India: SKS Microfinance ties up with State Bank of India…

SKS Microfinance has tied up with State Bank of India and two of its group banks for integration of 600 of its branch accounts with them.
“This is an innovation on the liability side we are offering to our customers. It will facilitate last mile cash-dealing,” Mr Dilli Raj, Chief Financial Officer, SKS Microfinance, told Business [...]

MIX Market Partners with The MasterCard Foundation for Re-Launch…

Next generation mixmarket.org features expanded data set
WASHINGTON, Dec. 21 — The Microfinance Information Exchange, Inc. (MIX) announced the re-launch of MIX Market (www.mixmarket.org), the global platform for microfinance data, analytics and business information. The website was redesigned and the underlying database rebuilt to allow for the rapidly expanding network of microfinance institutions and their broader [...]

India: Microfinance lenders to stop multiple loans…

Among key decisions taken at a meeting in Mumbai on 7 December were not to offer above Rs50,000 to any single borrower and not more than three lenders lending money to one individual.
Currently, the size of a micro loan is capped at Rs25,000, but borrowers often take three or four times this from multiple lenders, [...]

Grameen: Using Technology to Advance the Fight against Global Poverty

Microfinance has grown tremendously in the last decade, moving from little NGOs working in tiny villages to large institutions providing loans, savings accounts and insurance to hundreds of thousands of poor women and men.  Grameen Bank in Bangladesh alone has more than seven million clients, while institutions like Grameen Koota in India serve more than [...]

WSJ: Microfinance’s Financial and Social Objectives

Wall Street Journal
According to the 2009 Microfinance India State of the Sector (MISS) Report, the microfinance industry’s client outreach has grown by 30% over the last year to 76.6 million and the total outstanding loan portfolio has grown by a staggering 56% to INR 359 Billion over the same period.
The growing integration of the sector [...]

WSJ: As Microfinance Grows in India, So Do Its Rivals

Mahabubnagar, India
The practice of making tiny loans to poor people, or microfinance, was supposed to help drive traditional village moneylenders from rural India.
Instead, traditional moneylenders, who typically charge high interest rates, are thriving, even in areas most heavily targeted by microfinance, which was begun as a way to help combat poverty by granting the poor [...]

Pakistan State Bank: Microfinance role ‘vital’…

KARACHI – Governor, State Bank of Pakistan, Salim Raza on Saturday said that microfinance banks/institutions have a key role to play in creating economic opportunities for the poorest sections of the society by broadening their outreach.
Delivering a keynote address on “ Economic Empowerment for the Base of the Pyramid “ at the Acumen Community Gathering [...]

Nigerian MFBs Face Crisis Due to Increased Yuletide Withdrawals

Nigerian microfinance banks (MFBs) are facing difficult times as they manage their liquidity positions and also endeavor to cope with the increased yuletide withdrawals by their customers. The season of Christmas is a period of increased expenditure for many households. The case of individuals who have held their savings at some of the microfinance banks [...]

BBC: Lessons from microfinance…

Nils Blythe
Business Correspondent, BBC News
It is hard to imagine that a £12 loan can be life-changing.
But for Margaret Chunga, living in the tiny village of Chipepete in central Malawi, a tiny loan has made a huge difference.
She used the loan to buy wheat flour, salt and sugar in order to set up a road-side [...]

Study: Size does matter when it comes to microfinance…

Kolkata: Size does matter when it comes to microfinance. That and the pace of expansion mark the difference between success and failure, according to a study into the industry.
One out of three microfinance institutions (MFI) in India made losses in fiscal 2009, says a study of some 230 lenders conducted by ACCESS Development Services, a [...]

Microfinance “no big deal”?

Official Financial Times Posting and Accion response:
Perhaps microfinance isn’t such a big deal after all
By Tim Harford
Published: December 5 2009 00:10
Last December, I showed some unwitting prescience by worrying about a backlash against microfinance, the practice of providing small loans – or perhaps savings products or insurance – to poor people. I fretted that there was [...]

WWB: The tradeoff between commercialization and women’s empowerment…

No one better understands the paradoxes and potential of microfinance as vehicles for empowering women and lifting communities out of poverty than Mary Ellen Iskenderian. As President and CEO of Women’s World Banking (WWB, www.swwb.org) – the World’s largest network of microfinance institutions (MFIs) and banks across 30 countries, spanning 4 continents – she knows [...]

Nigeria: ‘Failed banks’ staff have infiltrated microfinance institutions’

The inability of microfinance banks in the country to meet their obligations to customers has been blamed on the infiltration of their management and boards by some former staff of most of the failed banks that have closed business.
The acting Managing Director, the National Deposit Insurance Corporation (NDIC), Umaru Ibrahim, said in Abuja that most [...]

The Poor In Debt: Oikocredit’s Concern In Microfinance…

MANILA, Dec. 8 /PRNewswire-Asia/ — The threat of poor entrepreneurs taking on too much loan debt is a growing reality, and a genuine threat to the rapidly expanding microfinance sector. At Oikocredit’s annual staff and board meetings, regional managers who operate in almost 70 different countries, raised concerns over the rate of over-indebtedness in some [...]

Dec. 08, 2009 : In my earlier article (Microfinance FocusAugust 2009 – Download ) I wrote about the potential of using community currencies, or scrip, as a basis of a local microfinance project. As I pointed out there, one problem with using a community currency is the redemption of the scrip: if everyone changes their community currency [...]

Against the backdrop of incessant complaints against the operations and operators of the microfinance banks (MFBs) in the country, the Central Bank of Nigeria (CBN) is set to review its policy guidelines, with a view to making it alive to its responsibilities.
According to the Deputy Director, Other Financial Institutions Department (OFID) of the apex bank, [...]

Citi today announced that its partnership with ACCION Texas has made a significant impact at the one-year mark despite the economic downturn and weak small business sector performance. Citi’s partnership with ACCION Texas generated $6 million in loans to help finance small business investments in underserved communities, which allows ACCION Texas to further expand its business [...]

THE Central Bank of Nigeria, CBN, says an apex association for microfinance banks in Nigeria will not only strengthen and boost rural economy but is capable of strengthening the national economy, generally.
Speaking at the recent harmonization of two strong microfinance banking associations in the country into the National Association of Microfinance Banks (NAMB) from the [...]

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