by Mary Fu -

PAPER WRAP-UP: 2007 Microfinance Information eXchange (MIX) Global 100: Rankings of Microfinance Institutions

Published by Microfinance Information eXchange (MIX), 32 pages, available for viewing here.

MIX recently surveyed a global sample of 820 microfinance institutions (MFIs) that had a combined loan portfolio of USD 24 billion with over 53 million borrowers and 64 million savers. In addition to ranking MFIs along single categories (outreach, scale, profitability, efficiency, productivity, and portfolio quality), the 2007 edition of the report also utilizes new composite rankings to highlight the 100 top-performing MFIs that have achieved high outreach and low transaction costs, while maintaining transparency and boosting profitability. The report concludes that leading MFIs broke performance records on all fronts.

by Mary Fu -

MICROCAPITAL STORY: International Finance Corporation (IFC) and Wachovia Capital Markets, LLC Co-Arrange USD 40 Million for Mibanco in First International Syndication in Latin American Microfinance

International Finance Corporation (IFC), a member of the World Bank Group, and Wachovia Capital Markets, LLC, a subsidiary of Wachovia Corporation, have co-arranged a USD 40 million syndicated financing agreement for Mibanco (Banco de la Microempresa S.A.), a leading private commercial microfinance bank in Peru. As the first international syndication for a microfinance institution in Latin America, this transaction will allow Mibanco to offer longer loan maturities to its clients, as well as reach more rural customers.

by Elizabeth Nelson -

MICROCAPITAL STORY: State-owned Indian Bank of Baroda (BoB) Partners with Centre for Micro Finance (CMF) for Microfinance Initiative in Dungarpur

As part of its initiative to reach the unbanked Indian population with microfinance, state-owned Bank of Baroda (BoB) has signed a memorandum of understanding (MoU) with the Centre for Micro Finance (CMF), a microfinance research institute. As of March 2007, the Bank of Baroda had 38,000 employees and 2,700 branches in 21 countries. It had USD 36.4 billion (INR 143,146 crore or 1.43 trillion) in total assets and a return on assets (ROA) of 0.72 percent.

by the MicroCapital Team -

MICROCAPITAL STORY: Indian Politician Sharad Joshi Questions Track Record of NABARD and Microfinance in General

Sharad Joshi, founder of Shetkari Sanghatana (Farmers Movement) and Member of Rajya Sabha (the upper house of the Indian Parliament), questions the recent emphasis on microfinance by the Indian government. He contends that microfinance has not been a great success in India and that increasing government encouragement of microfinance is not justified. His words follow:

by Amy Rennison -

MICROFINANCE EVENT: PlaNet Finance and the American Conference Institute to Host the Global Microfinance Investment Congress 2008

GLOBAL MICROFINANCE INVESTMENT CONGRESS 2008

MAY 14-16, NEW YORK CITY, USA

Planet Finance, the French non-profit company that assists microfinance institutions (MFIs), and conference organiser, the American Conference Institute are hosting a three-day event on investing in microfinance. Called the Global Microfinance Investment Congress, the event convenes Microfinance Investment Vehicles (MIVs), Commercial Banks, Insurance Companies, Government Authorities and MFIs to discuss the future of the projected USD 250 Billion microfinance industry. This is the second event in a series, the first of which will be held in Paris on 21-22 January 2008, as reported by MicroCapital.

by Mary Fu -

MICROCAPITAL STORY: ACCION Gateway Microfinance Investment Vehicles Fund (GMIV) Invests in Lok Capital, AfriCap

ACCION International’s Gateway Microfinance Investment Vehicles Fund (GMIV) invested in Lok Capital, raising its total resources from USD 12 million to USD 14.5 million, and participated in the recapitalization of AfriCap Microfinance Investment Company, helping raise its total capital from USD 14 million to USD 50 million in its second round of investment.

by Steven Craig -

MICROCAPITAL STORY: Mifos, a Freely Available Open-source Management Information System for Microfinance Institutions

The New York Times recently published an article highlighting the Mifos Initiative; a microfinance-focused open-source software development community that is addressing the growing information management needs of microfinance institutions (MFIs) by engineering and distributing a freely available management information system (MIS). Their product, called Mifos, provides functionality that helps MFIs run efficiently and achieve scale in respect to data collection and management. MicroCapital first covered the Mifos framework in July 2005 while it was being developed in conjunction with a pilot credit bureau project in Morocco.

by Elizabeth Nelson -

MICROCAPITAL STORY: Microfinance Investor Netherlands Development Finance Company (FMO) to Establish $125m Fund to Support Small and Medium-sized Enterprises (SMEs) in India

The Netherlands Development Finance Company (FMO), a development bank founded by the Dutch government and business community in 1970, plans to establish a USD 125 million fund in India which will finance family-owned small and medium-sized enterprises (SMEs). The proposed Banyan Tree Fund will receive a USD 25 million contribution from FMO. The bank is in talks with Indian investors and other international development finance institutions to fund the balance amount.

by Elizabeth Nelson -

MICROCAPITAL STORY: Standard Chartered Bank to Increase Microfinance Investment, Government Restrictions Limit Growth

Standard Chartered (StanChart) Bank, India’s largest international bank, will increase its involvement in microfinance in the coming year, according to CEO-India of StanChart Bank Neeraj Swaroop. The bank plans to boost its investment in the sector and the number of its partnerships with microfinance institutions (MFIs). “The aim is to increase our exposure from current level of close to Rs 100 crore (USD 25.36 million) to about Rs 500 crore (USD 126.8 million) by December 2008,” Mr. Swaroop said.

by Amy Rennison -

MICROCAPITAL STORY: The Institute for Financial Management and Research (IFMR) Trust to Launch USD 40 million Fund for Start-Up Microfinance Institutions in India

The Institute for Financial Management and Research (IFMR) Trust of India is to establish a USD 40 million investment vehicle called the Microfinance Classic Fund to provide funding to early-stage microfinance institutions (MFIs). A group of investors including ICICI Bank, India’s second-largest bank with total assets of USD 79 billion, is supporting the IFMR Trust with the initiative. The fund will have both domestic and offshore fund status and it will be registered overseas to facilitate investments from international institutions.

by Elizabeth Nelson -

MICROCAPITAL STORY: Indian Government-owned Bank of Baroda to Establish Microfinance Division

The Bank of Baroda, a state-owned Indian bank, plans to establish a microfinance division as part of its strategy to service the rural areas of India that are largely unreached by financial institutions, according to Chairman and Managing Director of Bank of Baroda, Anil K. Khandelwal. As of March 2007, the Bank of Baroda had 38,000 employees and 2,700 branches in 21 countries. It had USD 36.4 billion (INR 143,146 crore or 1.43 trillion) in total assets and a return on assets (ROA) of 0.72 percent.