative Group to Assist the Poor (CGAP), April 2009, CGAP Brief, 4 pages, available at: 

http://www.cgap.org/gm/document-1.9.34437/CGAP%20Brief_MIV_FinancialCrisis.pdf

by the MicroCapital Team -

CGAP Microfinance Dealbook: April 2009 Transactions

The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for April 2009:

by the MicroCapital Team -

CGAP Microfinance Dealbook: March 2009 Transactions

The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for March 2009:

 

by Zoran Stanisljevic -

PAPER WRAP-UP: Eastern Europe and Central Asia Microfinance Analysis and Benchmarking Report, 2008 by the Consultative Group to Assist the Poor (CGAP) and the Microfinance Information Exchange, Inc. (MIX)

By Ralitsa Sapundzhieva and Olga Tomilova, published by the Microfinance Information Exchange Inc. (MIX), February 2009, 31 pages, available at:
http://www.themix.org/sites/default/files/2008%20Eastern%20Europe%20Cent…

by Laura Anderson -

MICROCAPITAL STORY: Consultative Group to Assist the Poor (CGAP) Relaunches Microfinance Gateway with New Interactive Services

Microfinance Gateway, an online resource for the global microfinance community, and a service of CGAP, has announced that it has revamped its website, creating a new look, improved navigation and new interactive features.  The site will have an interactive library of over 7,000 microfinance documents with ratings and reviews, a job board with the capacity to post jobs or receive emails about jobs, an interactive event calendar, daily news, announcements, blogs, and comment boards.