by the MicroCapital Team -

MICROFINANCE EVENT: Independent Evaluation Group of International Finance Corporation (IFC) to Hold Panel at the World Bank on Its New Book “Financing Micro, Small, and Medium Enterprises through Financial Intermediaries”

PANEL DISCUSSION ON “FINANCING MICRO, SMALL, AND MEDIUM ENTERPRISES THROUGH FINANCIAL INTERMEDIARIES”

APRIL 11, 2008, WASHINGTON, UNITED STATES

The Independent Evaluation Group (IEG) at the International Finance Corporation (IFC) and the World Bank InfoShop Public Information Center will host a panel discussion at the launch of the IEG Study on Financing Micro, Small, and Medium Enterprises through Financial Intermediaries. The event will bring together evaluators, financiers, practitioners and a microfinance bank to will talk about micro, small and medium enterprises (MSMEs) in the developing world. The chair of the discussion will be Marvin Taylor-Dormond, Director of IEG. The panelists for the discussion include:

by Melissa Duscha -

MICROFINANCE EVENT: The FT and IFC 2008 Sustainable Banking Awards for Microfinance Institutions and Investors Extended Entry Deadline to March 10

 The 2008 Financial Times Sustainable Banking Awards has extended their submission deadline to March 10. The awards will be presented in London on June 3, 2008 following the 2008 FT/IFC Sustainable Banking Conference.

by Melissa Duscha -

MICROFINANCE EVENT: FT and IFC Launch 2008 Sustainable Banking Awards for Microfinance Institutions and Investors

The 2008 Financial Times Sustainable Banking Awards will be held in London on June 3, 2008. Started in 2006, in partnership with the World Bank’s International Finance Corporation (IFC), the FT Sustainable Banking Awards recognizes banks that have shown leadership and innovation in integrating social, environmental and corporate governance objectives into their operations.

by Jennifer Lee -

MICROCAPITAL STORY: IDB Makes Donation to Billion Dollar Standard & Poor’s

The Inter-American Development Bank (IDB) will subsidize USD 405,000 of a Standard & Poor’s (S&P) project to develop a globally accepted rating system of microfinance institutions (MFIs). S&P is a rating service and a division of McGraw-Hill Companies. The actual funding will be by the Multilateral Investment Fund (MIF), a fund administered by the IDB to encourage private sector development of micro-enterprise in Latin America and the Caribbean (LAC).

The stated goal and rationale of this project is to increase capital flow to micro-banks. However, with MIF’s public money subsidizing a company with over USD 1 billion in annual profits, such justification is thin. Top micro-banks do not suffer from too little investment, but rather there is now far too much money chasing too few micro-banks.  Has the IDB gotten it exactly wrong?

by Sophie Kim -

MICROCAPITAL STORY: Forbes’ Special Feature on Private Investment in Microfinance Includes Top 50 Microfinance Institutions

Forbes, a American business and financial news magazine, presented the list of top 50 microfinance institutions (MFIs) of 2007 in its special feature on the private investment in the microfinance industry.

by Elizabeth Nelson -

MICROCAPITAL STORY: Microfinance Debate Featured on BusinessWeek.com, Vikram Akula of SKS Microfinance and Chuck Waterfield of Microfin Weigh In

Following an article in the December 13 edition of Business Week entitled “The Ugly Side of Microlending,” Business Week’s website now features a point-counterpoint which asks the question: Does microfinance helps low-income entrepreneurs in developing economies more than it hurts them? Vikram Akula of Indian microfinance bank SKS Microfinance Private Ltd. argues in favor of the proposition, while Chuck Waterfield of Microfin argues that the banks are generally more harmful than beneficial to low-income entrepreneurs. The core issue of the debate centers on whether the banks are usurious in the interest rates they charge.

by Steven Craig -

MICROCAPITAL STORY: Microfinance through Wal-mart? Banco Wal-mart de México Adelante Opens in Mexico

Wal-mart de México (Walmex), a subsidiary of the world’s largest retailer, has started its own bank, Banco Wal-mart de México Adelante. According to Reuters, Banco Wal-mart opened nine branches this month, with a total of 16 planned for November. Currently, the branches are offering free savings accounts and personal credit for in-store purchases up to 50,000 Mexican pesos (USD 4,450 equivalent). The bank is planning on opening as many as 80 branches in 2008 and will launch checking accounts, credit cards, payroll accounts and loans for small companies.

by the MicroCapital Team -

NEWS WIRE: Brazil & India: Microfinance Is Both a Lifeline For Millions And a Valuable Asset Class

Source: Financial Times.

Original article available here.

SÃO PAULO and NEW DELHI, November 14 – When the Progesar Foundation microfinance office offered to lend her 4,000 pesos at an interest rate of 5 per cent per month, Nilda Peralta could hardly believe her luck. “It seemed there was a trick because the rate they were charging was so low,” says the 57-year-old Argentine shopkeeper. “If I had borrowed from the money lenders I would have had to pay 28 per cent.”

by Steven Craig -

MICROCAPITAL STORY: PBS Program “NOW” Asks “Who’s Making Money from Microcredit?”

The Public Broadcasting Service (PBS) program, “NOW,” covered a story in September 2007 on microfinance entitled “Who’s Making Money from Microcredit?” The twenty minute segment explores the financial success of Mexican microfinance institution (MFI) Compartamos and its April 2007 initial public offering (IPO) that generated over USD 400 million for investors. Supporters of the Compartamos IPO hail the transaction as an achievement that signifies the emergence of the microfinance industry in mainstream financial markets. However, critics accuse the microfinance lender of exploiting the poor in an effort to reap profits.