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Cambodian MFIs relax stance on rates cap
Microfinance institutions will not object to an 18 percent cap on interest rates which comes into effect on April 1, a senior official from the Cambodia Microfinance Association said. Association president Hout Ieng Tong said yesterday they would not seek a rise in the rate because the government had considered the issue thoroughly before ordering the cap.
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- Uncategorized
- Region
- South Asia
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Economy & Nation Defaults rising in MFI loan book post demonetisation
Post demonetisation, the delinquencies in microfinance institutions (MFI) loan books are rising. Ratings agency ICRA recently downgraded its outlook on two prominent MFIs to negative from stable, mainly due to limited currency supply and disruption in borrower cash flows, which hampered overall the collection efficiency of these lenders
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- Technology
- Region
- South Asia
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Asian Development Bank and Credit Access Asia Sign $32 Million Deal to Improve Financial Inclusion in Asia
The Asian Development Bank signed a €30 million ($32 million) equity investment agreement with CreditAccess Asia, a holding company headquartered in Amsterdam, that operates microfinance institutions across Asia, currently serving approximately 1.8 million customers, 99.8% of whom are women.
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- Investing
- Region
- South Asia
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Social Business Roundup: The Problem with Sachets, the Beauty of Rats and the Dark Side of Cross-Selling
Everyone seems to love the products in individually-sized sachets being sold at the BoP ... except for Mother Nature. Ethiopia's only too happy to roll out the welcome mat for some rats with amazing TB-sniffing skills. A questionable cross-selling strategy in South Africa harms a vulnerable population and raises uncomfortable questions about financial inclusion. It's all part of our weekly Social Business Roundup.
- Categories
- Environment, Health Care, Social Enterprise, Technology
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Viewpoint: Cambodia’s interest rate cap will hurt rural families
On March 13, the National Bank of Cambodia announced a major new policy. Starting April 1, all microfinance institution operating in Cambodia will be required to lend at interest rates no higher than 18 percent per year. This is a deeply misguided regulation that will undo over a decade’s worth of successful financial policies.
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- Uncategorized
- Region
- South Asia
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How Water.org ‘Took a Leap of Faith’ into Social Impact Investing
As we recognize World Water Day, Water.org is launching a $50 million fund, targeting enterprises in India, Indonesia, Cambodia and the Philippines that help the poor meet their water and sanitation needs – with a particular focus on MFIs. This seven-year fund, managed by the nonprofit's WaterEquity initiative, aims to reach at least 4.6 million people at the BoP, while offering pre-tax financial returns of 3 percent.
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- Environment, Impact Assessment, Investing, Social Enterprise
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Will Move to Cap Microfinance Interest Rates Backfire in Cambodia?
Some analysts say the move is unlikely to help reduce poverty, and could throw the country’s microfinance system into disarray.
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- Uncategorized
- Region
- Asia Pacific
- Tags
- microfinance, regulations
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Social Business Roundup: SOCAP Aims for the Mainstream, Cambodia Caps Microcredit, Quali Health Simplifies Health Care
In announcing its new ownership, SOCAP mentioned the word “mainstream” six times – the popular social business and investing conference is clearly aiming to grow beyond its current niche. In Cambodia, the National Bank capped interest on microcredit to a maximum of 18 percent per year – about half of what some MFIs currently charge. And a visit to India inspired a South African doctor to launch a profitable health care clinic in a local shantytown. These stories and more in our weekly roundup.
- Categories
- Environment, Health Care, Investing
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