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• Microfinance
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance
1 Microfinance is a form of financial services for entrepreneurs and small businesses lacking access to banking and related
services. The two main mechanisms for the delivery of financial services to such clients
are: (1) relationship-based banking for individual entrepreneurs and small
businesses; and (2) group-based models, where several entrepreneurs come together
to apply for loans and other services as a group.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance
1 In some regions, for example Southern Africa, microfinance is used
to describe the supply of financial services to low-income employees, which is closer to the retail finance
model prevalent in mainstream banking.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance
1 For others, microfinance is a way to promote economic development,
employment and growth through the support of micro-entrepreneurs and
small businesses.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance
1 Proponents often claim that microfinance lifts people out of poverty, but the evidence is
mixed
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Purpose
1 Traditionally, banks have not provided financial services, such as
loans, to clients with little or no cash income
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Purpose
1 In addition, most poor people have few assets that can be secured by a bank as collateral. As documented
extensively by Hernando de Soto and others, even if they happen to own land in the developing world, they
may not have effective title to it. This means that the bank will have little
recourse against defaulting borrowers.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Purpose
1 Seen from a broader perspective, the development of a healthy national
financial system has long been viewed as a catalyst for the broader
goal of national economic development (see for example Alexander Gerschenkron, Paul
Rosenstein-Rodan, Joseph Schumpeter, Anne Krueger)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Purpose
1 Hopes of quickly putting them out of business have proven unrealistic,
even in places where microfinance institutions are active.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Purpose
1 The industry has been growing rapidly, and concerns have arisen that the rate of capital flowing into
microfinance is a potential risk unless managed well.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Purpose
1 As seen in the State of Andhra Pradesh (India), these systems can
easily fail. Reasons for failure include lack of use by potential customers, over-indebtedness, poor operating procedures, neglect of duties and
inadequate regulations.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 In developing economies and particularly in rural areas, many activities that would be
classified in the developed world as financial are not monetized: that is, money is not used to carry them out. This is often the case when people need the services money can provide but do not have dispensable funds required for those services, forcing them to revert to other means of acquiring them. In his recent
book The Poor and Their Money, Stuart Rutherford cites several types of needs:
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 Lifecycle Needs: such as weddings, funerals, childbirth, education,
homebuilding, widowhood and old age.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 Personal Emergencies: such as sickness, injury, unemployment, theft, harassment or
death.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 Disasters: such as fires, floods, cyclones and man-made events like war or bulldozing of
dwellings.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 Investment Opportunities: expanding a business, buying land or
equipment, improving housing, securing a job (which often requires
paying a large bribe), etc.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 The obstacles or challenges to building a sound commercial microfinance industry
include:
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 Inappropriate donor subsidies
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 Poor regulation and supervision of deposit-
taking MFIs
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 Few MFIs that meet the needs for savings,
remittances or insurance
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 Institutional inefficiencies
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and poverty
1 Need for more dissemination and adoption of rural, agricultural microfinance methodologies
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Ways in which poor people manage their money
1 Rutherford argues that the basic problem poor people as money managers face is to gather a
'usefully large' amount of money
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Ways in which poor people manage their money
1 A poor family might borrow from relatives to buy land, from a
moneylender to buy rice, or from a microfinance institution to buy a
sewing machine
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Ways in which poor people manage their money
1 Most needs are met through a mix of saving and credit. A benchmark impact assessment
of Grameen Bank and two other large microfinance institutions in Bangladesh found that for every $1 they were lending to clients to finance rural non-farm micro-enterprise,
about $2.50 came from other sources, mostly their clients' savings. This parallels the experience in the West, in which family
businesses are funded mostly from savings, especially during start-up.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Ways in which poor people manage their money
1 Recent studies have also shown that informal methods of saving are unsafe. For example, a study by Wright and Mutesasira in Uganda
concluded that "those with no option but to save in the informal sector are almost bound to lose some money—probably around one quarter of what
they save there."
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Ways in which poor people manage their money
1 The work of Rutherford, Wright and others has caused practitioners to
reconsider a key aspect of the microcredit paradigm: that poor
people get out of poverty by borrowing, building microenterprises
and increasing their income
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Examples
1 An example of microfinance is the Saving Up program
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Examples
1 FINCA, the Foundation for International Community Assistance, was formed in Latin America in the
1980s
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Examples
1 According to Rutherford, there are three ways to save, known as basic personal financial intermediations;
saving up (deposit collectors), saving down (the urban moneylenders) and saving through (the merry go round)
(Rutherford, 2009).
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Examples
1 Jyothi, from the city of Vijayawada in India, is used as an example of a saving up initiative
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Examples
1 Another important basic personal financial intermediation is called the saving up and down; Rabeya’s “fund”
which takes place in Dhaka, Bangladesh
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance debates and challenges
1 There are several key debates at the
boundaries of microfinance.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Interest rates
1 The high costs of traditional microfinance loans limit their
effectiveness as a poverty-fighting tool
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Interest rates
1 According to a recent survey of microfinance borrowers in Ghana
published by the Center for Financial Inclusion, more than one-third of
borrowers surveyed reported struggling to repay their loans. Some
resorted to measures such as reducing their food intake or taking
children out of school in order to repay microfinance debts that had not proven sufficiently profitable.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Interest rates
1 In recent years, the microfinance industry has shifted its focus from the objective of
increasing the volume of lending capital available, to address the challenge of
providing microfinance loans more affordably. Microfinance analyst David Roodman contends that, in mature markets, the average interest
and fee rates charged by microfinance institutions tend to fall over time. However,
global average interest rates for microfinance loans are still well above 30%.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Interest rates
1 However, it remains to be seen whether such radical alternative
models can reach the scale necessary to compete with
traditional microfinance programs.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Use of loans
1 Practitioners and donors from the charitable side of microfinance frequently argue for restricting
microcredit to loans for productive purposes—such as to start or expand
a microenterprise. Those from the private-sector side respond that,
because money is fungible, such a restriction is impossible to enforce,
and that in any case it should not be up to rich people to determine how
poor people use their money.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Who should provide microfinance services?
1 Perhaps influenced by traditional Western views about usury, the role of the traditional moneylender has
been subject to much criticism, especially in the early stages of
modern microfinance
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Who should provide microfinance services?
1 Modern microfinance emerged in the 1970s with a strong orientation
towards private-sector solutions. This resulted from evidence that state-owned agricultural development
banks in developing countries had been a monumental failure, actually undermining the development goals they were intended to serve (see the
compilation edited by Adams, Graham & Von Pischke).
Nevertheless, public officials in many countries hold a different view, and
continue to intervene in microfinance markets.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Reach versus depth of impact
1 This is true not only for individual institutions, but also for governments
engaged in developing national microfinance systems.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Gender
1 Microfinance experts generally agree that women should be the primary focus of service
delivery
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Benefits and Limitations
1 The limitations of microfinance are that through this savings plan
participants are losing money by having to pay a fee
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Benefits and Limitations
1 When looking at a micro-finance initiative, there are three main benefits and limitations for the
model. These are based on a basic micro-finance initiative though they can be applied to many variations. When looking at the three benefits
and limitations, they revolve around three key ideas, poverty, mistrust,
and promoting change.https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Benefits and Limitations
1 Lastly, a microfinance initiative can promote larger poverty reduction
movements by increasing the financial knowledge of the average
citizen.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Benefits and Limitations
1 Secondly, when creating a microfinance project, time may be an issue
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Benefits and Limitations
1 There are two ways in which the needs of the poor are not being met by micro finance
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Benefits and Limitations
1 Also, there are complications associated with implementing micro-finance projects in
Canada
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Benefits and Limitations
1 Microfinance helps the poor people get access or save funds over a
period of time with low interest rates
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - History of microfinance
1 Microfinance programmes also
need to be based on local funds
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - History of microfinance
1 The history of microfinancing can be traced back as far as the middle of
the 1800s, when the theorist Lysander Spooner was writing about
the benefits of small credits to entrepreneurs and farmers as a way of getting the people out of poverty. Independently of Spooner, Friedrich Wilhelm Raiffeisen founded the first
cooperative lending banks to support farmers in rural Germany.
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Microfinance - History of microfinance
1 The modern use of the expression "microfinancing" has roots in the
1970s when organizations, such as Grameen Bank of Bangladesh with
the microfinance pioneer Muhammad Yunus, were starting and shaping the modern industry of microfinancing.
Another pioneer in this sector is Akhtar Hameed Khan.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance standards and principles
1 It could be claimed that a government that orders state banks to open deposit accounts for poor consumers, or a moneylender that engages in usury, or a charity that runs a heifer pool are engaged in
microfinance
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Microfinance - Microfinance standards and principles
1 Some principles that summarize a century and a half of development practice were encapsulated in 2004 by CGAP and endorsed by the Group of Eight leaders at the G8 Summit on
June 10, 2004:
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Microfinance - Microfinance standards and principles
1 Poor people need not just loans but also savings, insurance and money transfer
services.
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Microfinance - Microfinance standards and principles
1 Microfinance must be useful to poor households: helping them raise income, build up assets and/or
cushion themselves against external shocks.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance standards and principles
1 "Microfinance can pay for itself." Subsidies from donors and
government are scarce and uncertain and so, to reach large numbers of
poor people, microfinance must pay for itself.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance standards and principles
1 Microfinance means building permanent
local institutions.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance standards and principles
1 Microfinance also means integrating the financial needs of poor people
into a country's mainstream financial system.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance standards and principles
1 "Donor funds should complement private capital, not compete
with it."
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance standards and principles
1 "The key bottleneck is the shortage of strong institutions and managers."
Donors should focus on capacity building.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance standards and principles
1 Interest rate ceilings hurt poor people by preventing microfinance
institutions from covering their costs, which chokes off the supply of credit.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance standards and principles
1 Microfinance institutions should measure and disclose their
performance—both financially and socially.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance standards and principles
1 Microfinance is considered a tool for socio-economic development, and can be clearly distinguished from
charity. Families who are destitute, or so poor they are unlikely to be able
to generate the cash flow required to repay a loan, should be recipients of charity. Others are best served by
financial institutions.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Scale of microfinance operations
1 Of these accounts, 120 million were with institutions normally understood to practice
microfinance
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Scale of microfinance operations
1 Considering that most bank clients in the developed world need several
active accounts to keep their affairs in order, these figures indicate that
the task the microfinance movement has set for itself is still very far from
finished.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Scale of microfinance operations
1 By type of service, "savings accounts in alternative finance institutions outnumber loans by about four to
one. This is a worldwide pattern that does not vary much by region."
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Scale of microfinance operations
1 An important source of detailed data on selected microfinance institutions is the MicroBanking Bulletin, which is
published by Microfinance Information Exchange. At the end of 2009, it was tracking 1,084 MFIs that
were serving 74 million borrowers ($38 billion in outstanding loans) and
67 million savers ($23 billion in deposits).
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Scale of microfinance operations
1 The 2011 report contains information on the environment of microfinance
in 55 countries among two categories, Regulatory Framework and the Supporting Institutional
Framework
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Scale of microfinance operations
1 As yet there are no studies that indicate the scale or distribution of 'informal' microfinance
organizations like ROSCA's and informal associations that help people manage costs
like weddings, funerals and sickness. Numerous case studies have been published, however, indicating that these organizations, which are generally designed and managed by poor people themselves with little outside
help, operate in most countries in the developing world.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Scale of microfinance operations
1 Help can come in the form of more and better-qualified staff, thus higher education is needed for microfinance institutions. This has begun in some
universities, as Oliver Schmidt describes. Mind the management
gap
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance in the United States and Canada
1 The average microfinance loan size in the US is US$9,732, ten times the size of an average microfinance loan
in developing countries (US$973).
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Impact
1 According to reports, every domestic
microfinance loan creates 2.4 jobs
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 In the late 1980s, microfinance institutions developed in the US.
They served low-income and marginalized minority communities.
By 2007, there were 500 microfinance organizations operating
in the US with 200 lending capital.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 Change in social welfare policies and focus on economic development and
job creation at the macro level.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 Encouragement of employment, including self-employment, as a
strategy for improving the lives of the poor.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 These factors incentivized the public and private supports to have
microlending activity in the United States.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 ACCION USA, an affiliate of ACCION International, offers microloans and other financial services to low- and moderate-income entrepreneurs for their small businesses who cannot
get financial support through traditional means. Accion Chicago
Accion Texas-Louisiana
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 Founded in 1997 in New York City, Project Enterprise provides support
to entrepreneurs and small businesses in lower income
communities through access to business loans, business
development services, and networking opportunities.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 Based in New York and founded by Muhammed Yunus, Grameen America
provides micro-loans, savings programs, financial education, and credit establishment to low-income
entrepreneurs.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 An example of a Microfinance startup, this organization was
founded by two Brown University students in 2009. Based in
Providence, Rhode Island, CGF provides credit-building business and consumer loans, financial coaching,
and free tax preparation.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 RISE Financial Pathways (formerly
Community Financial Resource
Center)https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - United States
1 Based in Los Angeles, this first public-private partnership of its kind
provides micro-loans, SEED/expansion loans, high interest
savings accounts, financial education & counseling to low and moderate
income entrepreneurs and disinvested communities.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Canada
1 Microfinance in Canada took shape through the
development of credit unions
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Microfinance - Canada
1 Efforts to transfer specific microfinance innovations such as solidarity lending from developing countries to Canada have met with
little success.
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Microfinance - Canada
1 Founded by Sandra Rotman in 2009, Rise is a Rotman and CAMH initiative that provides small business loans,
leases, and lines of credit to entrepreneurs with mental health
and/or addiction challenges.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Canada
1 Formed in 2005 through the merging of the Civil Service Savings and Loan Society and the Metro Credit Union, Alterna is a financial alternative to Canadians. Their banking policy is based on cooperative values and
expert financial advising.
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Microfinance - Canada
1 Access Community Capital Fund
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Canada
1 Based in Toronto, Ontario, ACCESS is a Canadian charity that helps
entrepreneurs without collateral or credit history find affordable small
loans.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Canada
1 Montreal Community Loan
Fund
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Microfinance - Canada
1 Created to help eradicate poverty, Montreal Community Loan Fund provides accessible credit and
technical support to entrepreneurs with low income or credit for start-ups or expansion of organizations
that cannot access traditional forms of credit.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Canada
1 Using the community economic development approach, Momentum offers opportunities to people living in poverty in Calgary. Momentum
provides individuals and families who want to better their financial
situation take control of finances, become computer literate, secure
employment, borrow and repay loans for business, and purchase homes.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Canada
1 Founded in 1946, Vancity is now the largest English speaking credit union in Canada.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Micro Finance in India
1 Loans to poor people by banks have many limitations including lack of
security and high operating cost and so Microfinance was developed as an alternative to provide loans to poor
people with the goal of creating financial inclusion and equality.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Micro Finance in India
1 Muhammad Yunus a Nobel Prize winner, introduced the concept of Microfinance in Bangladesh in the
form of the "Grameen Bank"
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Microfinance - Micro Finance in India
1 Micro Finance is defined as, financial services such as Saving A/c,
Insurance Fund & credit provided to poor & low income clients so as to help them to rise their income &
there by improve their standard of living.
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Microfinance - Micro Finance in India
1 From this definition it is clear that main features of Micro
Financing:
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Microfinance - Micro Finance in India
1 1) Loan are given without security
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Microfinance - Micro Finance in India
1 4) Maximum limit of loan under micro
finance ₨25,000/-
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Microfinance - Micro Finance in India
1 6) Micro Finance is different from Micro Credit- under Micro Credit,
small amount of loans given to the borrower but under Micro Finance besides loans many other financial
services are provided such as Savings A/c, Insurance etc. Therefore Micro Finance has wider concept as
compared to Micro Credit.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - "Inclusive financial systems"
1 The microcredit era that began in the 1970s has lost its momentum, to be
replaced by a 'financial systems' approach. While microcredit achieved a great deal, especially in urban and
near-urban areas and with entrepreneurial families, its progress in delivering financial services in less
densely populated rural areas has been slow.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - "Inclusive financial systems"
1 The new financial systems approach pragmatically acknowledges the
richness of centuries of microfinance history and the immense diversity of
institutions serving poor people in developing world today. It is also
rooted in an increasing awareness of diversity of the financial service
needs of the world’s poorest people, and the diverse settings in which
they live and work.https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - "Inclusive financial systems"
1 Brigit Helms in her book 'Access for All: Building Inclusive Financial
Systems', distinguishes between four general categories of microfinance
providers, and argues for a pro-active strategy of engagement with all of
them to help them achieve the goals of the microfinance movement.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - "Inclusive financial systems"
1 These include moneylenders, pawnbrokers, savings collectors,
money-guards, ROSCAs, ASCAs and input supply shops. Because they
know each other well and live in the same community, they understand
each other’s financial circumstances and can offer very flexible,
convenient and fast services. These services can also be costly and the choice of financial products limited
and very short-term. Informal services that involve savings are also risky; many people lose their money.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - "Inclusive financial systems"
1 These include self-help groups, credit unions, and a variety of hybrid
organizations like 'financial service associations' and CVECAs
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - "Inclusive financial systems"
1 The Microcredit Summit Campaign counted 3,316 of these MFIs and
NGOs lending to about 133 million clients by the end of 2006
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - "Inclusive financial systems"
1 The increasing use of alternative data in credit scoring, such as trade
credit is increasing commercial banks' interest in microfinance.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - "Inclusive financial systems"
1 With appropriate regulation and supervision, each of these
institutional types can bring leverage to solving the microfinance problem. For example, efforts are being made to link self-help groups to commercial
banks, to network member-owned organizations together to achieve
economies of scale and scope, and to support efforts by commercial banks to 'down-scale' by integrating mobile banking and e-payment technologies into their extensive branch networks.
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Microfinance - Microcredit and the web
1 Due to the unbalanced emphasis on credit at the expense of
microsavings, as well as a desire to link Western investors to the sector,
peer-to-peer platforms have developed to expand the availability
of microcredit through individual lenders in the developed world
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microcredit and the web
1 The volume channeled through Kiva's peer-to-peer platform is about $100 million as of November 2009 (Kiva facilitates approximately $5M in
loans each month). In comparison, the needs for microcredit are
estimated about 250 bn USD as of end 2006. Most experts agree that
these funds must be sourced locally in countries that are originating
microcredit, to reduce transaction costs and exchange rate risks.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microcredit and the web
1 There have been problems with disclosure on peer-to-peer sites, with
some reporting interest rates of borrowers using the flat rate
methodology instead of the familiar banking Annual Percentage Rate. The
use of flat rates, which has been outlawed among regulated financial institutions in developed countries, can confuse individual lenders into believing their borrower is paying a
lower interest rate than, in fact, they are.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and social interventions
1 Such interventions like the "Intervention with Microfinance for AIDS and Gender Equity" (IMAGE) which incorporates microfinancing
with "The Sisters-for-Life" program a participatory program that educates
on different gender roles, gender-based violence, and HIV/AIDS infections to strengthen the
communication skills and leadership of women "The Sisters-for-Life" program has two phases where
phase one consists of ten one-hour training programs with a facilitator
with phase two consisting of identifying a leader amongst the
group, train them further, and allow them to implement an Action Plan to
their respective centres.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Microfinance and social interventions
1 This approach shows, that microfinance can not only help
businesses to prosper; it can also foster human development and
social security
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Impact and criticism
1 Most criticisms of microfinance have actually been criticisms of
microcredit. Criticism focuses on the impact on poverty, the level of
interest rates, high profits, overindebtedness and suicides.
Other criticism include the role of foreign donors and working
conditions in companies affiliated to microfinance institutions, particularly
in Bangladesh.https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Impact
1 The impact of microcredit is a subject of much controversy. Proponents
state that it reduces poverty through higher employment and higher
incomes. This is expected to lead to improved nutrition and improved
education of the borrowers' children. Some argue that microcredit
empowers women. In the US and Canada, it is argued that microcredit
helps recipients to graduate from welfare programs.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Impact
1 Critics say that microcredit has not increased incomes, but has driven
poor households into a debt trap, in some cases even leading to suicide. They add that the money from loans is often used for durable consumer goods or consumption instead of
being used for productive investments, that it fails to empower women, and that it has not improved
health or education.https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Impact
1 The available evidence indicates that in many cases microcredit has facilitated the creation and the
growth of businesses
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Role of foreign donors
1 The role of donors has also been questioned
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Working conditions in enterprises affiliated to MFIs
1 There has also been criticism of microlenders for not taking more
responsibility for the working conditions of poor households,
particularly when borrowers become quasi-wage labourers, selling crafts or agricultural produce through an organization controlled by the MFI
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Adams, Dale W., Douglas H. Graham & J. D. Von Pischke (eds.).
Undermining Rural Development with Cheap Credit. Westview Press,
Boulder & London, 1984.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 de Aghion, Beatriz Armendáriz & Jonathan Morduch. The Economics of
Microfinance, The MIT Press, Cambridge, Massachusetts, 2005.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Branch, Brian & Janette Klaehn. Striking the Balance in Microfinance:
A Practical Guide to Mobilizing Savings. PACT Publications,
Washington, 2002.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Dowla, Asif & Dipal Barua. The Poor Always Pay Back: The Grameen II
Story. Kumarian Press Inc., Bloomfield, Connecticut, 2006.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Floro, Sagrario & Pan A. Yotopoulos, Informal Credit Markets and the New
Institutional Economics, Westview Press, Boulder Col., 1991, ISBN 0-
8133-8136-3.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Hirschland, Madeline (ed.) Savings Services for the Poor: An Operational
Guide. Kumarian Press Inc., Bloomfield CT, 2005.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Khandker, Shahidur R. Fighting Poverty with Microcredit, Bangladesh
edition, The University Press Ltd, Dhaka, 1999.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Ledgerwood, Joanna and Victoria White. Transforming Microfinance
Institutions: Providing Full Financial Services to the Poor. World Bank,
2006.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Mas, Ignacio and Kabir Kumar. Banking on mobiles: why, how and for whom? CGAP Focus Note #48,
July 2008.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Rai, Achintya et al. Venture: A Collection of True Microfinance
Stories. Zidisha Microfinance, 2012. (Kindle E-Book,
http://www.amazon.com/Venture-Collection-Microfinance-Stories-
ebook/dp/B009JC6V12.)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Raiffeisen, FW (translated from the German by Konrad Engelmann). The Credit Unions. The Raiffeisen Printing & Publishing Company, Neuwied on
the Rhine, Germany, 1970.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Robinson, Marguerite S., The microfinance revolution, The World Bank, Washington D.C.,
2001.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Roodman, David, Due Diligence: An Impertinent Inquiry into Microfinance,
Center for Global Development, 2012.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Seibel Hans Dieter & Shyam Khadka, "SHG Banking: a financial technology for very poor microentrepreneurs",
Savings and Development, Vol. XXVI, n. 2, 2002, ISSN 0393-4551..
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Microfinance - Further reading
1 Sinclair, Hugh. Confessions of a Microfinance Heretic. Berrett-Koehler Publishers, 2012.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Rutherford, Stuart. The Poor and Their Money. Oxford University Press, Delhi, 2000.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Wolff, Henry W. People’s Banks: A Record of Social and Economic
Success. P.S. King & Son, London, 1910.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Maimbo, Samuel Munzele & Dilip Ratha (eds.) Remittances:
Development Impact and Future Prospects. The World Bank, 2005.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Wright, Graham A.N. Microfinance Systems: Designing Quality Financial Services for the Poor. The University
Press, Dhaka, 2000.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 United Nations Department of Economic Affairs and United Nations Capital Development Fund. Building
Inclusive Financial Sectors for Development. United Nations, New
York, 2006.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Yunus, Muhammad. Creating a World Without Poverty: Social Business and
the Future of Capitalism. PublicAffairs, New York, 2008.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance - Further reading
1 Yunus Muhammad, Moingeon Bertrand & Laurence Lehmann-
Ortega, "Building Social Business Models: Lessons from the Grameen
Experience”, April-June, vol 43, n° 2-3, Long Range Planning, 2010, p.
308-325."
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Long-tail - Microfinance and microcredit
1 The banking business has used internet technology to reach an
increasing number of customers. The most important shift in business model due to the long tail has come
from the various forms of microfinance developed.
https://store.theartofservice.com/the-microfinance-toolkit.html
Long-tail - Microfinance and microcredit
1 As opposed to e-tailers, micro-finance is a distinctly low technology business
https://store.theartofservice.com/the-microfinance-toolkit.html
Long-tail - Microfinance and microcredit
1 Grameen Bank in Bangladesh has successfully followed this business
model. In Mexico the banks Compartamos and Banco Azteca also service this customer demographic,
with an emphasis on consumer credit. Kiva.org is an organization
that provides micro credits to people worldwide, by using intermediaries
called small microfinance organizations (S.M.O.'s)to distribute crowd sourced donations made by
Kiva.org lenders.
https://store.theartofservice.com/the-microfinance-toolkit.html
Joint and several liability - Microfinance
1 In trying to achieve its aim of alleviating poverty, Microfinance
often lends to group of poor, where each member of the group is jointly
liable to each other
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Micro-finance - Microfinance and poverty
1 In developing economies and particularly in rural areas, many
activities that would be classified in the developed world as financial are not monetization|monetized: that is, money is not used to carry them out. This is often the case when people
need the services money can provide but do not have dispensable funds required for those services, forcing them to revert to other means of
acquiring them.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 In his recent book The Poor and Their Money, Stuart Rutherford cites several types of needs:Stuart
Rutherford. The Poor and Their Money. Oxford University Press, New
Delhi, 2000, p. 4. isbn =0-19-565790-X
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 * Lifecycle Needs: such as weddings, funerals, childbirth, education,
homebuilding, widowhood and old age.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 * Personal Emergencies: such as sickness, injury, unemployment, theft, harassment or
death.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 * Disasters: such as fires, floods, cyclones and man-made events like
war or bulldozing of dwellings.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 * Investment Opportunities: expanding a business, buying land or
equipment, improving housing, securing a job (which often requires
paying a large bribe), etc.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 As Marguerite Robinson describes in The Microfinance Revolution, the
1980s demonstrated that microfinance could provide large-
scale outreach profitably, and in the 1990s, microfinance began to
develop as an industry (2001, p.54).
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 * Inappropriate donor subsidies
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 * Poor regulation and supervision of deposit-
taking MFIs
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 * Few MFIs that meet the needs for savings, remittances or
insurance
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 * Institutional inefficiencies
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and poverty
1 * Need for more dissemination and adoption of rural, agricultural microfinance
methodologies
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - History of microfinance
1 Microfinance programmes also need
to be based on local funds
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - History of microfinance
1 The modern use of the expression microfinancing has roots in the 1970s
when organizations, such as Grameen Bank of Bangladesh with
the microfinance pioneer Muhammad Yunus, were starting and shaping the modern industry of microfinancing.
Another pioneer in this sector is Akhtar Hameed Khan.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 It could be claimed that a government that orders state banks to open deposit accounts for poor consumers, or a moneylender that engages in usury, or a charity that
runs a Heifer International|heifer pool are engaged in microfinance
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 #Poor people need not just loans but also savings, insurance and
Electronic funds transfer|money transfer services.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 #Microfinance must be useful to poor households: helping them raise income, build up assets and/or
cushion themselves against external shocks.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 #Microfinance can pay for itself.Helms (2006), p. xi Subsidies from donors and government are
scarce and uncertain and so, to reach large numbers of poor people,
microfinance must pay for itself.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 #Microfinance means building permanent local institutions.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 #Microfinance also means integrating the financial needs of
poor people into a country's mainstream financial system.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 #Donor funds should complement private Financial capital|capital, not compete with it.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 #The key bottleneck is the shortage of strong institutions and managers.
Donors should focus on capacity building.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 #Interest rate ceilings hurt poor people by preventing microfinance
institutions from covering their costs, which chokes off the supply of credit.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 #Microfinance institutions should measure and disclose their
performance—both financially and socially.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance standards and principles
1 Microfinance is considered a tool for socio-economic development, and can be clearly distinguished from
charity. Families who are destitute, or so poor they are unlikely to be
able to generate the cash flow required to repay a loan, should be
recipients of charity. Others are best served by financial institutions.
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Scale of microfinance operations
1 Of these accounts, 120 million were with institutions normally understood to practice
microfinance
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Scale of microfinance operations
1 By type of service, savings accounts in alternative finance institutions outnumber loans by about four to
one. This is a worldwide pattern that does not vary much by
region.Christen, Rosenberg Jayadeva. Financial institutions with
a double-bottom line, pp. 5-6
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Scale of microfinance operations
1 The 2011 report contains information on the environment of microfinance
in 55 countries among two categories, Regulatory Framework and the Supporting Institutional
Framework
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance in the United States and Canada
1 The average microfinance loan size in the US is US$9,732, ten times the size of an average microfinance loan
in developing countries (US$973).
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and social interventions
1 Understanding the impact of a microfinance-based intervention of
women's empowerment and the reduction of intimate partner
violence in South Africa
https://store.theartofservice.com/the-microfinance-toolkit.html
Micro-finance - Microfinance and social interventions
1 Pro Mujer uses a “one-stop shop” approach, which means in one
building, the clients find financial services, business training,
empowerment advice and healthcare services combined.Microinsurance -
Healthy Clients http://www.dandc.eu/en/article/pro-mujer-why-microfinance-institutions-should-offer-healthcare-services-too
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 UNRWA's Microfinance Department (MD) aims to alleviate poverty and support economic development in
the refugee community by providing capital investment and working
capital loans at commercial rates. The programme seeks to be as close to self-supporting as possible. It has
a strong record of creating employment, generating income and
empowering refugees.https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 With operations in three countries, the MD currently has the broadest
regional coverage of any microfinance institution in the Middle
East
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United Nations Relief and Works Agency - UNRWA Microfinance Department
1 The MD works by extending micro-credit and complimentary services to small entrepreneurs, households and
businesses
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 The MD conceives of its mission in the context of the United Nation’s broader vision of building inclusive
financial services for the poor
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 In the intervening six years it has grown into the second largest
microfinance provider in Syria, where it is also the first institution to reach operational self-sufficiency, and the
fifth largest in Jordan
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 The department focuses its outreach on poor urban areas, which are both centres of commercial and industrial
activity and host a high concentration of Palestine refugees
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 'Products and Services:'
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 Through its branch offices the MD provides a range of credit products. Existing products available in the
MD’s markets include the following:
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 :'Microenterprise Credit (MEC):' targets the overwhelming majority of
regional businesses which employ fewer than five workers, most of whom enjoy no access to formal
credit and are vulnerable to shocks. The loans range from USD 300 to
USD 8,500, and are designed to help such businesses build-up and
maintain reserves of short-term working capital.
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 :'Microenterprise Credit Plus (MEC+):' allows mature microenterprises who
seek to expand capital and grow employment to expand MEC
borrowing with more extended repayment horizons. Eligible clients
include formal enterprises and borrowers who have demonstrated repayment ability over several loan
cycles.https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 :'Solidarity Group Lending (SGL):' designed for groups of women
entrepreneurs who are collectively and individually responsible for
repayment. Starting at USD 400, with a maximum ceiling of USD 5,000, the SGL sustains microenterprise, as well
household expenditures on education, health, and basic needs.
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 :'Women’s Household Credit (WHC):' an adaptation of the SGL loan, first piloted in Syria to accommodate
home-based enterprise by women, allowing them to build up household assets used for business. Unlike the SLG product, it does not work on a
group-lending model. Average disbursements are in the range USD
150 to USD 800.https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 :'Consumer Loan Product (CLP):' supports low-income and working-class family consumption, regular
investments in education and health, as well as emergency outlays.
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 :'Housing Loan Product (HLP):' helps poor families with no access to
mortgage facilities improve, expand or acquire housing.
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency - UNRWA Microfinance Department
1 :'Small and Medium Enterprise Business Training (SMET):' an
enterprise training program in Gaza that trains participants in subjects such as book-keeping, taxation,
tendering, computing and e-commerce.
https://store.theartofservice.com/the-microfinance-toolkit.html
Cooperative banking - Microcredit and microfinance
1 The more recent phenomena of microcredit and microfinance are
often based on a cooperative model They focus on small business
lending. In 2006, Muhammad Yunus, founder of the Grameen Bank in
Bangladesh, won the Nobel Peace Prize for his ideas regarding
development and his pursuit of the microcredit concept.
https://store.theartofservice.com/the-microfinance-toolkit.html
Fairplay For All Foundation - Microfinance
1 People living in areas like Payatas rarely have access to financial instruments such as credit and
savings. Through FFA’s microfinancing programs, families of the children the charity works with can avail of low-interest or interest-
free loans, usually for medical emergencies or for starting small
businesses. Any income generated is then reinvested for future
microfinancing needs.
https://store.theartofservice.com/the-microfinance-toolkit.html
Islamic banking - Microfinance
1 Already, several microfinance institutions (MFIs) such as FINCA
Afghanistan have introduced Islamic-compliant financial instruments that
accommodate sharia criteria.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange
1 'Microfinance Information Exchange, Inc.' (commonly known by its acronym 'MIX') is a
non-profit organization that acts as a business information provider in the microfinance sector. Founded by the Consultative Group to Assist the
Poor (CGAP) and sponsored by the Bill and Melinda Gates Foundation, CGAP, Citigroup|Citi
Foundation, Deutsche Bank|Deutsche Bank Foundation, IFAD, and Omidyar Network, MIX is
headquartered in Washington DC, and has regional offices in Peru, Morocco, and India.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - Business Information Provider
1 In providing objective data and analysis on microfinance providers, MIX hopes to promote transparency (market)|financial transparency in the industry, build the
information infrastructure in developing countries, and offer those involved in microfinance (practitioners, funders,
policy makers, academia) a way to gain a better understanding of MFI operations,
challenges, and performance trends.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - MIX Market
1 MIX Market is MIX’s platform for delivering microfinance information.
Described as the “microfinance information clearinghouse,” MIX
Market provides online data on over 1800 microfinance institutions (MFIs)
and 100 investors.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - MIX Market
1 'MIX Market Statistics' – As of July 20, 2010, 1,834 MFIs were reporting data to MIX. Those MFIs total $43.8 billion
USD in gross loan portfolio, $23.7 billion USD in deposits, 81.4 million
borrowers, and 593.1 in average loan balance per borrower.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - MIX Market
1 'Data Collection and Analysis' - After receiving self-reported data from
MFIs, MIX Financial analyst|analysts “review the data, ensuring there are
no outliers and extremes. [They] double check against source
documents such as audits and ratings, and standardize [the data]
according to internationally accepted accounting standards and to provide
for a more useful intra-regional comparison.”
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - MIX Market
1 'Data Products' - The main data products of the MIX Market include 'MFI Profiles' (including Economic
indicator|Financial Indicators, wikt:trend|Trends, and
Benchmarking|Benchmarks), 'Country-level and Regional profiles', 'Funding Structure Data', and 'Social
Performance Reports'.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - MIX Market
1 * 'MFI profiles' – The most basic medium through which data can be accessed on MIX Market is through individual MIX Market MFI profiles
which provide financial, operational, and social performance data as well
as relevant documents, such as audits. With this data, users can view
and compare performance data of several MFIs (by countries,
indicators, and trends), create customizable performance and trend reports, and create benchmarks to view aggregated data in median
values.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - MIX Market
1 * 'Country-level and Regional Profiles' – These options permit a wider
perspective on MFI performance data, allowing users to view
information on a country-level scale or a regional scale. MIX Market
currently has country profiles for 115 countries divided into six regions: Africa or Sub-Saharan Africa (SSA), Latin America and The Caribbean
(LAC), East Asia and the Pacific (EAP), Middle East and North Africa (MENA),
Eastern Europe and Central Asia (EECA), and South Asia (SA).
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - MIX Market
1 * 'Funding Structure Data' – Launched in June 2010, MIX Market’s
Funding Structure Data provides information on debt financing
sources for microfinance institutions. The Funding Structure Data cover over 15 billion USD of outstanding debt, ranging from local to foreign, public and private funding sources, and covering 86 countries and 890 MFIs, representing over 90% of all
borrowers. The database allows users to aggregate data by country, funder
type, and other variables.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - MIX Market
1 Additionally, MIX manages the Social Performance Task Force (SPTF)-sponsored 'Social Performance
Indicators Blog', which a medium for learning and exchange on topics related to social performance in
microfinance
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - MIX Market
1 MFIs, funders (public and private funds that invest in microfinance), MFI networks, and microfinance
service providers (academic institutions, Investment management|fund managers, development
programs, peer-to-peer lenders, private corporations, raters/external evaluators, advisory firms, and governmental and regulatory agency|
regulatory agencies) can create and update these profiles with their most recent business information
(including company overview, website and other contact information, and products) as well as
financial and operational data and documentation.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - Publications
1 The semiannual 'MicroBanking Bulletin' publishes financial and
portfolio data provided voluntarily by MFIs and organized by peer groups. It includes peer reviewed articles from
microfinance practitioners and academics on topics related to
transparency and benchmarking.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - Publications
1 'Regional Analysis, Benchmarking, and Trend Reports' are published yearly after the end of the data collection and provide industry
analysis including updates on broad economic, legal, and performance
developments. These reports include regional benchmarks for financial and operational indicators for the
upcoming year and provide a means by which to continually evaluate MFI
performance.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance Information Exchange - Publications
1 'Data briefs' draw on MIX Market datasets to provide empirical and
theoretical analysis on broader topics within the microfinance industry.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania
1 'Microfinance in Tanzania' began with NGOs and SACCOs (Savings and
Credit Cooperative Organizations) in 1995 and has continued to grow with
the increased success of microfinance internationally.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania
1 There are additional organizations involved in microfinance in Tanzania, including FINCA International|FINCA,
PRIDE and SEDA as well as the Tanzania Postal Bank
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania
1 A recent 2005 survey done by the Bank of Tanzania (the overseer of microfinance
under the Ministry of Finance) updated the directory of microfinance practitioners and includes basic information on microfinance
institutions including commercial banks, financial institutions, financial Non-
Governmental Organizations (NGO), Savings and Credit Cooperatives Societies (SACCOs)
and Savings and Credit Associations (SACAs)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - National Microfinance Bank
1 It plans to add 16 more branches and offices that can offer microfinance services.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - National Microfinance Bank
1 The primary microfinance product offered and stressed are savings deposits which is the easiest to
obtain at NMB and quite reliable as well.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - National Microfinance Bank
1 NMB’s specific strategy towards microfinance is unique in that they link large corporate customers to
microfinance loan customers. NMB calls this the Kilombero strategy after
they linked the loans given to the Kilombero sugar Company to sugar cane out-growers. The Kilombero
strategy encourages growth through loans for the use of capital and growth to both small and large
enterprises.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - National Microfinance Bank
1 NMB encourages and expands microfinance in
three ways:
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - National Microfinance Bank
1 * Loans to micro and small enterprises for the purchase and inventory and supply of goods
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - National Microfinance Bank
1 * Add-on services such as money transfers and payroll services to both the large corporate clients and micro
and small enterprises
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - AKIBA Bank
1 Being a bank without as much outreach as a bank such as the
National Microfinance Bank, AKIBA has an easier time focusing on its
microfinance operations and is able to measure its success at a quicker
and easier than NMB
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - AKIBA Bank
1 AKIBA attributes its success to providing services outside the normal
financial institution in teaching invaluable business practices as well as focusing on savings and deposits.
The growth in deposits can be attributed to the increase in micro
loans and the motivation for attaining loans through microfinance as well as additional success in other
banking areas.https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - AKIBA Bank
1 In preparation for these challenges, AKIBA has every intention to remain in microfinance and anticipates great
success.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - AKIBA Bank
1 One interesting aspect of AKIBA is that 80% of their customers have never held a bank account of any
form of savings account at an institution before. This is because
most banks have turned these people down due to their lack of prior credit. AKIBA attributes their success
to being able to gain these clients and then teaching them “the culture
of savings.https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - CRDB Ltd.
1 However, unlike the other three commercial banks in microfinance, its primary source of funding comes
from The Danish International Development Agency (DANIDA)
which serves as one of CRDB’s single largest share-holders.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - CRDB Ltd.
1 And its total loans and advances (including microfinance loans to
smaller microfinance institutions) is US$ 60 million.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance in Tanzania - Tanzania Postal Bank
1 The Tanzania Postal Bank is the 4th commercial bank” that is involved in
microfinance. Like the National Microfinance Bank, the Tanzania
Postal Bank was created by an Act of Parliament and like the previous three banks, it too is under the Companies Registrar and under
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution
1 'Microfinance' is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services. The two main
mechanisms for the delivery of financial services to such clients are:
(1) relationship-based banking for individual entrepreneurs and small businesses; and (2) group-based
models, where several entrepreneurs come together to apply for loans and
other services as a group.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution
1 For others, microfinance is a way to promote economic development,
employment and growth through the support of micro-entrepreneurs and
small businesses.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Interest rates
1 The high costs of traditional microfinance loans limit their
effectiveness as a poverty-fighting tool
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Benefits and Limitations
1 The limitations of microfinance are that through this savings plan participants are losing money by having to pay a fee. The
user can also pay back their loans whenever they choose therefore encouraging a
borrower to have various outstanding loans. The lender is also vulnerable in that there is no guarantee of the loan being repaid in the
given arranged timeframe, and the consequences to defaulting are not defined.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Scale of microfinance operations
1 The 2011 report contains information on the environment of microfinance
in 55 countries among two categories, Regulatory Framework and the Supporting Institutional
Framework
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Microfinance in the United States and Canada
1 The average microfinance loan size in the US is US$9,732, ten times the size of an average microfinance loan
in developing countries (US$973).
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - United States
1 In the late 1980s, microfinance institutions developed in the United States. They served low-income and marginalized minority group|minority
communities. By 2007, there were 500 microfinance organizations
operating in the US with 200 lending capital.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - United States
1 # Change in social welfare policies and focus on economic development and job creation at the macro level.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - United States
1 # Encouragement of employment, including self-employment, as a
strategy for improving the lives of the poor.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - United States
1 *'RISE Financial Pathways (formerly
Community Financial Resource Center)'
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Micro Finance on the Indian Subcontinent
1 Loans to poor people by banks have many limitations including lack of
security and high operating costs. As a result, microfinance was developed as an alternative to provide loans to poor people with the goal of creating
financial inclusion and equality.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Micro Finance on the Indian Subcontinent
1 The National Bank for Agriculture and Rural Development (NABARD) took this idea and started the concept of
microfinance in India
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Micro Finance on the Indian Subcontinent
1 Microfinance is defined as, financial services such as savings accounts, insurance funds and credit provided to poor and low income clients so as to help them increase their income, thereby improving their standard of
living.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Micro Finance on the Indian Subcontinent
1 In this context the main features of microfinance are:
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Micro Finance on the Indian Subcontinent
1 * Loan given without security
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Micro Finance on the Indian Subcontinent
1 * Maximum limit of loan under micro finance
₨25,000/-
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Micro Finance on the Indian Subcontinent
1 * Microfinance is different from Microcredit- under the later, small
loans are given to the borrower but under microfinance alongside many
other financial services including savings accounts and insurance.
Therefore microfinance has a wider concept than microcredit.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Micro Finance on the Indian Subcontinent
1 In June 2014, CRISIL released it's latest report on the Indian Microfinance Sector titled
India's 25 Leading MFI's.[http://indiamicrofinance.com/microfinance-companies-in-india-2014-2015-2.html Top
Microfinance Institutions in India for 2014] CRISIL Report, June 2014. This list is the most
comprehensive and up to date overview of the microfinance sector in India and the
different microfinance institutions operating in the sub-continent.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Inclusive financial systems
1 The microcredit era that began in the 1970s has lost its momentum, to be
replaced by a 'financial systems' approach. While microcredit
achieved a great deal, especially in urban and near-urban areas and with entrepreneurial families, its progress in delivering financial services in less
densely populated rural areas has been slow.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Inclusive financial systems
1 ;Informal financial service providers: These include moneylenders,
pawnbrokers, savings collectors, money-guards, ROSCAs, ASCAs and
input supply shops
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Inclusive financial systems
1 ;Member-owned organizations: These include Self-help group (finance)|self-
help groups, credit unions, and a variety of hybrid organizations like 'financial service associations' and
CVECAs
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Inclusive financial systems
1 ;NGOs: The Microcredit Summit Campaign counted 3,316 of these
MFIs and NGOs lending to about 133 million clients by the end of 2006
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Inclusive financial systems
1 The increasing use of alternative data in credit scoring, such as trade
credit is increasing commercial banks' interest in microfinance.
[http://www.infopolicy.org/_working/files/downloads/South-Africa-
compressed-web.pdf Turner, Michael, Robin Varghese, et al
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Inclusive financial systems
1 With appropriate regulation and supervision, each of these institutional types can bring
leverage to solving the microfinance problem. For example, efforts are being made to link
self-help groups to commercial banks, to network member-owned organizations
together to achieve economies of scale and scope, and to support efforts by commercial banks to 'down-scale' by integrating mobile banking and e-payment technologies into
their extensive branch networks.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Microcredit and the web
1 In 2009, the US-based nonprofit Zidisha became the first peer-to-peer microlending platform to link lenders
and borrowers directly across international borders without local
intermediaries.[http://www.microfinancefocus.com/news/2010/02/07/zidis
ha-set-to-expand-in-peer-to-peer-microfinance-julia-kurnia/ Zidisha Set
to Expand in Peer-to-Peer Microfinance, Microfinance Focus,
Feb 2010]
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Microcredit and the web
1 The volume channeled through Kiva (organization)|Kiva's peer-to-peer
platform is about $100 million as of November 2009 (Kiva facilitates approximately $5M in loans each
month). In comparison, the needs for microcredit are estimated about 250
bn USD as of end 2006.[http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000219174.pdf Microfinance:
An emerging investment opportunity]. Deutsche Bank
Research. December 19, 2007.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Microcredit and the web
1 MicroFinance Transparency
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Microfinance and social interventions
1 Pro Mujer uses a “one-stop shop” approach, which means in one
building, the clients find financial services, business training,
empowerment advice and healthcare services combined.Microinsurance -
Healthy Clients http://www.dandc.eu/en/article/pro-mujer-why-microfinance-institutions-should-offer-healthcare-services-too
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Mission Drift in Microfinance
1 Mission Drift refers to the phenomena through which the MFIs
or the micro finance institutions increasingly try to cater to customers who are better off than their original
customers, primarily the poor families
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Mission Drift in Microfinance
1 (2009) “Microfinance Mission Drift?” But in either way, this problem of
selective funding leads to an ethical tradeoff where on one hand there is
an economic reason for the company to restrict its loans to only the
individuals who qualify the standards, and on the other hand there is an ethical responsibility to
help the poor people get out of poverty through the provision of
capital.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfinance institution - Role of foreign donors
1 The role of donors has also been questioned
https://store.theartofservice.com/the-microfinance-toolkit.html
Innovations for Poverty Action - Microfinance
1 IPA performs many evaluations of microfinance programs and products, including microcredit, microsavings, and microinsurance. IPA is part
of the Financial Access Initiative (FAI), a consortium launched with the support of a $5
million grant from the Bill Melinda Gates Foundation with the goal of increasing
knowledge about microfinance and communicating research lessons to a broad
spectrum of policy makers, microfinance institutions, and the public at large.
https://store.theartofservice.com/the-microfinance-toolkit.html
Innovations for Poverty Action - Microfinance
1 Some examples of IPA's research on microfinance include examinations of
the impact of group liability and commitment savings
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Bangladesh Association for
Community Education (BACE)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Center for Community
Development Assistance (CCDA)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Centre for Rehabilitation Education
Earning Development (CREED)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Environment Council Bangladesh
(ECB)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Integrated Community
Development Association (ICDA)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Mohila Bohumukhi Sikkha Kendra
(MBSK)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #New Era Foundation
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Patakuri Society
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Social Advancement Through Unity (SATU)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Shariatpur Development Society (SDS)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Social Upliftment Society (SUS)
https://store.theartofservice.com/the-microfinance-toolkit.html
Microfin360 - Partners' links[http://www.microfin360.com/index.php/en/component/content/art
icle/10-community/9-list-of-partners List of partners][http://datasoft-bd.com/functional-domains/microfinance Microfinance Clients]
1 #Thengamara Mohila Sabuj
Sangha|Thengamara Mohila Sabuj
Sangha (TMSS)https://store.theartofservice.com/the-microfinance-toolkit.html
National Bank for Agriculture and Rural Development - Microfinance and NABARD
1 Thus the Reserve Bank of INDIA and NABARD has laid out certain guidelines in 06-07 for the
commercial banks, Regional Rural Banks and Cooperative Banks to
provide the data to RBI and es data regarding loans given by banks to
the microfinance institutions.
https://store.theartofservice.com/the-microfinance-toolkit.html
MercyCorps - Fostering microfinance
1 Partnering with banks and founding banking institutions, Mercy Corps
facilitates microfinance around the world.[http://www.mercycorps.org.uk/
topics/microfinance/11281 Microfinance Partners #124; Mercy
Corps]
https://store.theartofservice.com/the-microfinance-toolkit.html
MercyCorps - Fostering microfinance
1 * AFS (Ariana Financial Services
Group), Kabul
https://store.theartofservice.com/the-microfinance-toolkit.html
MercyCorps - Fostering microfinance
1 * CFPA (Chinese Foundation for Poverty
Alleviation), China
https://store.theartofservice.com/the-microfinance-toolkit.html
MercyCorps - Fostering microfinance
1 * MICRA (Microfinance Innovation Centre for Resources and Alternatives), Indonesia
https://store.theartofservice.com/the-microfinance-toolkit.html
MercyCorps - Fostering microfinance
1 * PATRA (Poverty Alleviation in the
Tumen River Area), China
https://store.theartofservice.com/the-microfinance-toolkit.html
MercyCorps - Fostering microfinance
1 * CHAM (Community Health and Microcredit),
Guatemala
https://store.theartofservice.com/the-microfinance-toolkit.html
Microcredit Summit Campaign - Microfinance access
1 By December 31, 2010, the Campaign counted more than 3,600
microfinance institutions that reported reaching more than 205 million clients with a current loan
https://store.theartofservice.com/the-microfinance-toolkit.html
Microcredit Summit Campaign - Microfinance access
1 According to the [http://www.microcreditsummit.org/pubs/reports/socr/2012/WEB_SOCR-
2012_English.pdf State of the Microcredit Summit Campaign Report
2012], out of the total number of clients reached in 2010, 137.5 million
were among the poorest and 82.3 percent (113.1 million) were women.
https://store.theartofservice.com/the-microfinance-toolkit.html
Microcredit Summit Campaign - Microfinance access
1 The growth in the number of very poor women reached has gone from
10.3 million at the end of 1999 to 113.1 million at the end of 2010. This
is a 1,001 percent increase in the number of poorest women reached
from December 31, 1999 to December 31, 2010. The increase
represents an additional 109.9 million poorest women receiving
microloans in the last 11 years.http://www.microcreditsummit.
org/SOCRs/SOCR2009_English.pdf
https://store.theartofservice.com/the-microfinance-toolkit.html
Microcredit Summit Campaign - Microfinance access
1 Of the 137.5 million poorest clients, 122.5 million of them (89 percent) are being served by the 85 largest individual institutions and networks reporting to the Campaign, all with 100,000 or more poorest clients.
https://store.theartofservice.com/the-microfinance-toolkit.html
Cooperative banking - Microcredit and microfinance
1 The more recent phenomena of microcredit and microfinance are
often based on a cooperative model. These focus on small business
lending. In 2006, Muhammad Yunus, founder of the Grameen Bank in
Bangladesh, won the Nobel Peace Prize for his ideas regarding
development and his pursuit of the microcredit concept.
https://store.theartofservice.com/the-microfinance-toolkit.html
Queen Rania of Jordan - Microfinance
1 In September 2003, Queen Rania accepted an invitation to join the
Board of Directors of the Foundation for International Community
Assistance (FINCA), thus formalizing a relationship of support and
advocacy which began in 2000.[http://www.villagebanking.org/site/c.
erKPI2PCIoE/b.2394309/k.2E2B/Press_Wire.htm FINCA’S FINCA
International Welcomes Queen Rania Al Abdullah, First Lady of the
Hashemite Kingdom of Jordan, to Its Board of Directors], 15 September
2003.
https://store.theartofservice.com/the-microfinance-toolkit.html
Queen Rania of Jordan - Microfinance
1 An emissary for the United Nations’ International Year of Microcredit in 2005,
Queen Rania’s belief in microfinance and her partnership with FINCA has generated more Jordanian micro-businesses, with the official opening of FINCA Jordan in February 2008.
[http://www.jordantimes.com/?news=5963searchFor=FINCA%20Jordan Queen highlights power of microfinance, tours FINCA Jordan microbusinesses], 26
February 2008.
https://store.theartofservice.com/the-microfinance-toolkit.html
Bangko Sentral ng Pilipinas - Microfinance and financial inclusion
1 In 2000, the [http://www.bsp.gov.ph/regulations/la
ws_gbl.asp General Banking Law] mandated the BSP to recognize
microfinance as a legitimate banking activity and to set the rules and
regulations for its practice within the banking sector. In the same year, the
BSP declared microfinance as its flagship program for poverty
alleviation. The BSP has become the prime advocate for the development
of microfinance. To this end, the Bangko Sentral aims to:
https://store.theartofservice.com/the-microfinance-toolkit.html
Bangko Sentral ng Pilipinas - Microfinance and financial inclusion
1 # Provide the enabling policy and regulatory
environment;
https://store.theartofservice.com/the-microfinance-toolkit.html
Bangko Sentral ng Pilipinas - Microfinance and financial inclusion
1 # Promote and advocate for the development of sound and sustainable microfinance
operations.
https://store.theartofservice.com/the-microfinance-toolkit.html
Bangko Sentral ng Pilipinas - Microfinance and financial inclusion
1 The Bank is active in promoting a financial inclusion policy and is a
leading member of the [http://www.afi-global.org Alliance for
Financial Inclusion]
https://store.theartofservice.com/the-microfinance-toolkit.html
United Nations Relief and Works Agency for Palestine Refugees in the Near East - UNRWA Microfinance DepartmentFrom UNRWA's page and
subpages about the Microfinance Department [http://www.unrwa.org/what-we-do/microfinance] No update date
shown; accessed 2014-08-25
1 Key Figures - cumulative as of 2014:
https://store.theartofservice.com/the-microfinance-toolkit.html
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