Source: Microfinance Information Exchange (MIX).
Search Results for: india
MICROCAPITAL.ORG STORY: International Association of Insurance Supervisors (IAIS), Consultative Group to Assist the Poor (CGAP), World Bank, International Labour Organization (ILO), FinMark Trust, and German Federal Ministry of Economic Cooperation and Development Launch Access to Insurance Initiative
A recent statement released by the International Association of Insurance Supervisors (IAIS) announced the launch of the Access to Insurance Initiative (A2II). The initiative will be launched by IAIS, in association with the Consultative Group to Assist the Poor (CGAP), World Bank, the International Labour Organization (ILO), FinMark Trust, and the German Federal Ministry of Economic Cooperation and Development (BMZ) [1].
MICROCAPITAL.ORG STORY: SEWA, SKS Microfinance and The Aryavart Gramin Bank Provide Alternative Power to the Rural Poor
A number of Indian MFI’s now provide loans for cost effective alternative power to people who have little or no access to electricity. With heavy reliance on kerosene and firewood, millions of homes have little or no light after dark. And the time spent collecting firewood or waiting in line to purchase kerosene leaves little time for income generating activities. This makes it difficult for many of the rural and urban poor to elevate themselves out of poverty.
MICROCAPITAL.ORG STORY: Trade Association Boss Claims China’s Regulations Impede Growth and Calls for Wholesale Microfinance Fund
A recent article by Ms. Wang Xinyuan in the Global Times, a daily Chinese newspaper, commented that despite a growing demand for microfinance in China, government regulations are inhibiting microfinance institutions´ (MFIs) growth [1]. Government regulations state that MFIs are not allowed to accept deposits to finance micro-loans. Additionally, interest rates for MFIs are capped at four times the prime lending rate, which currently stands at 5.31 percent [2].
MICROFINANCE PAPER WRAP-UP: Half the World is Unbanked, by Alberto Chaia, Aparna Dalal, Tony Goland, Maria Jose Gonzalez, Johnathan Morduch, and Robert Schiff
Written by Alberto Chaia, Aparna Dalal, Tony Goland, Maria Jose Gonzalez, Johnathan Morduch, and Robert Schiff, Published by the Financial Access Initiative in October 2009, available at: http://financialaccess.org/sites/default/files/110109%20HalfUnbanked_0.pdf
This paper uses improved data on financial usage, socioeconomic, and demographics to construct an accurate estimate of how many adults (older than 15 years) in the world do not use formal financial services. The data sources included the estimates of 2003 access to formal and semi-formal financial services (using data from banks, microfinance institutions (MFIs), and household surveys) from Patrick Honohan’s 2008 paper “”Cross-country variation in household access to financial services,” 2005 population, per capita income and urbanization data from the United Nation’s Human Development Index, and poverty data from the World Bank’s PovcalNet [1,2,3]. The authors specifically study “usage” of financial services as opposed to “financial access.”
PRESS RELEASE: Financial Access Initiative (FAI) at New York University (NYU) Estimates 2.5b Adults Have No Savings or Loan Account
Source: Financial Access Initiative.
MICROCAPITAL.ORG STORY: Algeria Launches Microfinance Projects to Prevent Recidivism Among Ex-convicts
The Ministry of National Solidarity, an office of the Algerian government, announced last week that it plans to provide microfinance loans to Algerian prisoners who will complete their sentences in the next six months. These microcredit loans aim to help ex-prisoners start their own businesses, which may aid them financially and ease their process of reintegrating into society. On a larger scale, the government hopes that this initiative will help reduce high recidivism rates among ex-convicts in Algeria. [1]
MEET THE BOSS: Interview with Robert Annibale, Global Director of Citi Microfinance (Part Two of a Two Part Series)
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.
MICROCAPITAL.ORG STORY: Developments in International Consumer Protection and Their Relevance to Microfinance Industry
Recent events in the global financial sector have provided the impetus for the launch of the Smart Campaign, a consumer protection campaign focusing on fair lending within the microfinance industry. Although consumer protection practices exist among many microfinance institutions, the Smart Campaign has given these principles an international focus. The architects of Smart Campaign can eventually draw from a dense tapestry of consumer protection laws, regulations, policies already developed in many countries. The challenge will be to adapt existing consumer protection laws, regulations and policies to the specific characteristics of microfinance activities.
WHO’S WHO IN MICROFINANCE: The Microfinance Gateway (www.microfinancegateway.org), Provided by World Bank’s Consultative Group to Assist the Poor (CGAP)
Launched in 2000, the Microfinance Gateway is self-proclaimed as “the most comprehensive online resource for the global microfinance community,” getting over four million page hits from 200 countries in 2008. The website is provided by the microfinance arm of the World Bank, the Consultative Group to Assist the Poor (CGAP), in an effort to advance knowledge and encourage innovation within the microfinance industry [1]. In May of this year, the site was re-launched, with interactive features such as ratings, reviews and comment boards. Also among the additions are “Hot Topic” pages with relevant links and overviews for microfinance-related investment, rural and agricultural finance, social performance, microinsurance, savings, technology and more. In an effort to further improve the site, CGAP has released the Microfinance Gateway User Survey 2009, which asks users to rate and comment on new features including accessibility, breadth and depth of information, job postings and the “attractiveness” of the new user interface [2].
MEET THE BOSS: Interview with Robert Annibale, Global Director of Citi Microfinance (Part One of a Two Part Series)
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.
MICROCAPITAL.ORG STORY: Unitus Hires Dr. Brigit Helms as New CEO
Unitus Inc., a Seattle based microfinance group, has hired Dr. Brigit Helms as its new chief executive. Dr. Helms will replace Geoff Davis, who stepped down as Unitus CEO in July 2008.[1]
MICROCAPITAL.ORG STORY: Developments in the Past Year of Microfinance Regulation Coverage by Microcapital.org
Microfinance regulation has provided rich fodder for reporting over the past twelve months of coverage by Microcapital.org. Nearly twelve months ago, in November 2008, Microcapital.org reported on the World Economic Forum’s Inaugural Summit on the challenges posed by regulatory frameworks as policy makers grappled with the question of how to advance microfinance. Since that time, there have been a number of international agencies as well as developed country governments involved in researching and collaborating on guidelines for the strengthening of microfinance regulation. On the other hand, there have also been doubts about the relevance of regulation to microfinance sector:
MICROCAPITAL.ORG STORY: Malaysia’s Perak State To Introduce Microfinance Programme That Will Target The ‘Hardcore Poor’ And Broadly Adopt Grameen Principles
It was recently reported in Malaysia’s ‘The Star’ online newspaper [1] that the government in the northern state of Perak on the Western Peninsula of Malaysia is to announce details of a ‘micro-credit financing model’ to help eradicate poverty during the state assembly sitting currently scheduled for 28 October 2009. Senior state minister or ‘Mentri Besar’ Dr Zambry Abd Kadir said the model would be broadly based on the Grameen methodology [2]. Dr Zambry was quoted as saying that the proposed microfinance model for Perak would focus on giving ‘the hardcore poor’ some financial assistance to start up small businesses. He also added the microfinance technique employed will have similarities to the microfinance schemes offered by Amanah Ikhtiar Malaysia (AIM) [3], one of the more established microfinance institutions in Malaysia. Previous Microcapital.Org publications on AIM have been set out in the Bibliography section below [4]. It is not currently known how much funding will be provided to support the Perak microfinance programme.
WHO’S WHO IN MICROFINANCE: Norwegian Microfinance Initiative (NMI)
The Norwegian Microfinance Initiative (NMI) is a strategic partnership between the Norwegian public and private sectors that invests in microfinance institutions (MFIs) in developing countries and provides professional assistance and technical support for these institutions. NMI’s investors have committed NOK 600 million (USD 100 million) for investment. There is an equal amount of public and private investment in the NMI. [1] Investors include Norfund (a development finance institution owned by the Government of Norway) and four private sector partners: Ferd, KLP, DnB NOR, and Storebrand.
NEWS WIRE: United Kingdom: Planned IPO by SKS Microfinance Brings Up Question of Mission Versus Profit
Source: The Times of London.
Complete article available online.
LONDON, October 22 – Plans for a stock market flotation by India’s largest private microfinance lender have further inflamed the debate over whether the industry should be putting profits or the wellbeing of its impoverished clients first.
SKS Microfinance specialises in lending small sums to very poor borrowers, many of them women, a process that it argues is helping to tackle poverty by funding small businesses.
The group, whose investors include Sequoia, the venture capital firm that famously backed Google, has talked to three investment banks — Citigroup, Credit Suisse and Kotak — about a listing in Mumbai that could raise up to $250 million (£150 million).
The deal, earmarked for the autumn, would be the first of its kind in India, one of the world’s biggest microfinance markets, and would offer investors exposure to a sector that many believe has huge potential. Some estimates have suggested that global demand for microcredit stands at about $250 billion, ten times the amount lent so far….
Remainder of article available online.
MICROCAPITAL.ORG STORY: The Smart Campaign Industry Leaders Call For Key Consumer Protection Initiatives
On October 20, 2009, Vikram Akula of SKS Microfinance in India, Elizabeth Littlefield of CGAP at The World Bank and Kurt Koenigsfest of BancoSol in Bolivia spoke during a panel discussion on how to instill consumer protection principles within the microfinance industry. Elisabeth Rhyne, managing director of the Center for Financial Inclusion at ACCION International, made introductory remarks and Robin Ratcliffe, Director of the SMART Campaign, moderated the discussion.[1]
MEET THE BOSS: Interview with Richard Weingarten, Managing Director of the Norwegian Microfinance Initiative (NMI)
The Norwegian Microfinance Initiative (NMI) is a partnership between the Norwegian public and private sectors that will invest in microfinance institutions (MFIs) in developing countries. NMI will also provide professional assistance and technical support for these institutions. NMI will invest through two investment funds: the NMI Global Fund, which invests primarily in microfinance investment vehicles (MIVs) focused on investments in Africa, Asia and Latin America, and the NMI Frontier Fund, which invests primarily in emerging MFIs in Sub-Saharan Africa and South Asia. Investors have committed NOK 600 million (approximately USD 100 million) to the two funds. Professional and technical assistance will be provided through the NMI Professional Assistance Facility, funded by Norad, Norway’s international development agency. Investors and strategic partners of NMI include Norfund (a development finance institution owned by the government of Norway) and four private sector financial services institutions: Ferd, KLP, DnBNOR, and Storebrand.
MicroCapital: What is the background of NMI?
Richard Weingarten: The Norwegian Microfinance Initiative is a new partnership between the government of Norway (through Norfund, Norway’s development finance institution), and four private sector financial services firms. Those four firms are Storebrand, a large insurance company; KLP, a large insurance and pension fund manager; DnBNOR, the largest bank in Norway, through Vital, its insurance subsidiary; and Ferd, which is a large private equity firm. This is a true public-private partnership in the sense that the private sector partners contributed capital equally with the public sector. Total capital is about USD 100 million. One of the main purposes of the partnership was for NMI, as a special Norwegian initiative, to become a significant contributor and participant in the international microfinance community.