by Bharathi Ram -

MICROCAPITAL STORY: ACLEDA Bank Receives $850k in Funding From German Development Bank to Build Microfinance Training Center in Cambodia

The Association of Cambodian Local Economic Development Agencies (ACLEDA Bank), a Cambodian based Microfinance organization has received grant worth USD 850 thousand from the German Development Bank Kreditanstaltfür Wiederaufbau (KfW) to build a new Microfinance Training Center in Cambodia. In a press release found on the Phnom Penh Post, Mr. In Channay, the president of ACLEDA Bank said the funds would be used to meet operational costs of the training center and to provide short-term scholarships and fellowships to its students for a three year period. Active in all 24 provinces/towns of the Kingdom of Cambodia, the ACLEDA Bank has 220 branch offices with an asset base of USD 473 million, total loan portfolio of USD 315 million and 185, 492 active borrowers.

by Lori Curtis -

MICROCAPITAL STORY: Mercy Corps Recognized by Fast Company for its Innovative Microfinance Program “The Bank of Banks”

Fast Company Magazine named Mercy Corps as one of its 2009 Social Enterprises of the Year, recognizing the work it has done this past year as one of the “bold and timely ideas that wow us”. Mercy Corps is praised as “the bank of banks” for buying a struggling Balinese bank and reopening it as an organization that would “cut the costs and inefficiencies” of microfinance institutions (MFIs) and provide them capital, financial tools and tech platforms. Mercy Corps had also previously been recognized as one of the 45 Social Entrepreneurs Who Are Changing the World as a part of Fast Company’s 2008 Social Capitalist Awards. ACCION International, another organization involved in microfinance, was honoured with this recognition for the fifth year in a row. The other organizations that were honoured as 2009 Social Enterprises of the Year include Do Something, The Academy for Urban School Leadership, DataDyne, Civic Ventures, The Institute for OneWorld Health, The Acumen Fund, Husk Power Systems, and Hopelab.

by Iyanna Holmes -

MICROFINANCE EVENT: Financial Research Associates Hosts the 3rd Annual Microfinance East

3RD ANNUAL MICROFINANCE EAST: THE INVESTMENT OPPORTUNITY
 
JANUARY 29-30, 2009, THE HARMONIE CLUB, NEW YORK, NY
 
Financial Research Associates (FRA), an organization that provides information and networking opportunities through conferences and seminars, will host the 3rd Annual Microfinance East Conference in January.

by Lori Curtis -

MICROCAPITAL STORY: Study Reveals Ghanaian Women Still Face Challenges Accessing Microfinance

A recent study funded by the Business Sector Advocacy Challenge Fund (BUSAC) has revealed that rural women accessing microfinance in Ghana continue to face barriers when compared with men. Dr. Irene S. Egyir, Lead Researcher on the project and Lecturer at the University of Ghana, spoke at a sensitization workshop saying that although women were participating in productive sectors, their lack of access to microfinance made it difficult for them to play their roles effectively, reported in The Ghanaian Journal. The research indicated that though most financial institutions had embraced the challenge of assisting micro businesses, females continued to receive less access to such credits.

by the MicroCapital Team -

MICROCAPITAL STORY: How Far Will the Credit Crunch Affect the Microfinance Industry?

At the Worldwide Microfinance Forum, 1st-2nd October in Geneva, the investment managers and financial specialists of the industry met to discuss how they could improve their returns. The mood was upbeat, with a general agreement that this emerging sector has a growing and buoyant future ahead of it, despite the panic and events that were unfolding in the mainstream financial world as the conference took place.

by Scott Everett -

MICROCAPITAL STORY: How Will The Center For Financial Inclusion Positively Affect Commercial Microfinance?

ACCION International, a microfinance organization founded in 1961 to address the desperate poverty in Latin America’s cities, has recently launched The Center For Financial Inclusion , a collaborative effort to promote commercial microfinance and simultaneously ensure that the needs of poor clients are being met. A key aspect of the Center is to connect the expertise of the non-profit, private and academic sectors to enhance the quality of microfinance. It is a sign of the times as commercial banks have been increasingly involved in socially responsible investing and the debate about what role for-profit activity should play in the microfinance sector continues to intensify.

by Lori Curtis -

MICROCAPITAL STORY: Pilot Project Koshi Yomuti to Become Namibia’s First Microfinance Bank with Funds from GTZ, FIDES, Incofin, Swiss Microfinance Holding and Investisseur et Partenaire Pour le Development

Koshi Yomuti, a six year old microfinance project whose name means “banking under a tree” will become Namibia’s first commercial micro finance bank with seed capital of Euro 2.3 million from the German Technical Cooperation (GTZ), a federally owned international cooperation enterprise based outside of Frankfurt, Germany. The grant money will be used to create the first purely micro finance banking institution in Namibia upgrading the Koshi Yomuti/Ohangwena Pilot Project to a commercial microfinance bank. The bank will be owned by foreign investors, including KfW (on behalf of GTZ), FIDES (Switzerland), Swiss Microfinance Holding (Switzerland), Incofin (Belgium), and Investisseur et Partenaire pour le Development (France).

by Greg Casey -

MICROCAPITAL STORY: Examination of Fitch Rating Standards for Microfinance Institutions

The credit ratings assigned to corporations affect the cost of borrowing money in international capital markets. Microfinance institutions (MFIs) are no exception. As more and more MFIs look to raise money from capital markets, their credit ratings will become increasingly important in their ability to provide financial services at a low cost. Fitch Ratings is a premier international ratings agency, which has evaluated a number of MFIs around the world. This story will examine how Fitch approaches ratings of microfinance.

by Greg Casey -

MICROCAPITAL STORY: Foromic Conference, hosted by the Inter-American Development Bank, to Focus on Responsible Finance, Response to International Crises, Rural Finance, Housing, Technology, Venture Capital and the Importance of Networks

On October 8-10, the Inter-American Development Bank (IDB) will host the sixth edition of the Forum on Microenterprise (FOROMIC). Aside from a general discussion on microfinance in Latin America and the Caribbean, the conference will focus on responses to international crises, rural finance, housing, technology, venture capital and the importance of networks. To learn more about this event, please read this previous MicroCapital story.

by Greg Casey -

MICROFINANCE EVENT: Global Summit on Microfinance as an Alternate Asset Class for Institutional Investors

GLOBAL SUMMIT ON MICROFINANCE AS AN ALTERNATIVE ASSET CLASS FOR INSTITUTIONAL INVESTORS

OCTOBER 29-30, MILLENIUM KNIGHTSBRIDGE HOTEL, LONDON, ENGLAND

The conference will focus on the opportunities and challenges for microfinance investments as the industry becomes larger and converges with mainstream financial institutions. Specific topics will include the current state of the microfinance sector, the risks and rewards for institutional investors involved in microfinance, an evaluation of rating metrics currently employed, lessons and opportunities taken from other asset classes, good governance in microfinance institutions (MFIs), and developing a universal framework for evaluating social returns. A complete agenda can be found of the conference website.

by Yrenilsa Lopez -

MICROCAPITAL STORY: India’s Stricter Capital Norms may Prompt more Efficient Financial Structures for Microfinance Institutions (MFIs)

India’s present growth rate for its microfinance sector has been recorded at 130 percent, with prospects of continued growth and increased demand in coming years. Microfinance Institutions (MFI) in India have been responsible for Rs 10,000 crore (approx. USD 2.23 billion) in loans to low-income individuals and small businesses. Currently a sector consisting of about 135 MFI’s throughout the country, the government of India has begun introducing tighter norms for the capital adequacy ratios (CAR) of its microfinance lenders, which are expected to be enacted within the coming year.

by Greg Casey -

MICROCAPITAL STORY: Micro Finance Bank of Azerbaijan (MFBA) Renamed Access Bank

According to the Azeri Press Association, the Micro Finance Bank of Azerbaijan (MFBA) has been officially renamed Access Bank. The name stems from Access Holding, which controls a 16.53 percent stake in the microfinance institution (MFI). The news comes after MFBA recently attracted increased funding from the IFC and British Petroleum (BP).