Event Name: Mobile Money Transfer (MMT) Americas Conference and Expo
Event Date: March 8 – March 11, 2010
Event Location: Cancun, Mexico
Event Website: http://www.mobile-money-transfer.com/americas
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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:
In surveying the landscape of microfinance regulation, the authors make a threshold distinction between prudential and non-prudential regulations. Prudential regulations have dual objectives, the soundness of the financial sector as a whole and the protection of individual deposits. They are typically complex, burdensome to meet and require the oversight of a central financial authority. The current discussion surrounding microfinance regulation has emphasized prudential regulations. The authors believe that in certain circumstances, however, “the most pressing issues are non-prudential – how to enable MFIs to lend legally.” (pg. 4.). Non-prudential regulations are concerned with “conduct of business” and can often be regulated by existing authorities within their respective spheres of influence. In other words, non-prudential regulations may prove adequate to the task where prudential concerns are not at issue. A non-exhaustive list of issues that can be addressed with non-prudential regulations include: permission to lend; fraud and financial crime prevention; interest rate limits; limitations on ownership, management, and capital structure; tax and accounting treatment of micofinance; and feasible mechanisms of legal transformation. This distinction is more than academic because regulations require the dedication of supervisory resources which are themselves scarce. By carefully calibrating prudential versus non-prudential matters, a government may effectively mobilize scarce resources and promote microfinance development.
The International Banking Systems publication (IBS), an online journal that provides information on banking systems and operations, have produced a detailed supplement on the role of technological systems in microfinance [1]. An article within the supplement entitled ‘Analysis: Microfinance Stakeholders – Guiding hands’ [2] explores how major stakeholders shape the market for microfinance information systems (MIS). The thrust of the article is that there is an important difference between the microfinance and commercial banking sectors when it comes to information systems and that MFIs depend heavily on key stakeholders such as the Bill and Melinda Gates Foundation [3], CGAP [4], the IFC [5] and GTZ [6] for guidance and direction in making technology decisions. The conclusion arrived at is that ‘directly or indirectly, it is these stakeholders that influence purchasing decisions by MFIs, on the business case for investment, the process of selection, and which products to choose’ in respect of MIS.
The International Banking Systems publication (IBS), an online journal that provides information on banking systems and operations, have produced a detailed supplement on the role of technological systems in microfinance [1]. An article within the supplement entitled ‘Technology for Microfinance – Trends driving the technology’ [2], the authors discuss the growing importance of risk management systems in MFIs. These systems are significant as they allow MFIs to address critical issues such as over-indebtedness, a problem which has become acute for some MFIs in the current financial turmoil, and report to their investors promptly.
Founded in 1952, CHF International (CHF) has worked in over 100 countries and currently operates in more than 25 nations. CHF’s mission is to serve as a catalyst for long-lasting positive change in low- and moderate-income communities around the world, helping people improve their social, economic, and environmental conditions. One component of fulfilling that mission has been improving access to financial services. In the last five years, CHF International has disbursed over 200,000 loans totaling more than USD 482 million and has a particular niche in establishing microfinance programs in conflict, post-conflict, and post-disaster settings. CHF currently oversees lending operations in 11 countries across Africa, Asia, Europe, Latin America, and the Middle East. As of June 2009, CHF International had assets under management of over USD 200 million (microfinance portfolio outstanding of USD 107.6 million plus middle market portfolio outstanding of USD 93.5 million).
Elissa McCarter, Director of the Office of Development Finance that oversees Microfinance, SME and Housing Finance Initiatives at CHF International (CHF)
Source: Tech World (Australia).
The State Bank of Pakistan (SBP) has signed a Memorandum of Understanding (MoU) with Tameer Microfinance Bank (TMFB) under which the SBP will provide Rs 82 million (approx USD 1 million) to TMFB over a period of one year. According to a press release on the Pakistani Financial Daily Business Recorder, the funding will be provided under the Institutional Strengthening Fund (ISF), a microfinance initiative launched by the SBP [1]. (Business Recorder is a financial and business newspaper owned by the Business Recorder Group, a media conglomerate based in Pakistan).
Source: EFInA.
The Indian government is considering increasing its credit guarantee scheme for micro and small enterprises (MSE) in the upcoming 2009-2010 budget through its Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). The existing guarantee for member lending institutions of this scheme does not cover bank loans to MSEs that are secured by collateral. A finance ministry source claims that the Reserve Bank of India (RBI) has put forward this proposal and is working on it with the ministry.
The International Finance Corporation (IFC), a unit of the World Bank Group, is providing a USD 65 million loan and USD 10 million in equity capital to MTN Afghanistan, a subsidiary of MTN Dubai and part of the South Africa-based MTN Group Ltd. The investment is meant to support the expansion of MTN’s mobile telephone network to meet growing mobile phone service demand in Afghanistan. The expansion is focused on low-income populations. Details of the loan and equity investment were not available for this story, however James Ramadan, MTN Group’s Regional Vice President for Middle East and North Africa stated that the IFC was providing “long-term funding.” The IFC hopes its investment will encourage other investors into the sector in Afghanistan.
In Omar Omeidat’s report in the Jordan Times on a regional conference in Amman on agricultural banks and rural microfinance, HRH Princess Basma was reported to have highlighted the importance of funding for rural projects, particularly in view of the global economic crisis, which she said has had a negative impact on food security programmes. The Princess indicated that due to local and global economic circumstances and a shortage of water resources, the agricultural sector in Jordan faces several challenges, which have led to a drop in the sector’s contribution to the gross domestic product (GDP) and work force. Jordan’s water crisis was the focus of a recent article on the AlertNet-Reuters network, which disseminates information about humanitarian disasters and emergencies across the globe. The IRIN portal, which provides information on humanitarian affairs under the auspices of the United Nations Office for the Coordination of Humanitarian Affairs, recently reported that whilst the water and related food crisis in Jordan is not yet critical, a range of measures and projects need to be implemented as soon as possible to contain the problem.
The winners of a new Social Performance Reporting Award were announced at the Annual Social Performance Task Force Meeting in Madrid, Spain. AMK in Cambodia, FINCA Peru, and Prisma Peru received the Gold Award, and Asasah from Pakistan received the Silver Award.
Speaking at a conference on mobile banking, Kenyan Finance Minister Uhuru Kenyatta announced proposed amendments to the Banking Act that would enable commercial banks to partner with non-banking agencies, such as microfinance institutions (MFIs), to reach Kenyans who could not previously access financial services. The Central Bank of Kenya (CBK) is also pushing for further policy guidelines that will enhance the regulatory framework of branchless banking and increase access to internet banking and mobile money transfer services.
Microfinance Event: XII FOROMIC 2009: Inter-American Forum on Microenterprise
FOROMIC 2009: Inter-American Forum on Microenterprise, September 30 – October 2, 2009, Arequipa, Peru, Sponsored by the Multilateral Investment Fund, Organized by the Inter-American Development Bank
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A fund targeted at USD 50 million has been opened by Alitheia Capital, Goodwell Investments and JCS Investments Limited in Lagos, Nigeria. The fund will invest in and develop microfinance banks and organizations in Nigeria and Ghana. These three investment organizations will pool funds to provide commercial long-term capital which will support the start up and growth of microfinance institutions (MFIs). In addition, support to management teams and access to global microfinance expertise would be provided. The goal of the fund is to increase the outreach of MFIs and provide investors with a market rate of return.
Source: Daily Nation
Banking & Payment Technologies West Africa, Lagos, Nigeria, 4-6 May 2009
See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events