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UNITED NATIONS CAPITAL DEVELOPMENT FUND Microfinance |
Issue 5 / September - October 2004 |
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Links New publications and web sites for your information: ACCION International recently published, Supervising & Regulating Microfinance in the Context of Financial Sector Liberalization: Lessons from Bolivia, Colombia and Mexico. This publication, written by Jacques Trigo Loubière, Patricia Lee Devaney and Elisabeth Rhyne, is available in both English and Spanish, and can be purchased and downloaded at http://www.accion.org/pubs/ Supervising and Regulating Microfinance examines the regulatory framework for microfinance in three countries: Bolivia, Colombia and Mexico, each with very different experiences in financial reform, financial crisis and microfinance. It explores the impact of financial reform and crisis on the choices regulatory authorities have made about microfinance, and in turn, explores how these choices have affected the character of the microfinance industry in each country. This monograph also addresses the elements of good microfinance regulation, beginning with the financial sector environment needed to advance microfinance and continuing with preparation of supervisors and specific norms adapted for microfinance. These topics are illustrated by comparing the experiences and policies of the three subject countries. A new publication by Nimal
Fernando entitled, Micro Success Story? Transformation of Non-government
Organizations into Regulated Financial Institutions examines the ownership
structure, expectations, and achievements of microfinance institutions that
have been established by transforming non-government organizations (NGOs) into
commercial financial institutions. Published by the Asian Development Bank,
the publication details this relatively new shift in the microfinance industry
and how some institutions have improved their operations to serve larger segments
of the poor more effectively. The hard copy price is $10 though you can access
the full text online at: Case Study No. 14 “Capacity Leads, Capital Follows: Donors and Investors Match Instruments to ACLEDA's Stage of Development” was written by Heather Clark and tells the story of ACLEDA in Cambodia from the beginning as a UNDP and ILO supported project through the present. Today, ACLEDA Bank is the largest retail bank network in Cambodia, with over 82,000 microloan clients. This case study highlights the role of donor agencies in recognizing the different needs to support institutions at different stages of institutional development, and the importance of finding donor agencies with the “comparative advantage”. You can find the document at http://www.cgap.org/direct/docs/case_studies/cs_14.pdf In conjunction with Financiera Compartamos, Citigroup/Banamex announced a $44 million investment that will create peso-denominated bonds ultimately used to finance microfinance initiatives in Mexico. This transaction will assist thousands of Compartamos’ clients, who are mostly rural women. Compartamos will use this money to diversify its funding sources as it moves to expand its client base to over a million by 2008. Currently, the MFI has an increasing network of 94 branches in 22 states of Mexico and more than 250,000 borrowers and serves as a model for newer organizations. Migrant remittances have increased in recent years and are gaining the attention of policymakers all over the globe. Their relationship to financial services providers and micro-entrepreneurial endeavors becomes a key concern for all sectors of society. A new USAID quarterly publication, Migrant Remittances, will discuss and analyze the latest news and reports on remittances. The first issue (August 2004) features an overview on topics and trends including the latest global and regional remittance flow data and trends in money transfer services, as well as updates for readers on new activities, events, and papers or publications concerning remittances worldwide. To sign up for a copy of this newsletter, email: remittance@bannock.co.uk. Experienced donors know that governments play a crucial role in the microfinance sector. Donor CGAP Donor Brief 19 further defines how a government can help construct an enabling environment for microfinance, such as protecting deposits and setting appropriate policies for small business to flourish. Also, by being fiscally responsible on a macroeconomic level, the government can influence the success of microfinance. Donors can affect the role of government in the financial sector by mobilizing resources and collaborating to encourage governments to act responsibly and fairly towards microfinance providers and recipients. To learn more about government’s role in microfinance, go to http://www.cgap.org/direct/docs/donor_briefs/db_19.pdf The Alternative Finance website has recently launched a new online microfinance bookshop available at http://www.DevelopmentBookshelf.com. Development Bookshelf is small collection of useful microfinance and related development titles that are available to purchase through a fully secure online shop, with international delivery. The Alternative Finance website http://www.alternative-finance.org.uk provides a forum for MFI practitioners and researchers and gives improved access to applied research, provides innovative microfinance training tools, and facilitates the exchange and dissemination of development finance resources. The site is available in English and Spanish.
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