Microfinance

Small, local banks are better

In guest article in The Economist, health Justin Lin, chief economist at the World Bank recommends that developing countries take a different approach to banking than the developed countries. Instead of focusing on building out advanced stockmarkets and encouraging large diversified global banks, developing nations should instead focus on encouraging small, local banks which focus… Continue reading Small, local banks are better

Microfinance

Kiva provides microloans in USA

Kiva, a pioneer in making microlending participation possible for almost anyone in the USA at $25 at a time, has focused to date on lending to microbusinesses in developing/low-resource countries. Many of these loans were a few $100’s with the largest around $1,000 per individual business. Recently has begun facilitating loans to low-income self-employed entrepreneurs… Continue reading Kiva provides microloans in USA

Microfinance

India microfinance and tightening credit markets

I was recently in India and had the chance to meet with a number of microfinance CEOs, bankers and insiders in the microfinance industry including Unitus, Unitus Capital and Unitus Equity Fund staff. One of my key inquiries was how was the global financial crisis affecting MFIs ability to access capital. Accessing capital from 3rd… Continue reading India microfinance and tightening credit markets

Microfinance

Credit Default Swaps vs. Microloans

Alex Raksin posted a good open letter to the World Economic Forum meeting today in Davos called “By the people, for the people” in response to the WEF’s chairman and founder, Klaus Schwab’s opening question, “Where should leaders look to find a new transformative vision for international finance?” Raksin contrasts the efficacy of microfinance with… Continue reading Credit Default Swaps vs. Microloans

Microfinance

Microfinance Heats up in East Africa

With BRAC’s (Bangladesh Rural Advancement Committee) recent announcement of their successful raise of $62M for their Africa Loan Fund, a new benchmark/milestone has been reached for the potential growth in microfinance in East Africa. For the underdeveloped East Africa microfinance market, this is a huge amount of commercial debt capital to support BRAC’s ambitious goal… Continue reading Microfinance Heats up in East Africa