0

Author: Daniel Rozas

Last week, MFIN, received official recognition from the Reserve Bank of India as a Self-Regulatory Organization in charge of regulating the activities of its members. This is the first time a financial organization received such official recognition in the country. Indeed, I'm not aware of any other countries that have a similar arrangement, so this may well be a global milestone as well.

This is a big deal that bodes well for the future development of the Indian microfinance sector. It also reminded me of an article co-authored by M-CRIL's Sanjay Sinha and myself back in January 2010, nearly a year before the onslought of the Andhra Pradesh crisis. MFIN had been formed just months before, and had developed a Code of Conduct that included many important features, including strong limits to multiple lending - a maximum of 3 concurrent loans or combined amount of 50,000 rupees (~€750 at the time). However, we felt that as a purely self-regulatory institution, MFIN lacked the teeth to effectively monitor its members, and we made the case for a system quite similar to the one that's just been implemented in India. I look forward to seeing it thrive and set an example for others.

6

Author: Daniel Rozas

You know the game of musical chairs: players sit on chairs arranged in a circle. The music starts and the players start circling – dancing, running – while chairs are progressively removed. Then the music stops and chaos erupts as the players seek to find a place to sit.

In Mexico, the number of chairs remaining is few indeed, even as the MFIs continue to dance. The recently published study by the Microfinance CEO Working Group shows just how few chairs are left.

2

Author: Daniel Rozas

Or the more things change, the more they stay the same...  Sometimes it seems as though there is no shortage of proverbs when it comes to looking at the seemingly inevitable credit business cycle. In my last blog I took a look at the unprecedented stability of the US banking sector during the 50 years following the Great Depression.

0

Author: Daniel Rozas

Recently, I was reading the Economist and came across Charles Keating's obituary.  That name means little to most readers outside the US, but for me it reminded of an idea that's been percolating in my mind for quite some time now:  while rich countries offer valuable lessons for microfinance regulation, those lessons alone won't be enough.

3

Author: Daniel Rozas

A recent article by the Economist hails a study in Bangladesh by Shahidur Khandker as "the biggest study so far [which] finds that microcredit helps the poor after all."  Within the sector, the article has been widely circulated as proof that, indeed, microfinance does work.

0

Author: Clarmondial

As the microfinance industry has grown, there has been an increasing focus on the non-financial impacts that microfinance institutions (MFIs) can have. While the industry developed to tackle socio-economic issues through providing access to finance, its impressive growth led to increasing evaluation of MFIs potential social and environmental impacts. As a result, MFIs are increasingly expected to consider a broader spectrum of issues in their operations.

1

Author: e-MFP

Every November, the European Microfinance Week (EMW) brings together a high-level group of decision-makers, opinion-leaders and practitioners from the microfinance industry to discuss the state of the sector and the way ahead in the coming years. This past November, the e-MFP team went one step further, and conducted a poll of attendees on the key trends affecting the sector and its level of preparedness to address them.

1

Author: Solene Morvant-Roux

This part II of a two-post blog, summarizing some of the key findings of an edited volume that has just been released (Guérin I. Morvant-Roux S. Villarreal M. (eds) (2013) Microfinance, debt and over-indebtedness: Juggling with money, London: Routledge). More details about the book can be found here. Other project publications may be found at microfinance-in-crisis.org.

0

Author: e-MFP

NpM tax report image

NpM, Platform for Inclusive Finance is a Dutch membership organisation focusing on the promotion of inclusive finance. What the member organisations have in common is their contribution to assisting the poor in getting access to finance.

Pages