Source: San Francisco Chronicle
Original news wire here
Global microfinance leaders met Wednesday in San Francisco to discuss a cutting-edge strategy to get the world’s poorest borrowers to repay their loans: Keep them healthy.
Search Results for: Microfinance Institutions Bill India
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.
MICROCAPITAL STORY: The Global Financial Crisis And Microfinance
As financial markets struggle internationally, some microfinance institutions (MFIs) have begun to see downstream effects in the form of rising lending rates. Royston Braganza, chief executive officer of Grameen Capital India observed “the demand for funds is high because microfinanciers have drawn up aggressive growth plans” and “the cost of funds remains a concern due to the 2 percent increase in just the last quarter.” These factors could make fundraising very difficult for microfinance institutions in cases where they have not built up proper reserves according to K. Vinod Kumar, Assistant Vice-President of member services at SKS Microfinance.
MICROCAPITAL STORY: Indian Finance Minister Promises Credit to North Eastern Region
The Finance Minister of India stated that the North Eastern region of India would receive an increased flow of credit from the central government, addressing the Special Summit on Banking, Industries and Credit Issues in the North Eastern Region organised by the Ministry of Development of North Eastern Region (DoNER) at Vigyan Bhavan. The Finance Minister, Chidambaram, stated that although the North Eastern region is not currently receiving enough credit, it will begin to. The Summit was attended by the Minister of Development of North Eastern Region (DoNER), the deputy Governor of Reserve Bank of India, the Chairman of the State Bank of India and other top officials of line ministries and financial institutions.
WHO’S WHO IN MICROFINANCE: A Little World
A Little World (ALW) is a company which creates technologies used in extending branchless banking services to the poor. While ALW is a for-profit corporation, its vision is to “touch a billion people through innovative technologies and alliances at the bottom of the pyramid for delivering multiple financial services at the lowest cost through mainstream financial institutions.” Currently, the company’s main project is the ZERO platform, which provides banking technologies via mobile phones.
NEWS WIRE: United States: Alex Counts of the Grameen Foundation “Reimagines” Microfinance in the Stanford Social Innovation Review
Source: Stanford Social Innovation Review.
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.
WHO’S WHO IN MICROFINANCE: The Legatum Group
The Legatum Group, founded in 2006 from the de-merger of Sovereign Global, is a collection of investment organizations based in Dubai, United Arab Emirates. The separate companies comprising Legatum include Legatum Capital, a global investment firm; Legatum Global Development, a socially-responsible investment firm that also provides grants and policy advocacy services to promote sustainable development; the Legatum Center for Development and Entrepreneurship at MIT; and the Legatum Institute, which is an independent policy advisory firm.
MICROCAPITAL STORY: Indian MFI Association Sa-Dhan to Host Policy Forum Discussing Expansion of Microfinance in India’s Eastern Provinces, NABARD and SIDBI to Attend
Sa-Dhan, India’s largest association of microfinance institutions recently announced it would host a policy forum bringing together key stakeholders of Indian microfinance to conceptualize an expansion plan for microfinance in India’s eastern provinces. The two-day policy forum, titled “Breaking the vicious cycle of poverty: synergy between micro-finance and livelihood,” will examine the current state of microfinance in eastern India, particularly the states of Orissa and West Bengal, and identify the key challenges that impede regional growth there.
MICROCAPITAL STORY: Philip Vassiliou of Legatum Capital Publishes Editorial Supporting For-Profit Microfinance in The Economic Times
In a recent Economic Times editorial, Philip Vassiliou, managing director of Legatum Capital, an international investment firm, argues that, “to reach its full potential, the microfinance sector must embrace free market principles of competitive pricing and commercial incentives.” He also believes that “modifying these incentives, however noble the intention, will only damage the natural development of the sector.” His comments come at a time of fierce debate over the benefits of commercial microfinance.
MICROCAPITAL STORY: Lok Capital and the Dell Foundation Announce Investment in Indian Microfinance Organization Arohan
Lok Capital, a microfinance venture capital fund focused on India, and the Dell Foundation, a charitable organization, have announced an investment in Arohan Financial Services Limited, a for-profit Indian microfinance institution (MFI). The size of the equity investment was not disclosed. Arohan offers microcredit and credit-linked insurance to urban women in Kolkata, and it plans to use the funds to expand operations to other urban centers in eastern India and to expand its product offering.
MICROCAPITAL STORY: United States Electronic Payment Company Obopay and Grameen Solutions of Bangladesh Partner in ‘Bank A Billion Initiative’ to Provide Microfinance Services through Mobile Phones
Obopay and Grameen Solutions have announced the new Bank A Billion Initiative, which aims to provide microfinance services through cell phones. The project, which will begin in Bangladesh and Mumbai, India, will allow customers to complete a number of financial transactions, including savings, money transfer, payments and micro-credit, using only their cell phones starting in October 2008.
MICROCAPITAL STORY: Following Strategic Review, the Gates Foundation to Focus on Microsavings Within Microfinance Initiative
The Bill and Melinda Gates Foundation, a charitable organization that was created in 2000 with an endowment of USD 35.9 billion, plans to direct hundreds of millions of dollars to promoting savings programs designed for the poor over the coming years, reports the Wall Street Journal. Following a review of its existing microfinance grants and a broader study of its financial services strategy, the Gates Foundation decided to focus its efforts on promoting savings in the developing world.
MICROCAPITAL STORY: Nobel Laureate Muhammad Yunus Speaks Out Against For-Profit Microfinance from Asia-Pacific Microcredit Summit
Muhammad Yunus, the microfinance pioneer and winner of the Nobel Prize for founding the Grameen Bank, spoke out against the growing trend of commercial microfinance. In an interview with CNNMoney.Com, Yunus chastised those involved with for-profit microfinance by saying that “poor people should not be considered an opportunity to make yourself rich.” These remarks come at the start of the Asia-Pacific Regional Microcredit Summit 2008 in Bali Indonesia.
MICROCAPITAL STORY: Indian Government Agency NABARD (National Bank of Rural Development) Sponsors Trip by Indian Banking Representatives to Observe Microfinance in Sri Lanka
India’s NABARD (National Bank of Rural Development) plans to take a group of 20 individuals that represent India’s largest financial institutions to Sri Lanka to observe microfinance methods employed by the country’s financial institutions. The trip will be hosted by NABARD’s Regional Training College, with the purpose of acquainting Indian bankers with the microfinance concept. Individuals were chosen from a wide range of India’s financial institutions, including commercial banks, regional rural banks, cooperative banks and NABARD itself. Names of specific financial institutions represented were not available. In addition to NABARD’s support, the trip was facilitated by Sri Lankan microfinance institution Sanasa Development Bank.
MICROCAPITAL STORY: Indian Information Technology Firm Gradatim Launches Microinsurance Technology Platform
India-based information technology firm Gradatim IT Ventures recently announced the launch of “MF-Insure”, a new technology platform designed to consolidate and simplify various business operations of microinsurance providers. Details on MF-Insure’s design features are not yet available. However, a platform that appears to be a predecessor is described on the company’s website as a product that streamlines business processes in the areas of Billing and Collection, Insurance Policy Servicing, and Claims.
MICROCAPITAL STORY: HSBC Ammanah partners with Islamic Relief to Launch Microfinance Program in Pakistan
HSBC Amanah, the global Islamic banking division of HSBC group, has partnered with Islamic Relief, an international development and relief organization, to offer Islamic Microfinance in Pakistan. Islamic microfinance, just like Islamic banking, will provide financial services to devout Muslims in accordance with the Shariah, the Islamic law. HSBC Amanah will provide both training and funding for Islamic Relief’s microfinance projects, starting in Rawalpindi, Pakistan.
MICROCAPITAL STORY: Indian Banking Giant HDFC (Housing Development Finance Corporation) to Expand Microfinance Arm with 8 New Branch Offices
Indian bank HDFC (Housing Development Finance Corporation) has announced plans to open eight additional branches solely dedicated to microfinance before December 2008. The expansion would increase its microfinance branch offices from four to twelve. HDFC first ventured into microfinance in February 2007 with the launch of its microfinance branch, as reported by MicroCapital. When designing its microfinance services, the bank modeled lending after India’s self-help group linkage model. Its microfinance product suite includes savings, credit, insurance, and remittances.