The Central Bank of Kenya released new sets of guidelines as well as its vision for microfinance in the coming years. The guidelines allow deposit-taking MFIs (DTMs) to contract with local agents to expand their outreach in a cost-effective way. While detailing how to select and work with the agents, the CBK leaves it to the DTMs to identify which products (credit or deposit) the agents can sell. As for the CBKs vision for microfinance...
Risk levels in Senegal remain elevated but MFIs are split on what exactly is causing the risk levels to be so high. When MIX reached out to a sample of MFIs in the region for their insights, we received the following feedback – there are poor lending practices, poor national infrastructure, and...
The Bangko Sentral ng Philippines (BSP) increased the maximum loan balance that regulated MFIs can offer qualified borrowers. Based on first quarter data, the average loan balance has increased slightly, mostly driven by rural banks. With this regulation, MFIs should be able to...
Despite strong borrowing flows in 2011, funding growth has slowed significantly through the first half of 2012. Funders think there is too much funds entering the market and MFIs want more. MFIs report on being more cautious about extending loans and not anticipating needing...
Redcamif, a Central American and Caribbean MFI network, is launching a micropension program next month – the first of its kind in the region and world! With market and feasibility studies complete, Redcamif will now enter a pilot phase in six MFIs across Guatemala, Nicaragua and Honduras. This micropension program stands to benefit...
The National Bank of Kyrgyzstan's two new regulations for the microfinance sector caught MFIs off guard. These new regulations will increase the amount of provisioning set aside for borrowers that ask for a second loan or higher as well as limits late payment fees. The additional provisioning may also affect...
In the most recent Barometer, MFIs overwhelming cited market penetration as a factor for outreach, but whether it has been a positive or negative for growth varies by MFI regional focus. Large national MFIs are having trouble penetrating rural markets, but small regional or provincial MFIs are growing rapidly due to their ability to reach these rural markets...
The Microcredit Regulatory Authority (MRA), the formal regulatory body for the microfinance industry in Bangladesh, has recently required MFIs that participate in nontraditional microfinance activities to register those activities and has instructed MFIs to allocate a portion of their surplus income to loan loss provisions so as to avoid the money being used in funds or activities that do not directly alleviate poverty. Those MFIs that do not comply with the new procedures and deadlines risk losing their license...
The Banking Agency of the Federation wants MFIs to consolidate so there are fewer institutions and costs can be spread over larger asset bases thus resulting in more sustainable institutions. However, MFIs are arguing against market consolidation due to recent profitability, though driven by loan recoveries from write-offs. MFIs are using this as reason to argue for transformation from non-profits to for profits instead of consolidation so they can offer larger loans and attract equity investments. Presently, the Banking Agency of the Federation is against transformations...
The microfinance sector of Ghana has been working to put into place the Operating Rules and Guidelines for Microfinance Institutions issued by the Bank of Ghana (BoG) last July. These rules and guidelines are meant to better regulate the entire microfinance industry in Ghana by improving BoG oversight of the industry and requiring that the vast array of microfinance service providers be licensed. One year since though, the licensing process for all microfinance-related actors continues. The BoG is climbing its way out from under hundreds of applications, and the data reporting system componenthoused within the Ghana Microfinance Network is still in process...
The joint UNCDF-UNDP “Nepal-Rastra Bank – Enhancing Access to Financial Services (NRB-EAFS)” project – aimed at strengthening the capacity of the Nepalese microfinance sector – has recently registered all seventeen of its partner MFIs on MIX Market. Both the technology and transparency remain significant challenges to MFIs in Nepal, and the creation of these new profiles represents a major step in addressing such issues. Thanks to the project, users can now view, analyze and compare NRB-EAFS partner organizations’ financial and outreach data on MIX Market, using an array of sophisticated online tools previously unavailable to them. Along with the ten M-CRIL ratings commissioned by the project, these MIX Market profiles will allow stakeholders to better pinpoint the strengths and weaknesses of MFIs in Nepal and create new strategies to better serve its impoverished populations.
The Information Management Magazine Innovative Solution Award recognizes data-dependent organizations conducting information management initiatives that result in constructive change and quantifiable business value.
Join us December 5 through 7 for an online discussion of MIX’s recent data collection efforts and analysis of financial inclusion in Africa on the SEEP blog. This is your chance to discuss African financial inclusion with MIX’s expert analysts, data contributors and your colleagues in the industry!
What can you do to get prepared? Learn more about MIX’s efforts with financial inclusion to the poor in Africa by using our new interactive financial inclusion map and read our most recent analysis of the Africa data.
The blog posts and comments will be translated into French/English during the three-day conference.
October, 12, 2011— Today, Microfinance Information Exchange (MIX) announced the launch of MIX Silver—a value-added, fee-based service for business users that furthers MIX’s mission of promoting financial inclusion and fostering transparency in the microfinance sector. Developed in response to intensive market research, these new solutions address users’ need for timely data and deeper microfinance insight.
MIX Executive Director, Marten Leijon, announces new premium features and the upgrate of MIXMarket.org that will further MIX's mission of promoting microfinance transparency.
Washington, D.C., September 19, 2011 – MIX (Microfinance Information Exchange), today launched the Africa Map of Financial Inclusion for the Poor (africa.mixmarket.org) to help practitioners and policymakers better understand access to finance in Africa. This interactive tool is part of a $2 million, 3-year partnership with The MasterCard Foundation to enhance core functions of the MIX Market web platform, and improve visibility and access to financial inclusion information in Africa.
MIX is excited to announce that MIX Market has just reached 2,000 reporting MFIs! MIX Market is the largest database of microfinance information featuring data from MFIs in 110 countries that represent over 92 million borrowers. Of those MFIs that report to MIX, more than 440 MFIs have submitted their social performance information, which is now displayed directly alongside the financial information on each institutions profile. MIX Market's database also features more than 300 profiles with interim data in addition to annual performance information.
As the microfinance industry evolves, so too does its understanding of its own goals and practices. Over the past few years, the industry has come to recognize that sound financial performance is not sufficient to ensure the achievement of microfinance’s social objectives. Social performance management — the process of ensuring that an MFI acts in a socially responsible manner — has emerged as a crucial factor in addressing this issue.
