Bangladesh Bank, the country’s central bank, recently reported that the volume of non-performing loans (NPLs) in the domestic microcredit industry rose from BDT 45 billion (USD 412 million) in the fiscal year ending March 2021 (FY21) to
Tag: Regulation
MICROFINANCE EVENT: X Conferencia Centroamericana y del Caribe de Microfinanzas; March 20-22, 2023; Antigua, Guatemala
The tenth Central American and Caribbean microfinance conference is themed “Resilience and recovery of financial inclusion in the new reality.” The first morning is a forum for showcasing new technologies. The remaining two days will cover themes such as digital transformation, gender equity,
MICROCAPITAL BRIEF: CCAF-World Bank Study Finds Regulators in Africa Tops for Increasing Focus on Fintech, Cybersecurity Main Concern Worldwide
A recent survey of 128 financial regulators and supervisors worldwide found that just over half of respondents in low- and middle-income countries have been increasing their focus on financial technology (fintech) firms. The figure is about one out of three in
MICROCAPITAL BRIEF: Bank of Ghana, Emtech Solutions Launch Regulatory Sandbox to Encourage Innovation in Finance, Financial Inclusion
The Bank of Ghana (BoG), the country’s central bank, recently launched a regulatory sandbox – a mechanism for testing business models not covered by existing regulations, in partnership with the US-based financial technology (fintech) firm Emtech Solutions. Following a successful pilot phase, BoG adopted Emtech’s digital regulatory review and reporting platform, through which financial service providers can
MICROCAPITAL BRIEF: SAFCO Transforming into For-profit Entity with Microfinance License from Securities and Exchange Commision of Pakistan
The Securities and Exchange Commission of Pakistan (SECP) recently issued a license to Sustainable Actions to Access Financial Capital Opportunities (SAFCO) Microfinance Company, a unit of the SAFCO Support Foundation, allowing it to offer microfinance services. The announcement comes as SECP is
MICROCAPITAL BRIEF: Indonesia Expands Consumer Protection Regulations for Financial Institutions
Otoritas Jasa Keuangan (OJK), Indonesia’s financial regulator, recently announced a new set of regulations intended to protect customers of financial services providers (FSPs). The regulations apply to
MICROFINANCE PAPER WRAP-UP: “Policy Framework on the Regulation, Licensing and Supervision of Digital Banks,” Published by Alliance for Financial Inclusion
This report provides a framework for regulators and policymakers seeking to improve the way they govern digital banks, with a focus on increasing financial inclusion. It draws on “in-depth secondary research and extensive consultation with [Alliance for Financial Inclusion] member countries and regulators in other jurisdictions, and other relevant analysis of
MICROCAPITAL BRIEF: Cenfri, Cornerstone, GLEIF, London Stock Exchange Collaborate on Legal Entity Identifiers (LEIs) to Boost Financial Inclusion of SMEs in Africa
Four organizations recently launched an effort to equip small and medium-sized enterprises (SMEs) in Africa with Legal Entity Identifiers (LEIs), which are 20-digit codes linked to “business card and ownership structure information about a legal entity which can be verified quickly and efficiently by anyone, anywhere, enabling organizations to know precisely with whom they are doing business.” The participating entities are
MICROFINANCE PAPER WRAP-UP: “Debt Relief in the Pandemic: Lessons from India, Peru and Uganda;” by Elisabeth Rhyne, Eric Duflos; Published by CGAP
In response to the economic effects of the COVID-19 pandemic, regulators in approximately 115 countries directed financial service providers (FSPs) to grant debt moratoria and restructuring to their borrowers. The authors of this paper reviewed surveys, interviews and other materials regarding
MICROCAPITAL BRIEF: 30 Microfinance Institutions (MFIs) in Ghana Investigated for Possible Illegal Activity
Allegations of fraud and embezzlement have surfaced against roughly 30 microfinance institutions (MFIs) in Ghana. A preliminary investigation performed by the country’s Securities and Exchange Commission and the Economic and Organized Crime Office
MICROFINANCE EVENT: Futuristic Financial Intelligence Summit; September 28, 2018; Mumbai, India
Event Summary: The first Futuristic Financial Intelligence Summit will address developments in financial technology (fintech) including
MICROCAPITAL BRIEF: With Delinquency Up 24%, Sri Lanka Paying Off Women’s Microfinance Loans, Capping Microloan Interest Rates
Sri Lanka’s Ministry of Finance recently announced that it has placed a cap on the interest rate microfinance institutions (MFIs) can charge borrowers at 30 percent per year. This comes as the Central Bank of Sri Lanka has found the microfinance sector’s gross non-performing loan account
MICROCAPITAL BRIEF: Commercial Bank of Ceylon Launches CBC Myanmar Microfinance Company
The Commercial Bank of Ceylon (CBC), which is based in Sri Lanka, recently announced the debut of a subsidiary called CBC Myanmar Microfinance Company Limited. The newly formed microfinance institution (MFI) will
MICROCAPITAL BRIEF: CBN Doubts Nigeria will Meet 2020 Financial Inclusion Goal
The Central Bank of Nigeria (CBN) recently reported that the country is not on track to meet the goals it set in the 2012 National Financial Inclusion Strategy (NFIS). According to a CBN statement, “Nigeria has failed to meet its financial inclusion targets due to a variety of factors;
MICROFINANCE PAPER WRAP-UP: Asian Development Bank (ADB): “Embracing the E-commerce Revolution in Asia and the Pacific”
This is a summary of a paper published by the Asian Development Bank (ADB), June 2018, 101 pages, available at:
https://www.adb.org/sites/default/files/publication/430401/embracing-e-commerce-revolution.pdf.
MICROCAPITAL BRIEF: Government Policy Moves BancABC, CRDB, NMB to Cut Interest Rates on Loans in Tanzania
Tanzania’s government recently implemented the following measures with the goal of reducing customer borrowing costs: (1) cutting the Bank of Tanzania’s short-term rates on loans to banks to 6.89 percent; (2) lowering the longer-term discount rate to 9 percent; (3) reducing banks’ minimum deposit reserve requirement to 8 percent; (4) creating a credit reference system; and (5) “paying…audited debts to reduce non-performing loans.” In a recent speech,
MICROFINANCE EVENT: Africa Innovation Summit (AIS); June 6 – 8, 2018: Kigali, Rwanda
Summary of Event: The theme of this conference is facilitating development in Africa by empowering entrepreneurs across the continent. The topics include Challenges and Opportunities for Innovation in Africa; Building a Resilient and Competitive Economy for Africa’s Future; 21st Century African Cities; Financing and Scaling up
MICROCAPITAL BRIEF: Microfinance Institutions in Pakistan to be Registered as Non-Banking Financial Companies, Regulated by Securities and Exchange Commission
The Securities and Exchange Commission of Pakistan (SECP) recently announced plans to bring all non-deposit taking microfinance institutions (MFIs) and related nongovernmental organizations (NGOs) under the non-banking finance company (NBFC) framework in an effort to improve the regulation and monitoring of their activities.