A BI-MONTHLY NEWSLETTER WHICH DISSEMINATES INFORMATION ON IMPROVING ACCESS TO FINANCIAL SERVICES SEPTEMBER 2010 | ISSUE No. 33 Creating Value with Leasing in Emerging PAYMENT SYSTEMS AND Markets REMITTANCES By Minerva Kotei, Global Product Leader, IFC Access to Finance Advisory Global Payments Week 2010. The biannual event organized by the World Bank. Amsterdam, The Netherlands. RATIONALE October 19-22, 2010. (more on page 5) Leasing provides a means to deliver increased domestic investment within economies. NONBANK FINANCIAL INSTITUTIONS By developing additional financial tools such as leasing or mortgages, countries are able (LEASING, HOUSING FINANCE to deepen the activities of their financial sector by introducing new products and/or INSURANCE) industry players. Insurance in Developing Countries: Although leasing is used as a means of asset financing by all business types for assets Exploring Opportunities in Micro- insurance. The potential market for worth tens of dollars to tens of millions of dollars, its key benefit is the access it provides insurance in developing countries is those without a significant asset base: leasing enables small enterprises to leverage an estimated to be between 1.5 and 3bn initial cash deposit, with the inherent value of the asset being purchased acting as policies ... (more on page 9) collateral. These small businesses do not have other assets that could serve as collateral for loans or other types of secured lending within countries where unsecured lending is not CREDIT REPORTING & COLLATERAL REGISTRIES an option. Developing leasing allows smaller scale entrepreneurs to become more economically active by enabling access to finance and, subsequently, access to income- Vietnam’s First Credit Bureau (PCB) Launches. The bureau is expected to producing assets. Also, leasing offers an important advantage in countries with weak supply highly credible credit business environments, particularly those with weak creditor’s rights and collateral laws information about individuals and and registries, such as countries where secured lenders do not have priority in the case of organizations … (more on page 11) default. Jordan, IFC Sign Accord to Set Up First As a result, leasing is sometimes the only financial tool available to provide small and Movable Asset Registry. Jordan and the medium enterprises (SMEs) with medium term finance to support investments in International Finance Corporation productive and logistic assets. A dynamic leasing sector can greatly benefit the economy (IFC), a member of the World Bank of a country as it creates access to finance that, in turn, can create employment Group ... (more on page 12) opportunities. INCLUSIVE FINANCIAL SYSTEMS Leasing also plays a critical role in bringing small businesses into the formal financial Financial Access 2010: The State of system. As informal businesses have access to lease financing, they start building a history Financial Inclusion Through The of financial transactions. When the appropriate credit information-sharing infrastructure Crisis. Financial Access 2010 extends to is in place, banks and other financial institutions can access these records, better manage 142 countries ... (more on page 14) risks, and start providing more comprehensive financial services to these small businesses. With this new opportunity, small businesses find a new incentive to join the formal sector. AccessFinance is published by the Emerging economies almost always have an undercapitalized banking system that can Financial & Private Sector Development only offer its potential clients a limited range of products. For their part, the SMEs in Vice Presidency of the World Bank Group emerging economies possess insufficient collateral or credit history to access more Editors: Bikki Randhawa, Leila Search traditional bank finance. This results in a shortage of available credit to domestic Layout/Production: Aichin Lim Jones entrepreneurs. Developing the leasing sector as a means of delivering finance increases Editorial Committee: Massimo Cirasino, the range of financial products in the marketplace and provides a route for accessing Maria Teresa Chimienti, Shalini finance for businesses that would otherwise not have it, thus promoting domestic Sankaranarayanan, Vijay Kalavakonda, production, economic growth and job creation. Alejandro Alvarez de la Campa (more on page 2) For subscription, please visit us online at AccessFinance. For comments/suggestions, please send to This article was culled from a World Leasing Yearbook 2010 article by Minerva Kotei and firstname.lastname@example.org. Ary Naïm. ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 2 Creating Value with Leasing in Emerging Markets (continued from page 1) Many developing countries suffer from between loans and leases to the benefit of bank and non-bank institutions in the areas weak or imperfect legal institutions. SME clients and overall economic of governance, strategy, risk management Although in principle secured lending and development. In many cases, regulations and operations. leasing should be roughly equivalent in either did not exist, did not take into IFC’s most pivotal role in leasing terms of risk, experience in many account the specific characteristics of leasing investments has been that of project catalyst, jurisdictions has shown that legal ownership or their application and interpretation were bringing together domestic sponsors, is recognized by all participants, especially uncertain because of lack of precedent. More foreign technical/financial partners and, courts, more readily and consistently than and more governments have turned to IFC where needed most, government authorities secured lending. This can reduce the risk to for help in laying out the groundwork for to ensure that the project is commercially lenders (lessors) considerably. The value of leasing development as they recognize these viable, organized on sound management, this advantage of leasing should not be weaknesses. operating and financial principles and will underestimated, particularly in more Building on fundamental support to the be operated in a conducive regulatory challenging environments. industry, advisory work is now focused on environment. The formulation and institution building activities to help set up establishment of operating policies provide LEASE MARKET DEVELOPMENT and expand strong leasing businesses and leasing companies with a specialized focus Creating a sustainable leasing industry in thereby facilitate the development of a on industrial equipment and, in many cases, developing countries requires investment strong and sustainable leasing industry. on small and medium-sized borrowers. and technical know-how provided to policy- Advisory services are now targeted at leasing makers, regulators and private-sector players. To address this specific need, IFC provides advisory programs that are co- financed by multilateral and bilateral donors LEASING PROVIDES ACCESS TO FINANCE UZBEKISTAN’S SMES to increase micro, small, and medium enterprises (MSMEs) access to term Uzbek Leasing has been a partner in the IFC Leasing Advisory Program in equipment financing and broaden local Central Asia since 2002 and has further strengthened its operational capacity. The financial markets. Direct advisory services leasing sector in Uzbekistan is still small but growing rapidly. IFC played a role in are provided to leasing clients in the areas of developing the leasing sector in Uzbekistan, helping to amend 11 pieces of operations, strategy, risk management and legislation to facilitate leasing in the country. As a result of these regulatory governance as well as broad support to the improvements, targeted support at the company level and increased awareness, leasing industry in developing countries, the leasing market in Uzbekistan has grown by US$220 million from 2001 to2007. addressing constraints through policy and regulatory work, advocacy and awareness- The company’s clients are private SMEs, whose growth is critical for the raising. development of Uzbekistan’s economy. With total assets of $7.1 billion equivalent Many countries face structural obstacles and declining banking penetration rates, the financing needs of the private sector, in developing a leasing industry: the absence particularly SMEs, were not being met. Without access to term finance, SMEs are of clearly defined and predictable laws and unable to implement investment plans and modernize existing facilities. Many regulations governing leasing transactions, small companies raised funds on the curb market, in cash, and often at unclear accounting standards, the lack of an significantly higher interest rates. IFC provided advisory services to Uzbek appropriate tax regime, impaired funding Leasing and granted them a loan targeted at addressing the scarcity of term abilities and/or the absence of an foreign currency financing available for businesses to fund imported production appropriate regulatory and supervisory equipment. In addition to supplying funding and boosting domestic investment, framework. IFC has found that leasing the project should increase employment in the country and contribute to typically does not need to be granted any tax development of best practice. or regulatory advantage to develop. However, without specific texts and In August 2008, IFC committed a $3 million loan to Uzbek Leasing regulations, leasing is at a disadvantage vis- International, the first leasing company established in Uzbekistan. Today Uzbek à-vis loans that are better understood by the Leasing, which has IFC as one of its four shareholders, is one of the leading and judicial, financial and commercial system. most successful leasing companies in the country. Uzbek Leasing has served as a Therefore, the focus is to help governments model that has led other leasing companies to launch operations in Uzbekistan. establish a level-playing field for leasing, allowing increasing and fair competition ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 3 Creating Value with Leasing in The viability of NBFIs has been themselves. On the supply side, leasing can Emerging Markets challenged help a bank obtain higher returns through a (continued from page 2) Historically, stand-alone leasing relatively lower risk and diversified product companies as non-bank financial offering. It can also be less risky than IMPACT institutions (NBFIs) have been instrumental traditional lending. The focus on leasing is due to its strong for the promotion of SME access to finance Beyond the crisis, as banks adopt lessons impact in financial market development and in emerging markets. NBFIs are generally learned, they will explore new, relatively low in supporting underserved SMEs. Leases are the first players to enter nascent leasing risk products to offer. Key success factors for often the only form of term financing SMEs markets, particularly in the most frontier bank lease operations include product or start-ups can obtain in developing markets. However, they are more vulnerable knowledge, asset management expertise and markets as banks often do not serve them to adversity than banks because of their risk management. Successful lease well. limited access to and relatively higher cost of operations require a cultural shift from Supporting SMEs is an important factor funding. They often suffer from banking traditional banking to leasing, an asset for alleviating poverty. A major barrier to competition as banks start developing backed product. their growth is a lack of access to finance. An leasing products. First mover companies may initially have an advantage in pricing Bank sponsors often have stronger effective approach to financing SMEs is by and play a strong development role, but incentives to and are absorbing independent supporting leasing companies, banks and their advantage may be eroded quickly if leasing companies, either by buying a other financial institutions that serve these banks enter the market. substantial stake of or taking their market enterprises. share. Law-makers and regulators should IFC collected and analyzed data from its In the long run, the strongest NBFIs therefore encourage the ability of banks to SME focused financial institution ensure their sustainability by specializing in offer leasing products, directly or through investment clients for four years to better specific niches such as vendor partnerships, fully or partially owned subsidiaries for understand the composition of their operating leases or industry clusters. increased outreach and maximum portfolios. In FY08, 197 of MSME-focused Ultimately, the development of a strong development impact. financial institution clients in 73 countries leasing sector in a given country strongly were surveyed, 25 of whom were leasing benefits from the entry of commercial banks in the leasing business, as demonstrated in New and Innovative Business investment clients. Opportunities Exist Client institutions spanning 18 countries almost all countries in which leasing penetration is above 10 percent of fixed For leasing to realize its full impact, there extended 193,000 leases for a total disbursed is a need to find new and innovative ways to amount of US$5.2 billion to MSMEs globally capital formation. integrate leasing in key sectors and in 2007. initiatives, including the following: Banks will take the lion’s share of the • The average outstanding lease size was Sustainable Energy Finance leasing market US$3,180 for micro leases, $20,498 for In the context of the financial crisis, it has Leasing can support the global climate small leases and $207,146 for medium become clear that leasing companies that are change and sustainability agenda by leases. part of a solid bank with a stable source of financing sustainable energy equipment. • The average rate of non-performing loans retail deposit funding will have better Lack of financing for energy efficiency (NPLs) was 3 percent for micro, 2 percent chances of surviving the crisis. Stand-alone equipment has been identified as a major for small and 2 percent for medium leases. leasing companies dependent on whole-sale barrier to the development of the energy • IFC’s leasing clients MSME portfolio grew borrowings will inevitably suffer. Banks have efficiency industry. Leasing can help address by 19 percent in number and 47 percent access to competitive local currency funding this barrier and facilitate the financing of in volume.1 mainly through their deposits and are able equipment in energy efficiency, renewable to leverage on their branch network to reach energy and cleaner production. Leasing can NEW LESSONS FOR LEASE MARKET more SMEs. They have proven to be directly address the credit issues related to DEVELOPMENT generally strong sponsors with sustainable smaller-size investments and small Leasing in emerging markets has SME outreach in the long run. businesses. It can also represent a large witnessed unprecedented growth and source of funding for projects, and its Leasing can be offered by banks as significance over the past 35 years. However, flexibility offers opportunities for another product within the bank through a much needs to be done to increase lease structuring and developing appropriate wholly owned subsidiary or a joint venture penetration rates and to obtain maximum replicable models. Lease financing can be with technical and other partners that development impact. Recent market trends used in projects of all sizes, from large operate independently of the bank. By and changes in the global leasing landscape industrial projects such as cogeneration, increasing the range of products available as attest to this and call for a dynamic approach through mass market programs like compact well, banks not only create value for their to sustained lease market development in florescent to residential appliances. clients, SMEs in particular, but also for emerging markets. 1 CAGR: Compounded average growth rate based on 11 leasing clients that continuously reported from CY05 to CY07 ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 4 Creating Value with Leasing in for agri-processing and the food IFC leasing projects have indicated strong Emerging Markets manufacturing businesses, thus facilitating positive impact on private sector (continued from page 3) increased food production and distribution. development, particularly in the SME sector. Because of the difficulty in finding The impact of the financial crisis has Leasing can help banks, leasing suitable collateral, most banks and leasing influenced the market. However, leasing is companies and other financial institutions companies are averse to providing credit to and will continue to form an integral part of (FIs) better manage the risks associated with farmers. By strengthening the leasing sector, Access to Finance models, as it bridges the financing the sustainable energy industry. It farmers and agribusiness companies will SME finance gap and fuels economic can help increase the range of products and find it easier to access term equipment development. IFC will continuously explore thereby create value for both the financial financing. new and innovative ways of creating institution and its clients while increasing opportunities and value through leasing, market share. CONCLUSION particularly where the objective is to help Agriculture Equipment Financing Leasing has a strong development impact small businesses access the financing they and plays a critical role to bridge the SME need to grow and develop. Growth in agriculture is constrained by limited access to credit. Leasing can play a finance gap and promote financial sector Leasing is and continues to be an key role in addressing this access to finance development. The establishment and important financing mechanism in problem by providing term equipment commitment of over $21 million of emerging markets and OECD countries. The financing, thereby improving resources from IFC and its development development impact of IFC’s leasing work in mechanization, especially in rural areas. partners, coupled with over $1.4 billion in emerging markets has been strong. Leasing can also be used to finance a broad investment projects by IFC in emerging However, there is still a lot to do for range of equipment across the agribusiness markets has facilitated the growth of leasing governments, financial institutions and value chain, from simple tools to equipment in these markets. Independent evaluations of SMEs to realize the full potential of this important product. PAYMENT SYSTEMS NEWS however, the doubters may have proved institutional and policy issues. Part II Bharti Airtel Gets RBI Nod to Start wrong. Foreign Policy, August 27, 2010. reviews the market infrastructure for the Mobile Payment Services. Bharti Airtel has Touting Cost Savings, NACHA Launches handling of financial transactions in euro become the first mobile operator in India to Pilot for Deposited Checks. Deposited and key legislation. Part III explains the roles receive a license from the Reserve Bank of Check Truncation (DCT) is a method and policies of the Eurosystem in this field. India to start mobile payment services. The intended to cut processing costs for banks European Central Bank, edited by Tom Hindu Business Line, September 15, 2010. compared to the cost to clear check images. Kokkola, September 2010. EU unveils crackdown on derivatives. Digital Transactions, August 24, 2010. Special Issue: Central Bank Liquidity New proposed rules aim to bring more US Senate Passes Financial Reform. The Tools and Perspectives on Regulatory transparency to the often opaque world of US Senate finally passed a landmark reform Reform. The papers in this special volume of “over-the-counter” derivatives – financial regarding Wall Street on Thursday July 15, the Economic Policy Review all focus on the instruments traded off-exchange between ushering in a raft of restrictions on banks. theme of a 2009 conference on central bank two parties. Financial Times, September 15, Financial Times, July 15, 2010. liquidity tools organized by the Federal 2010. Reserve Bank of New York. Federal Reserve RECENT PUBLICATIONS Bank of New York, Economic Policy Review, ECB to Create 'Super Regulators' for The Payment System – Payments, Volume 16, Number 1, August 2010. Banks. The European Union took its first step towards the creation of three super Securities and Derivatives, and the Role of China ATM (Automatic Teller Machine) regulators that could eventually take direct the Eurosystem. A comprehensive 370-page Industry Report, 2009-2010. Based on responsibility for the oversight of individual insight into the handling of financial statistics from People’s Bank of China, member states’ financial systems. The transactions, the functioning of financial China Banking Association and China Telegraph, September 3, 2010. market infrastructure, and the role of the UnionPay, this report studies the status quo Eurosystem. Part I examines key concepts of ATM industry in China as well as the The M-Banking Revolution. As recently and processes in market infrastructure operation of leading ATM manufacturers as two years ago, mobile banking in the services of modern economies and around the world. Also, it analyzes the ATM developing world was an object of underlying economic, business, legal, procurement and placement of every bank skepticism among financial insiders. Now, ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 5 Payment Systems Counterparties (RCCP) to the CCPs clearing significant portion of OTC derivatives (continued from page 4) over-the-counter (OTC) derivatives transactions to CCPs would require large products (OTC derivatives CCPs). The increases in posted collateral, requiring large and predicts the investment opportunities World Bank actively participated to this banks to raise more capital. These costs and risks in ATM industry in the future. effort, through the Payment System suggest that most large banks will be Research and Markets, August 2010. (For Development Group. Bank for International reluctant to offload their positions to CCPs, purchase) Settlements, Committee on Payment and and the paper proposes an appropriate Liquidity Costs and Tiering in Large- Settlement Systems, CPSS Publications No 89, capital levy on remaining positions to Value Payment Systems. This paper May 2010. encourage the transition. IMF Working develops and simulates a model of the Report on the Brazilian Payment Cards Paper 10/99, by M. Singh, April 2010. emergence of networks in an interbank, industry. In July of 2006, the Central Bank of Mobile Banking and Payments. After RTGS payment system. A number of banks, Brazil, the Secretariat of Economic Law of abandoning initial rollouts a few years ago faced with random streams of payment the Ministry of Justice (SDE), and the following poor consumer take up, banks orders, choose whether to link directly to the Secretariat for Economic Monitoring of the worldwide are now re-entering the market. payment system, or to use a correspondent Ministry of Finance (SEAE) celebrated a This report assesses the role of the mobile bank. A calibration exercise on data from technical cooperation memorandum aimed phone as a banking device as well as a the UK CHAPS system suggests that the at carrying out joint studies relating to retail payment function. Case studies and model is able to generate realistic payment systems. This report, which is the examples include: Bank of America, Citi, predictions, i.e. a network topology similar first outcome of that effort, aims to identify Facebook, First National Bank, iTunes, to that observed in reality, driven solely by potential market failures stemming from Microsoft, Nokia, Paypal, Twitter, Visa, the underlying pattern of payments and the market’s organization and practices, so as to Wells Fargo, Wizzit and others. VRL structure of liquidity costs. Central Bank of become a reference for possible steps Reports, April 2010 (for purchase). England, Working Paper No.399, by M. towards social welfare improvements. Adams, M. Galbiati and S. Giansante, July Central Bank of Brazil, SDE, SEAE, May UPCOMING EVENTS 2010. 2010. Cards Latin America. Cards Latin Payments in Mobile 2010-2015. Payments and Securities Settlement America is the networking event of the year According to the GSMA there will be 1.7 Systems in Pakistan. The Payment Systems for the Latin cards and payments industry. It billion mobile phone users by the end of Development Group (PSDG) at the World brings together a targeted group of cards 2012 that do not possess a formal bank Bank has published the first “color” book of executives in one place at one time for account. Mobile subscriber penetration the “purple” series, produced in the context unparalleled access and networking worldwide will continue to increase with of the World Bank South Asia Payments and opportunities. Organized by Terrapinn. over 5.4 Billion handsets in circulation as of Securities Settlement Initiative (SAPI). The Coral Gables, FL. October 4-6, 2010. the end of 2015. The ubiquity of the mobile report, in collaboration with the State Bank Prepaid Cards LatAm 2010. An entire day phone will bring to the floor the potential of Pakistan (SBP), contains a systematic in- to discuss the avenues for growth of prepaid for m-banking and the wider potential of m- depth description of Pakistan’s payments cards in Latin America, from government payment services enabled by the mobile and securities settlement systems. benefits, to transportation, to retail. phone. This report examines the Additional reports for South Asia, including Organized by Terrapinn. Coral Gables, FL. opportunities and challenges for m- Bangladesh, Nepal and Bhutan will follow. October 6, 2010. payments to become readily accepted in the The World Bank, April 2010. Global Payments Week 2010. The developing and developed market. Collateral, Netting and Systemic Risk in biannual event gathering central banks and Visiongain, June 2010. (For purchase) the OTC Derivatives Market. To mitigate securities commissions from all over the Guidance on the application of the 2004 systemic risk, some regulators have world. Organized by the World Bank. CPSS-IOSCO Recommendations for Central advocated the greater use of Central Amsterdam, The Netherlands. October 19- Counterparties to OTC derivatives CCPs– Counterparties (CCPs) to clear over-the- 22, 2010. consultative report. Prepared by a working counter (OTC) derivatives trades. SIBOS 2010. Once a year, Sibos brings group jointly established in June 2009 by the Regulators should be cognizant that large together the financial industry to create Committee on Payment and Settlement banks active in the OTC derivatives market opportunities for individuals, organizations Systems (CPSS) and the Technical do not hold collateral against all the and the community as a whole. Facilitated Committee of the International positions in their trading book, and the and organized by SWIFT, this forum creates Organization of Securities Commissions paper proves an estimate of this under- the stimulus for learning, collaborating, (IOSCO), this report presents guidance on collateralization. Whatever collateral is held developing new business, defining future the application of the 2004 CPSS-IOSCO by banks is allowed to be re-used to others. strategies and taking collective action. Recommendations for Central Since CCPs would require all positions to Amsterdam, The Netherlands. October 25- have collateral against them, off-loading a 29, 2010. ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 6 Payment Systems prepaid role in the evolution, update on SPEED. “Settlements, Payments, E- (continued from page 5) regulatory and legal developments, and money & E-trading Development” is a new share best practices on mobile payment quarterly journal from Central Banking Mobile Money Transfer Global. Bringing technologies. Organized by IQPC. Denver, Publications which focuses on policy together leading players from across the CO. June 28-30, 2010. developments affecting financial entire MMT ecosystem, MMT Global will infrastructures at the national and Payments Panorama 2010. The theme for feature 40-plus top executive presentations international levels. the Payments Panorama 2010 was and global case studies. MMT Global will see “Leadership, Change and Vision in the The Lydian Payments Journal. Launched over 400 people come together to network Payments Industry”. The program featured in 2009, and published on Pymnts.com, an and discuss the latest industry developments sessions on mobile payments, international online media channel featuring news and and explore the opportunities and challenges standards, crime and payment, and analysis on “what’s next” in the payments facing the industry. Dubai, UAE. October innovation and evolution in the retail sector, this journal is specifically targeted to 25-26, 2010. payments sector. Vancouver, Canada. June the payments professionals. Expanding the Horizon of Payment 16-18, 2010. Systems. Global Payment System LINKS Prepaid 2010. By 2015 MasterCard and Conference organized by the World Bank World Bank Payment Systems PSE Consulting project the value of prepaid Payment Systems Development Group Development Group. For more than 12 spending to reach EUR131bn in Europe; (PSDG) in the context of the IFC-World years the World Bank has been paying winning prepaid businesses will identify and Bank Financial Infrastructure Week, Rio de increasing attention to payment system dominate a market niche. Prepaid 2010 Janeiro, Brazil, March 2011. development, and has provided various provided round tables and panels around an International Payments Summit (IPS) agenda genuinely driven by audience forms of assistance to over 100 countries. 2011. IPS - The World's Leading Payments questions, with over 100 global prepaid Bank for International Settlements. The Conference. Over 400-plus attendees and visionaries. London, UK. June 14-16, 2010. Bank for International Settlements (BIS) is 110-plus international industry speakers. an international organization which fosters 5th Annual Underbanked Financial Organized by ICBI. London, UK. March 21- international monetary and financial Services Forum. This year's edition focused 24, 2011. cooperation and serves as a bank for central on credit, payments and deposits. Miami, FL. June 9-11, 2010. banks. PAST EVENTS infoDev Annual Symposium 2010: Clean, Western Hemisphere Payment & AFI Global Policy Forum. The 2010 event Green and Mobile. Making Technology Securities Settlement Forum. The Western will be a unique opportunity to review and Work for the Poor. The Mobile Phone Hemisphere Payments and Securities assess progress on financial inclusion Applications Panel discussion focused on Clearance and Settlement Initiative (WHI) policymaking, take stock of key activities, how mobile services can effectively serve the has become a regional forum to discuss and share lessons learned, identify gaps and poorest at the base of the pyramid. relevant issues in the field of payments and challenges to address bottlenecks and Washington, DC. June 9, 2010. securities clearance and settlement. further advance financial inclusion policy in developing countries. Co-hosted by AFI and CIS-PI. Commonwealth of Independent NEWSLETTERS AND JOURNALS States Payments and Securities Settlement Bank Indonesia. Bali, Indonesia. September 27-29, 2010. Dialogue. The Voice of the SWIFT Initiative aims to assess payments and Community. securities settlement systems in the Effective Oversight of Payments, Clearing International Banking Systems. IBS Countries belonging to the CIS with a view and Settlement Systems. This 4-day Journal provides news, research and analysis to improve their safety, efficiency and programme aimed to equip payment covering banking operations and systems integrity. systems experts in central banks to meet the challenge to formulate an oversight internationally. In addition to the monthly SWIFT. The Society for Worldwide framework for ensuring the safety and IBS Journal and CFS Journal, reports, case Interbank Financial Telecommunication reliability of the payments, clearing and studies and directories are also available provides the proprietary communications settlement systems, along with addressing online. platform for the exchange of financial the issues of competition, accessibility, Journal of Payments Strategy & Systems information to over 8,300 customers in efficiency and the prevention of fraud. publishes peer-reviewed articles and case more than 208 countries. Sponsored by Central Banking. Cambridge, studies analyzing best practice, emerging CGAP. The Consultative Group for UK. August 31 - September 3, 2010. issues and new thinking in how to develop a Assisting the Poor aims to help build Prepaid Cards & Mobile Payments 2010 profitable, customer-focused payments efficient and equitable local financial Conference. This event examined innovative strategy. Published by Henry Stewart markets that serve all poor people with payment technologies and forecast the Publications. convenient and affordable financial services. ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 7 Payment Systems Migration and Development Brief 12: RECENT PUBLICATIONS (continued from page 6) Remittance Flows to Developing Countries Ten Years of Innovation in Remittances: Remained Resilient in 2009, Expected to Eurogiro Network. Through its Lessons Learned and Models for the Future. Independent Review of the Multilateral Recover During 2010-11. Officially recorded community of postal organizations, banks Investment Fund Remittance Portfolio. This remittance flows to developing countries and payment service providers, Eurogiro report is a review of the Multilateral reached US$316 billion in 2009, down 6 provides high quality solutions in the low- Investment Fund’s remittance program percent from US$336 billion in 2008. With value payment market. improved prospects for the global economy, since it’s start in 2000, when it began. The Payment News. This website presents the remittance flows to developing countries are review focuses primarily on the portfolio of latest news on the payment system industry. expected to increase by 6.2 percent in 2010 remittance projects undertaken by the MIF from 2001 to 2009, and secondarily on the and 7.1 percent in 2011, a faster pace of REMITTANCES MIF’s research and dissemination activities recovery in 2010 than our earlier forecasts. during that same time period. Inter- The World Bank, by D. Ratha, S. Mohapatra NEWS and A. Silwal, April 2010. American Development Bank’s Multilateral Bangladeshi Remittances Hit Record Investment Fund, by Joan Hall (Ayani NL Migrant Remittance Flows: Findings High. Bangladeshis working overseas sent a Consultants), May 2010. from a Global Survey of Central Banks. record $938 million home to their families Drawing on the findings from responses to a A Review of International Migration in August, confounding fears that the global 2008-09 survey from 114 central banks Policies. As flows of migrants from economic crisis would trigger a flood of worldwide (33 of which are in Africa), this developing countries to developed countries returning migrant workers and a plunge in paper aims to better understand how central grow over time, migration has become an crucial remittances. Financial Times, banks and other national institutions important issue that warrant good September 7, 2010. regulate and collect data and other management. This paper reviews migration Sri Lanka Remittances May Rise to information on cross-border remittance policies that exist in various countries and, Record $3.8 Billion After Civil War Ends. flows. The World Bank, by J. Irving, S. especially those that could be applicable to Remittances sent home by Sri Lankan North and West African countries. The Mohapatra, and D. Ratha, March 2010 (for nationals overseas may rise to a record $3.8 remittance section investigates existing purchase). billion in 2010, a central bank official said, mechanisms which could be used to increase Remittances to Latin America and the adding that policy makers will ensure remittances and promote their investment, Caribbean in 2009. The Impact of the Global stability of the currency as the flows reduce transfer cost, and encourage formal Financial Crisis. Remittance flows to increase. Bloomberg, September 7, 2010. channel of remittances. Securitization and countries in Latin America and the Deal of the Day: Money-Transfer regulation of remittances are also Caribbean (LAC) in 2009 were not immune Companies Evolve, as Remittances mentioned. Programme for the Study of to the impact of the global financial crisis. Rebound. The money-transfer industry is Global Migration, Graduate Institute of The economic slowdown has resulted in a fragmented, and needs to adapt to new International and Development Studies, 15% decline in remittance receipts competition, regulations and technologies. Geneva, by N. Luckanachai and M. Rieger, compared to 2008. However, analysis of data Like other sectors, it is using the aftermath 2010. from the last quarter of 2009 point to a of the Great Recession to consolidate. possible stabilization of flows in 2010. Inter- An Analysis of Trends in the Average Financial Times, August 25, 2010. American Development Bank’s Multilateral Total Cost of Migrant Remittance Services. Investment Fund. March 2010. Philippine Remittances Rise, At a Cost. The World Bank Group published the Trade Union Congress of the Philippines fourth update of the Remittance Prices UPCOMING EVENTS secretary general Ernesto Herrera describes Worldwide databases which tracks what the rates the banks and other money transfer migrant workers pay to send money to their IMTC MIAMI 2010. This is fifth firms slap on the remittances as "oppressive family at home. The global average total cost International Money Transmitters and burdensome". Asia Times, August 19, for sending US$200 is down to 8.72 percent Conference organized by the National 2010. but that average costs for some country Money Transmitters Association (the corridors are still as high as 22 percent, with NMTA) and Mohr World Consulting Congress Boosts Remittance some providers offering services at a cost (MWC). Miami, FL. October 16-19, 2010, Transparency in Reform Bill. The financial reform includes long-needed remittance that exceeds 40 percent. This Policy Note Money Transfers London Summit transparency standards that will help ensure has been produced based on the latest data (MTLS). Organized by IAMTN. London, the safe and affordable transfer of money collection in the Remittance Prices UK. November 15-16, 2010. from immigrant workers to their families Worldwide database and will be updated Money Transfers Dubai (MTD). abroad. RemittancesGateway.org, July 17 periodically as new data becomes available. Organized by IAMTN. Dubai, UAE. April 2010. The World Bank Group, April 2010. 19, 2011. ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 8 Remittances (continued from page 7) Money Transfers Moscow (MTM). NEWSLETTERS France: www.envoidargent.org (French) Organized by IAMTN. Moscow, Russia. Migrant Remittances Newsletter. Germany: www.geldtransfair.de June 21, 2011. Sponsored by the U.K. Department for (German) Money Transfer & Migrant Remittances. International Development (DFID) and the Mexico: Organized by ICBI. TBC. June 2011. U.S. Agency for International Development www.profeco.gob.mx/envio/envio.asp (USAID), and produced by The QED (Spanish) PAST EVENTS Group. Netherlands: www.geldnaarhuis.nl Money Transfers Singapore 2010. Migration for Development. Facilitated (Dutch) Organized by IAMTN. The one-day by the EC-UN Joint Migration and Norway: www.sendepenger.no conference was the second IAMTN Development Initiative (JMDI). conference held on remittances in UK: www.sendmoneyhome.org and Money Transfer Newsletter. Maintained Singapore. Delegates from money transfer www.moneymove.org by the International Association of Money companies, banks, mobile and card payment MIF. The Multilateral Investment Fund Transfer Networks (IAMTN). operators and technology providers as well (MIF) of The Inter-American Development as regulators throughout Asia Pacific took LINKS Bank (IADB) seeks to promote inclusive part in a packed one day event that will growth in Latin America through private Remittance Prices Worldwide. The addressed the key issues in the remittance sector development. The MIF recognizes the World Bank Group Database provides data world, in the largest receiving region in the impact of remittances on development and on the cost of sending and receiving small world. Singapore. September 21, 2010. works for making money transfers cheaper amounts of money from one country to Money Transfer & Migrant Remittances. and safer. another (Available in English, Arabic, The third annual event organized by ICBI. Chinese, French, Italian, Portuguese, DFID. The Department for International Among the topics of this year’s conference: Russian and Spanish). New corridors and Development (DFID) is an UK Government the latest news on the World Bank 5x5 features available (March 2010). Agency for international cooperation. DFID objective; how the industry has responded to plays an important role in the field of Global Remittances Working Group. The the financial crisis; and mobile money – who remittances. GRWG comprises of representatives from will be the winners and losers? Barcelona, Inter-American Dialogue. The the World Bank Group and interested Spain. June 23-24, 2010. Remittances and Development Program of national authorities, and is chaired by the Money Transfers Moscow 2010. World Bank-IFC Vice President for Inter-American Dialogue seeks to encourage Organized by IAMTN. Moscow, Russian Financial and Private Sector Development. remittances as a tool for development Federation. June 7, 2010. Launched in January 2010, this website throughout Latin America and the Remesamericas 2010: Remittances for the informs about the structure and the Caribbean. Future. Remesamericas 2010 brought activities of the GRWG. Mondato. Mondato Limited is an Irish- together MIF project partners and other World Bank Certified Regional and based, international value transfer portal market actors to disseminate best practices, National Databases that offers a consumer search function to innovative solutions, and lessons learned enable customers to find options for money These databases cover regional and over the 10 years that the MIF has been transfers that best suit their needs. national remittance markets and fully raising awareness about and financing RemittanceGateway.org. This website is comply with the World Bank official projects that use remittances as a meant for those interested in the field of requirements for Remittance Prices development tool. Organized by the Inter- migration and development. It is specifically Comparison Databases. American Development Bank’s Multilateral geared towards migrant remittances and Investment Fund. Mexico City, Mexico. May Italy: www.mandasoldiacasa.it (Italian) provides news, insights and contributions 6-7, 2010. Australia and New Zealand: from leading international experts. Segunda Convención de la Asociación www.sendmoneypacific.org Iberomericana de Remesadoras. This is Other National Remittance Prices second forum organized by Asociación Databases Iberomericana de Remesadoras for money These databases cover regional and transfer operators in the world. Madrid, national remittance markets and are not Spain. April 8-10, 2010 necessarily consistent with the methodology of the World Bank Group database. ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 9 NONBANK FINANCIAL RECENT PUBLICATIONS cities. Doing Business investigates the ways INSTITUTIONS (Leasing, Housing Microfinance Default Rates in Ghana: in which government regulations enhance or Finance, Insurance) Evidence from Individual Liability Credit restrain business activity. The cities covered Contacts. This paper presents evidence on in Doing Business in Pakistan NEWS the factors that affect default probabilities in 2010 were selected jointly with Pakistan’s IFC Looks at Affordable Housing individual-liability credit contracts. The data Ministry of Finance. The International Bank Projects in India. IFC is in talks with several is drawn from a for-profit microfinance for Reconstruction and Development / The real estate developers and housing finance lender in Ghana, and the sample consists of World Bank. 2010. companies to create large, affordable nearly 1,000 randomly selected loans Insurance in Developing Countries: housing projects in India with the hope of approved between 2002 and 2007, three Exploring Opportunities in Microinsurance. one of the projects to be developed within quarters of which were repaid. As default is The potential market for insurance in the next six months. Affordable housing has relatively rare in microfinance, borrowers developing countries is estimated to be been tackled in other countries such as who failed to repay their loans were over- between 1.5 and 3bn policies. There is a Mexico where 15,000 to 20,000 homes are sampled. Impact of demographic, business significant demand for a range of insurance being built costing $7,000 to 15,000. In FY09 and loan characteristics are included on products including health and life insurance, and GY10, IFC’s highest exposure was in default odds. It is found that repayment is agricultural and property insurance and India and will continue to invest affected mainly by the number of catastrophe cover. Microinsurance is approximately $1 billion per year for the dependents in the household, years in effective in markets with little experience of next two or three years. The Hindu Business business, use of proceeds, loan status and insurance – but it needs to be efficient, Line, August 23, 2010. frequency of loan monitoring. By Gerald cheap and simple. Llyods. 2010. High Cost of Healthcare Pushes Insurers Pollio and James Obuobie. Microfinance Information Exchange, Inc. September 2010. UPCOMING EVENTS to Launch Cheaper Covers. The high cost of health care service in Africa is setting the Financial Access 2010: The State of Microfinance India Summit 2010. stage for the launch of new innovative Financial Inclusion Through the Crisis. Organized by ACCESS Development, the products targeting the low-end market, Financial Access 2010 is the second annual Microfinance India Summit 2010 will host including Changamka, a micro-health cover survey of financial regulators in more than policy makers, practitioners, promoters, launched by Changamka Micro-Health. The 140 countries by the Consultative Group to academics, researchers and thought leaders product allows members to receive Assist the Poor and The World Bank Group. on various panels, and about 1,000 delegates treatment at designated hospitals for a low The survey found that the number of bank from around the world will participate in the cost. Additional microinsurance products accounts around the world was growing summit. The theme is “Mission of like Bima Ya Jamii encourages savings while even as the volume of loan and deposit Microfinance- Need to Reflect and providing risk cover, and Afya Milele which accounts dropped. Sixty-five deposit Reaffirm”, and the sessions will focus on covers low-income families for in and out- accounts were added per 1,000 adults in current trends and issues relating to patient care as well as maternity costs, 2009, representing 4.3 percent average sustainability, transparency, social doctors fees, daily hospital charges and growth in the number of deposit accounts. performance, commercialization of the prescriptions. Business Daily, September 13, The impact of the financial crisis could be sector and client protection, among others. 2010. more clearly seen in the use of credit Sub-events will include Microfinance India services, with the number of loans per 1,000 Awards which recognize the contribution of Foreign Policy: The Mobile Banking adults broadly unchanged between 2008 and individuals and institutions which have Revolution. Mobile banking, or “m- 2009. Consultative Group to Assist the played transformational roles in helping the banking,” in the developing world caused a large amount of skepticism from financial Poor/The World Bank Group. September sector grow in India, sponsored thematic insiders. Three years ago M-Pesa was 2010. roundtables which will present recent launched as a mobile-money transfer service Doing Business in Pakistan 2010. Doing research findings, innovative and innovate by Sararicom, the Kenyan subsidiary of Business in Pakistan 2010 is the first ideas with select audiences and the Vodafone. In May, with about 10 million country-specific subnational report of the Knowledge Fair which will showcase various customers in Kenya, Sararicom partnered Doing Business series in Pakistan. The report products, services and publications on offer with Equity Bank and began M-Kesho, an builds on the regional Doing Business in by diverse stakeholders in the sector. New interest-bearing savings account so that South Asia 2005-7 series, which created Delhi, India. November 15-16, 2010. users are able to access mobile quantitative indicators on business 6th International Microinsurance microinsurance and microloan products. regulations for six Pakistani cities. Doing Conference. Call for proposals. Hosted by NPR, August 30, 2010. Business in Pakistan 2010 documents Munich Re Foundation and the progress in the previously measured cities Microinsurance Network supported by and extends the analysis to a total of 13 GTZ/BMZ, the Department of Finance of ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 10 NonBank Financial Institutions 4th Global Conference on Housing Ventures. A bi-annual production, (continued from page 9) Finance in Emerging Markets. World Bank Ventures offers reflections on ACCION’s the Philippines and Georgia State Group’s 4th Global Conference, Global work, regional news highlights and first- University’s Center for the Economic Housing Finance After the Crisis, Drawing hand accounts from staff in the Analysis of Risk this event will have 500 the Lessons, Taking Stock, and Building the field and individual stories of the working participants and experts from around the Future. Agenda and presentations now poor succeeding with the help of world to exchange experiences and discuss online. Washington, DC, May 26-27, 2010. microfinance. the challenges of microinsurance. The conference will have plenary panel NEWSLETTERS LINKS discussions on key topics addressing an Microinsurance Trilogy. This newsletter PlaNet Finance. This site, available in interdisciplinary audience. Parallel working is published three times a year by the English and French, is an international NGO group sessions will deal in depth with Microinsurance Network and is available in that aims to alleviate poverty worldwide different subtopics. Interactive sessions of English, Spanish and French. through the development of microfinance. approximately 90 minutes are a key part of Microfinance Africa. A newsletter issued Microfinance Information Exchange. the conference, facilitating dialogue in small by Microfinance Africa which includes Also known as The Mix, Microfinance groups on emerging issues. Manila, recent updates in the microfinance sector in Information Exchange delivers data services, Philippines. November 9-11, 2010. Africa. analysis, research and business information The Microinsurance Note Series is on the institutions that provide financial PAST EVENTS written for USAID by Michael McCord of services to the world’s poor. Frankfurt School of Finance & Management Summer Academy, Housing The Microinsurance Centre. The The Microinsurance Centre. The Finance Course. - In cooperation with Microinsurance Note Series provides an Microinsurance Centre is focused on a Housing Development Finance Corporation, accessible, brief introduction to ten major partnership model of microinsurance India this course will provide topics in microinsurance. provision. This site is intended to provide comprehensive insight into all core topics of InSight. As short, frequent, one-topic practical tools to assist in the success of these housing finance. Picking up on the newest bulletins, InSight is intended to share the relationships between regulated insurers, developments and best practices in the results of ACCION International's work and MFOs and banks. market, it will focus on conveying practical with the microfinance community as quickly LeapFrog Investments. LeapFrog is the knowledge and tools for successfully and efficiently as possible. first microinsurance fund and targets to managing mortgage lending operations and Microfinance Focus. Microfinance Focus strong returns for investors while reaching developing approaches and products that is a global magazine on microfinance and 25 million vulnerable people in Africa and meet the rising demand for housing finance. sustainable development. It publishes news Asia with life-changing financial services. Frankfurt, Germany. July 25-30, 2010. stories, articles and editorials written by IFC invested $20 million in LeapFrog The Euromoney Egypt Housing & Real experts who are practicing in the field. Financial Inclusion Fund. Estate Finance Conference: Financing Micro Insurance Voices. This newsletter Microinsurance Academy. The Egypt’s Housing Needs Investing in Real highlights the activities of the Micro Microinsurance Academy, or MIA, is a Estate Development. Cairo, Egypt. June 15, Insurance Academy, news and events, new project of Sarvajan Unnati Bodhini 2010. partnerships, and innovative research, and Charitable Trust. MIA is a not-for-profit International Housing Finance Program. among others, features perspectives from organization fully dedicated to providing This annual housing finance two-week microinsurance experts. structured technical assistance in program from The Wharton School of the microinsurance domain-knowledge to MicroInsurance Times. A newsletter University of Pennsylvania provides the best organizations that focus on low-income (currently in pilot phase) from MicroCapital available in-depth review of international communities. covering microinsurance briefs, news, best practices in housing finance. It presents interviews and events. LIBISNet is an international insurance a variety of tools and helps one to library whose online search feature contains Prosper. Prosper is the development understand how to use them. The program microinsurance publications from activities supplement from ICMIF and is useful for private sector bankers and for approximately 30 different libraries in includes articles relating to the area of public sector policy makers. Participants Europe. development, including microinsurance and come from private housing finance CGAP is an independent policy and Islamic microinsurance. institutions, government finance agencies, research center dedicated to advancing Catalyst Newsletter. Published by academia and international development financial access for the world's poor. It is Freedom from Hunger, it aims to contribute agencies from both emerging and advanced supported by over 30 development agencies to greater awareness of and enthusiasm for economies. Philadelphia, Pennsylvania. June and private foundations who share a the microfinance and health protection 7-19, 2010. common mission is to alleviate poverty. initiative. ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 11 NonBank Financial Institutions Doing Business. The Doing Business Accion is a private, non-profit (continued from page 10) project is a series of reports supported by organization with the mission of giving The World Bank which provides objective people the financial tools they need to work Housed at the World Bank, CGAP provides measures of business regulations and their their way out of poverty. By providing market intelligence, promotes standards, enforcement across 183 economies and “micro” loans, business training and other develops innovative solutions and offers selected cities at the subnational and financial services to poor men and women advisory services to governments, regional level. who start their own businesses, ACCION microfinance providers, donors, and helps people work their way up the Munich Re Foundation concerns itself investors. economic ladder with dignity and pride. with the great challenges facing the world Opportunity International. Opportunity today including such topic as poverty and Microinsurance Innovation Facility. International provides microfinance loans, microinsurance, population growth, Housed at the International Labour savings, insurance and training to over two globalization, diminishing resources, Organization’s Social Finance Programme, million people working their way out of environmental pollution and climate the Microinsurance Innovation Facility poverty in the developing world. change. seeks to increase the availability of quality of insurance for the developing world’s low income families to help them guard against risk and overcome poverty. CREDIT REPORTING NEWS credit means more production, a better better quality. This preference is particularly economy, and a possibility for each and strong for banks’ branch decisions. India: Global Credit Bureau Experian every one to progress" said Oscar Madeddu, Furthermore, banks prefer subsidiary entry Opens Doors in India. On August 12 the Specialist with IFC’s Global Credit Bureau only in countries where private credit international credit information firm Program. Inside Business on City 7, June 29, bureaus exist with better credit information Experian opened doors in India as the first 2010. quality. Overall, results indicate that banks CICRA-licensed credit bureau in India, are attracted to countries where the credit making the country its 16th destination. RECENT PUBLICATIONS reporting system helps reduce banks’ Experian had first approached RBI for Bank Competition, Credit Information information costs. Journal of Banking & clearances in February. As per banking Sharing and Banking Efficiency. The study Finance, June 2010. regulators, Axis Bank, Punjab National Bank, Indian Bank, Union Bank, Federal examines the effects of bank competition Lending and Delinquency Risk. A study Bank, Sundaram Finance together hold a 51 and information sharing via credit agencies by credit bureau TransUnion suggests that percent stake in the company. CNBC News, on banking efficiency. Using a sample of financial institutions could experience August 11, 2010. about 2,500 banks in more than 70 significant drops in the rate of delinquent countries, the study finds that bank accounts by establishing multiple lending Vietnam’s First Credit Bureau (PCB) concentration reduces bank operating relationships with individual customers. Launches. The bureau is expected to supply efficiency. Credit information sharing, on TransUnion studied lending information highly credible credit information about the other hand, increases bank efficiency from six "super-regional" financial individuals and organizations and it will also and further attenuates the negative effect of institutions-three banks and three credit help small-and-medium-sized enterprises bank concentration on bank efficiency. City unions for the Decembers of 2007, 2008 and (SMEs) and the private sector access credit University of Hong Kong and Lingnan 2009. Some 19 million consumers were quickly and easily. Vietnam, July 20, 2010. University of Hong Kong, June 2010. included in each review, and more than 400 The first workshop on Financial million credit relationships were evaluated What Drives Foreign Expansion of the Infrastructure launched by the World Bank during each period. The study examined the Top 100 Multinational Banks? The Role of in partnership with the Arab Monetary Fund correlation between the number of the Credit Reporting System. The study and the Union of Arab Banks was held in consumer accounts 30 days or more explores how information costs, proxied by Abu Dhabi on June 29, 2010. The major delinquent and the number of accounts the characteristics of credit reporting systems, session of the training focused on financial borrower held with the lender. Other affect the foreign expansion of the top 100 infrastructure, credit rights, guarantee account types included mortgages, auto multinational banks. The study finds that systems and payment and settlement loans, home equity lines of credit and other banks prefer to expand operations in systems."The economy does not move unless lending services. TransUnion, June 24, 2010. countries where private credit bureaus exist you have credit, and in most cases access to or where the credit reporting system is of ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 12 Credit Reporting practices, adding that the introduction of LINKS (continued from page 12) value-added services will benefit both the Financial Infrastructure – Credit bureaus and their users and improve access Bureaus. This website contains the latest PAST EVENTS to finance for the broader community. news on the sector, publications and more World Consumer Credit Reporting Daily News Sri Lanka, July 30, 2010. related to credit bureaus and IFC’s work Conference 2010. The WCCRC 2010 is a around the world. two day event where senior representatives NEWSLETTERS Doing Business provides objective from Credit Bureaus around the globe as ACAFI Newsletter. Quarterly newsletter measures of business regulations and their well as industry related companies from published by IFC’s Advisory Services in the enforcement across 178 countries and various credit cultures will attend to discuss Europe and Central Asia region focusing on selected cities at the subnational and contemporary issues. Berlin, September 26 - credit bureau project progress and regional level. 28, 2010. developments in Azerbaijan, the Kyrgyz Republic, Tajikistan and Uzbekistan. IFC Azerbaijan-Central Asia Financial Credit Information Bureau (CRIB – Sri Volume II, May – August 2010. Markets Infrastructure Advisory Services Lanka) “Credit Reports and Beyond” Project provides updated information on Symposium. The Credit Information Bureau Caribbean Panorama. Quarterly IFC’s regional financial market program for (CRIB) recently held a symposium on newsletter published by IFC Advisory Central Asia, including a component on 'Credit Reports and Beyond' for lenders in Services in Latin America & the Caribbean credit reporting. Colombo, Sri Lanka. IFC Principal Financial in collaboration with the Canadian Specialist Tony Lythgoe and other industry- International Development Agency (CIDA). Western Hemisphere Credit Reporting reputed speakers enlightened CRIB Volume 1, July, 2009. Volume 2, October, Initiative. World Bank-led initiative to stakeholders about how credit bureaus can 2009. Volume 3, January 2010; and Volume describe and assess credit and loan reporting help to develop lending operations and 4, April 2010; Volume 5, July 2010. systems in the Latin America and Caribbean analytical models for risk management region, and develop improvement strategies ViewPoints. Bi-monthly publication by and action plans using a standard Fair Isaac Corporation. methodology. COLLATERAL REGISTRIES / SECURED LENDING NEWS reform will include enactment of a law on State Matthew Dunlap hosted a delegation secured transactions and development of a of banking executives from Palestine, Jordan IBA invites Bids for e-Registry Project. movable collateral registry to publicize and Lebanon who are participating in the The Indian Banks' Association (IBA) has lenders' security interests in movable assets World Bank Study Tour. The delegation met decided to fast-track the project to set up a and to establish their priority in the assets. with Department officials, representatives central electronic registry. With a view to The Jordan Times. August 27, 2010 from InforME, the state’s e-Government getting the registry up and running in six Banks Now Accept Movable Assets as partner, and local banking officials to months, the association has invited bids Collateral in Ghana. Ghana’s Collateral discuss establishing a secured transactions from qualified vendors to design, develop Registry indicates a lot more banks are registry, similar to the Uniform Commercial and implement the central registry system. accepting movable assets as guarantees for Code (UCC) online filing system The registry will have a data collection loans. All banks have access to the new administered by the Department of the system where banks and housing finance registry which will help improve credit flow Secretary of State. Maine, Secretary of State. companies can report details of all home to businesses and drive down interest rates. August 2, 2010. loans transactions. The data dissemination system will help lenders and the general The registry was established in February this year and has so far recorded a little over five RECENT PUBLICATIONS public access/search data on the status of a property. Business Line. September 3, 2010 thousand assets. More than 2,000 requests How Law Affects Lending. This paper have been made by the banks with vehicles investigates the effect of legal change on the Jordan, IFC Sign Accord to Set Up First and goods in transit amongst the most lending behavior of banks in twelve Movable Asset Registry. Jordan and the popular searches. Joy Business. August 11, transition economies. First, banks increase International Finance Corporation (IFC), a 2010. the supply of credit subsequent to legal member of the World Bank Group, change. Second, changes in collateral law embarked on establishing the first movable World Bank Group Study Tour from matter more for increases in bank lending asset registry to enable lenders to file notice Palestine, Jordan, and Lebanon meets with than do changes in bankruptcy law. This is related to their proprietary rights. The Maine Secretary of State. Maine Secretary of attributed to the different functions of ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 13 Collateral Registries / Secured Austin, Texas, with several STS meetings UNCITRAL. Working Group VI. United Lending (continued from page 12) held during the conference. Austin, TX May Nations Commission on International Trade 23-27, 2010. Law. This working group covers Secured collateral and bankruptcy law. While the UNCITRAL - Third International Transactions. former enhances the likelihood that Colloquium on Secured Transactions. The Uncitral Colloquia. Uncitral Colloquia on individual creditors can realize their claims colloquium took place from 1-3, March 2010 Secured Transactions listed under security. against a debtor, the latter ensures an at the Vienna International Centre. Same as orderly process for resolving multiple, and EBRD – Secured Transactions. EBRD’s the first Colloquium, which took place on 20 often conflicting, claims after a debtor has Secured Transactions Project, includes data, to March 22-23, 2002, and the second become insolvent. By Rainer Haselmann, publications, core legal text, projects & Colloquium, which took place on January Katharina Pistor, Vikrant Vig. The Review of developments. 18-19, 2007, the Third Colloquium Financial Studies / v 23 n 2 2010. 2010. discussed possible future work in the area of Corporate Registers Forum. The Moving International Secured secured transactions and, in particular, Corporate Registers Forum (CRF) is an Transactions Law Forward. Spiros Bazinas, further work after the completion of the international not for profit organization for senior legal officer, UN Commission on supplement to the UNCITRAL Legislative administrators of corporate and securities International Trade Law, discusses the Guide on Secured Transactions (“the registers. importance of UNCITRAL and provides Guide”) dealing with security rights in International Association of Commercial readers with an update on the Commission's intellectual property. Vienna, Austria, Administrators (IACA). Professional work to promote effective secured March 1-3, 2010. association for government administrators transactions law around the world. IADB - Financial inclusion: The of business organization and secured By Spiros Bazinas. The Secured Lender. Democratization of Credit. Experts from the transaction record systems. July, 2010. public and private sectors discussed secured LLI, Legal Information Institute. The Secured Transactions Toolkit. This transactions and how they can be used to Legal Dictionary and Legal Encyclopedia Toolkit provides technical advice and expand financial services for the poor. that provides materials and resources on guidance on the implementation of secured Washington, DC, February 26, 2010. Secured Transactions Topic. transactions law and institutional reforms in China Law and Governance Review. emerging market countries. It guides the LINKS China Law and Governance Review is an reader through the various stages of the IFC/World Bank – Secured Lending. The electronic publication of China Law and project cycle (identification, diagnostic, joint FIAS/IFC advisory services in secured Development Consultants Co., Limited solution design, implementation and lending supporting the development of a (“CLD”), a Hong Kong firm founded in monitoring and evaluation) involved in the well-functioning secured lending framework 2000 to support non-profit development introduction of secured transactions through a delivery model that focuses on work in China. In addition to designing and reforms. The recommendations presented harmonizing laws, building electronic carrying out projects with Chinese partners, in the Toolkit are based on IFC’s experience registries, streamlining registration CLD advises foreign donors and other in the secured transactions area, the processes and eliminating unnecessary organizations working in China. CLD contributions of a number of experts in this paperwork. specializes in legal system development, field, existing literature, reform experience World Bank Global Insolvency Law governance reform, women’s issues, in a number of emerging market countries Database (GILD). World Bank developed educational reform and the emerging NGO and the existing best practices in Principles and Guidelines for Effective sector in China. jurisdictions with advanced secured Insolvency and Creditor Rights Systems Collateral Security Reforms. ADB, transactions systems. World Bank Group. (Principles). The Principles represent an Roundtable Meeting of Chief Justices and January 2010. international consensus on best practices in Ministers of Justice, Documents and insolvency and creditor rights (ICR) and Background Materials. UPCOMING EVENTS constitute the standard for benchmarking UNCITRAL Meetings for Working the effectiveness of ICR systems. Group VI. Vienna, Austria, November 8-12, Additionally on the site find the Reports on 2010; New York, April 11-15, 2010; Vienna, the Observance of Standards and Codes Austria, December 12-16, 2011. (ROSCs) which provide a template, based on the World Bank’s Principles, to help PAST EVENTS countries evaluate their own insolvency and The 33rd IACA Annual Conference: debtor-creditor relations systems. Taking Your Administration to a Great State was held at the Hyatt Regency Austin in ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 14 INCLUSIVE FINANCIAL SYSTEMS NEWS can enjoy the benefits of a Visa product The Ready Reckoner on Microfinance. Reserve Bank of India Reaches Out. and experience a better alternative to a Targeting the fraternity of researchers, Reporting on the efforts of initiative by cash-and-carry lifestyle. The campaign evaluators and academics, the Reckoner the Reserve Bank of India, in association builds upon Visa’s long-standing lists various courses, useful websites, with state-run and private banks which commitment to extending financial details of the experts working in the field, seeks more help of the country, and inclusion to more consumers, while at the successful and innovative models of particularly the poor, get access to credit same time driving opportunities for Visa, microfinance and articles/papers related and other financial services. Wall Street partners and clients. Global Banking to microfinance sub-sectors like savings, Journal, August 11, 2010. News, July 16, 2010. credit, transfer of money, etc. It offers a data base of as large as 300 key Nokia and India’s Yes Bank Tie Up for RECENT PUBLICATIONS organizations in the sector. UNDP India. Rural Mobile Banking. Nokia has tied up Financial Access 2010: The State of July 2010. with YES Bank to launch mobile payment Financial Inclusion Through The Crisis. Microfinance Games. This paper solutions in rural areas and push financial Financial Access 2010 extends to 142 documents the findings from research inclusion in the rural and semi-urban countries, and builds on last year’s data to carried out in an experimental economics cities. As per the tie-up, Nokia Priority update the statistics on the use of financial lab in a large urban market in Lima, Peru. Centres and multi-brand handset outlets services, and analyzes changes that took The researchers simulated real will help people in rural areas to open place in 2009―a turbulent year for the microfinance transactions with real bank accounts with YES Bank. The new financial sector in the majority of microentrepreneurs, to interesting results customers will also be helped in economies around the world. In addition – even surprising to some. The performing basic transactions such as to measuring the state of financial access, researchers found that making the debit/credit and transfer of funds. The Financial Access 2010 expands on last availability of future loans contingent on Financial Express (India), August 7, 2010. year’s work by reviewing three policy repayment of a current loan was a major Rich I.P.O. Brings Controversy to SKS areas relevant to the current financial factor in dampening the borrower’s Microfinance. SKS Microfinance is not access debate: financial inclusion appetite for risk. Then, in contrast to the first microlender to go public, and mandates, consumer protection in many of the predictions from theoretical there has long been debate over whether financial services, and access to finance by work on microfinance, it is group lending social enterprises should be turned into SMEs. CGAP and World Bank Group. that increases rates of risky investment – giant commercial operations. Proponents September 2010. “risky” being a positive thing in terms of of commercial microfinancing say the Microfinance activities and the Core potential for growth. This was particularly money raised can provide even more Principles for Effective Banking true when like-minded groups of loans to the needy than relying only on Supervision. The Basel Committee on microentrepreneurs were allowed to form charitable donations. But the I.P.O. for Banking Supervision has issued the final their own groups. By Xavier Giné, Pamela SKS, one of the field’s biggest stock version of its paper entitled Microfinance Jakiela, Dean Karlan and Jonathan offerings yet, has caused its own type of activities and the Core Principles for Morduch. Financial Access Initiative . July controversy. New York Times, July 29, Effective Banking Supervision that 2010. 2010. contains supervisory guidance for the Innovations in Rural and Agriculture With Squeeze on Credit, Microlending application of the Basel Core Principles Finance. This set of 14 briefs clearly Blossoms. Tight credit and the recession for Effective Banking Supervision (BCP) points out the importance of business have increased the demand for smaller to microfinance activities, and the range realities faced by small farmers, including loans in the United States, giving of practices on regulating and supervising low education levels, the dominance of microlending a higher profile and microfinance activities. Bank for subsistence farming and the lack of access broadening its appeal. Both Kiva and International Settlements (BIS). August to modern financial instruments. These Grameen Bank have widened their 2010. conditions mean that new and innovative lending to Americans. New York Times, State of Microfinance Investment: The institutions are required to reach small July 28, 2010. MicroRate 2010 Survey. MicroRate’s 5th farmers. By Renate Kloeppinger-Todd Visa Launches Campaign to Promote annual survey evaluating trends in and Manohar Sharma. IFPRI and World Prepaid Card for Financially Underserved. microfinance investment. MicroRate. July Bank. July 2010. Core to this campaign is Visa’s ability to 2010. reach consumers who may not realize they ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 15 Inclusive Financial Systems Agriculture and Rural Development (ARD) Savings of the Poor: How They Do It. (continued from page 14) Discussion Paper 48. May 2010. This book portrays the concepts of savings The Age of Productivity: Transforming behavior of the poor, various inclusive Why Microfinance Take-Up Rates Are approaches and insights into the Economies from the Bottom-Up. This Low and Why It Matters. Actively regulatory mechanisms in India. This book describes that productivity, the main studying take-up rates, or participation book has captured the wide literature on driver of economic prosperity, is rates, can help us understand the demand the behavior of poor towards savings and languishing in Latin America and the for different microfinance products and distilled the key lessons for the Caribbean and is preventing the region how existing products might be improved practitioners and policy makers. Linking from catching up with the developed to attract more clients and serve them products to purpose, catering to multiple world. Asking why the region is falling better. This note reviews the evidence on needs, focus on short-term savings, farther and farther behind, this book looks take-up. It first discusses why take-up priority to convenience, appropriate beyond the traditional macro explanations rates and participation are important, and incentive design, saving in kind and and digs all the way down to the industry how they can be measured. It then reviews building trust are the key learnings and firm level to uncover the causes of survey data on why people don’t use highlighted in this book. By Sankar Datta, this low productivity. It argues that Latin microfinance products when they are S L Narayana and S Srinivas. The America has inadvertently invested far too available and offers guidance on how low Livelihood School & BASIX. 2010. much of its scarce resources into far too take-up rates might be addressed. By many microenterprises, and not enough Dean Karlan, Jonathan Morduch, Sendhil UPCOMING EVENTS SMEs. That is, the continent is Mullainathan. Financial Access Initiative. Microfinance India Summit: Mission of increasingly recycling its scarce resources June 2010. Microfinance – Need to Reflect and into hugely unproductive Banking Services for the Poor: microenterprises and so away from small Reaffirm. Organized by ACCESS Managing for Financial Success. Today and medium enterprises with a much Development Services, the annual more than ever it is evident that financial higher possibility of generating the Microfinance India Summit has organizations that fail to heed the productivity growth that we know lies established itself as an international principles of sound financial management behind sustainable poverty reduction and conference dedicated to Indian will rapidly find themselves in trouble. economic growth into the longer term. By microfinance. The Summit sessions will This book is designed to offer practical Carmen Pages-Serra. Inter-American focus on current trends and issues relating and clear applications of traditional Development Bank. April 2010. to sustainability, transparency, social financial topics to microfinance performance, commercialization of the Pro-Poor Financial Services for Rural Institutions and all important for the sector, client protection. Water: Linking the Water Sector to Rural donors, consultants and regulators who November 15 – 16, 2010. New Delhi, Finance. This report shows that despite work regularly with microfinance India. the fact that the financial services sector in institutions. By Robert Peck Christen. many countries, particularly in sub- Developing Inclusive Financial Accion International. June 2010. Saharan Africa, are still characterized by Systems: CGAP Course for Funders of Rural Banking: The Case of Rural and manifold constraints and limitations, the Microfinance. The course delivers a full Community Banks in Ghana. . This case future potential of local financial markets curriculum that equips participants with a study describes the history and business for financing rural water is very solid grounding in microfinance and the model of the rural and community bank significant. The potential for increased tools to make sound financing decisions. (RCB) network in Ghana, analyzes its involvement of local financial markets in At the heart of the teaching methodology performance, identifies key issues, and the pro-poor water and sanitation sector are case studies and group work that are makes recommendations on the way is within reach. Successful approaches will built on real‐life situations, allowing forward. The study analyzes the service require a general effort in particular by participants to learn in a creative and delivery and financial performance of the policy makers to develop financial systems interactive method. The course involves a RCBs at two levels: the network of all in sub-Saharan countries, which would site visit to MFIs in the country of banks and a representative sample of 12 benefit from pro-poor rural financial instruction. Participants attending the full RCBs. It finds that although the service services. By Dr. Franz-Josef Batz (GTZ), course (five days) will benefit from delivery performance of the RCB network Stephanie Lorek (GTZ), Johannes carefully sequenced sessions that lead up has been very good, its financial Majewski (GTZ), Christoph Lassenberger to practical application of good practice performance has been mixed. By Ajai Nair (IFAD). GTZ, IFAD and the ARD Rural principles. Those staying for the short and Azeb Fissha. World Bank and Finance Team. March 2010. ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 16 Inclusive Financial Systems discussed include: What is the impact of Inclusive Finance: A Path to MDGs. (continued from page 15) microfinance on the poor?; How to Financial inclusion event launching the increase savings behavior among the BRIDGE initiative, Building Remittance course (three days) will receive a thorough poor? How do interest rates affect the Investment for Development, Growth, overview of the fundamentals of demand for microfinance products?; How and Entrepreneurship, and promoting microfinance. November 8 – 12, 2010. to design appropriate consumer financial inclusion as a contributor to Nairobi, Kenya. regulation?; Does business training help MDGs. September 22, 2010. New York MicroFinancial Services World – 2ND City. microenterprises?; Microinsurance - Annual USA Meeting: “Innovation in impact and product design. FAI, IPA, J- Global Partnerships in Microfinance, Microfinance” . MicroFinancial Services PAL, Moody’s Corporation, Deutsche Bank International Conference. The University World conference including training and CGAP. October 21-23, 2010. New of Greenwich, in collaboration with the workshops is targeted at investors and York City. University of Birmingham and Burgundy practitioners in the microfinance and Financial Inclusion: Achieving Asia’s School of Business, is holding an broader financial inclusion space. The Potential. The forum will bring together international conference on Global conference enables industry leaders to leading microfinance practitioners, Partnerships in Microfinance. The theme identify the next generation of investors in policymakers, financiers, academics and of the conference responds to the microfinance, provides information on advocates as partners in achieving greater imperative need of microfinance to help emerging products within the financial inclusion in Asia. October 12-15, alleviate poverty in a sustainable fashion. microfinance portfolio highlighting their 2010. Colombo, Sri Lanka. Center website, call for papers, and investment potential and evaluating their C5's 4th Annual Microfinance Summit. conference registration. September 6-7, delivery potential for the bottom of the C5's Microfinance summit offers a forum 2010. University of Greenwich, London, pyramid and a full update on the progress for all participants in microfinance to UK. of social performance indicators. Over 50 industry leaders worldwide are presenting meet, network, and participate in 16th Annual Boulder MFT. at the conference. October 25-28, 2010. discussions about the state and future of Participants and world-renowned faculty Washington, D.C. microfinance. are brought together to discuss and The 4th Microfinance Investment analyze issues surrounding Microfinance. Business Planning and Financial Summit affords an opportunity to Throughout the three weeks of intensive Projections with Microfin. This course establish a fresh network of industry technical immersion, participants will be guides participants through a step-by-step contacts and strengthen existing able to challenge paradigms and bring process for developing a business plan and partnerships. Participants come from themselves up-to-date in areas such as financial projections for a microfinance more than 40 countries. October 6-7, management, risk, financial analysis, and institution using Microfin 4.0, the 2010. London, U.K. social performance. The program offers sophisticated financial projections over 45 courses to choose from which software that was developed by the PAST EVENTS allows participants to follow a particular facilitators of this training course, Chuck Alliance for Financial Inclusion (AFI) topic concentration or create their own Waterfield and Tony Sheldon, with Annual Global Policy Forum: Taking unique and cohesive training experience financial support from CGAP, Women's Financial Inclusion to the Next Level. The based on the specific needs of their World Banking, and Sida. October 25-29, 2010 Global Policy Forum is a unique organization, role and interests. 2010. Washington, D.C. opportunity to review and assess progress Participants will complete 96 course Microfinance Impact and Innovation hours. July 19–August 6, 2010. Turin, on financial inclusion policymaking of the Conference 2010. The Microfinance Italy. last 12 months, take stock of key activities Impact and Innovation Conference is a that have taken place within the AFI unique forum for both communication of NEWSLETTERS network and share the lessons learned. accumulated knowledge as well as the EMN Newsletter. European The Forum identified gaps and challenges generation of innovations in both Microfinance Network (EMN) produces a to address bottlenecks and further microfinance product design and quarterly e-newsletter that contains the advance financial inclusion policy in research. Sessions will touch on topics latest news on the sector and information developing countries and set the stage for including microcredit, interest rates, on EMN activities and events, policy defining priority areas for AFI’s work microsavings and business training, developments, member news and profiles program for 2010-2011. September 27-29, among others, framed by questions of and feature articles on topics relevant to 2010. Bali, Indonesia. product design, marketing, usage and microfinance. impact. Questions and issues to be ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 PAGE 17 Inclusive Financial Systems ACCION. ACCION International is a European Microfinance Network (continued from page 16) private, nonprofit organization with the (EMN). The EMN supports the mission of giving people the financial development of microfinance InSight Bulletin. As short, frequent, tools they need, such as microenterprise organisations through the dissemination one-topic bulletins, the ACCION InSight loans, business training and other of good practices and by improving the series highlights ACCION's policy financial services – to work their way out regulatory frameworks for microfinance viewpoints and ongoing research in the of poverty. and self-employment and micro microfinance field. AFI – Alliance for Financial Inclusion. enterprises at the European Union and INSME news. IN Small and Medium Member State levels. AFI is a knowledge network of central Enterprises news is a monthly newsletter banks and other financial regulatory Finance and Private Sector Research. by the INSME Secretariat about its bodies in developing countries. Through The World Bank Finance and Private current activities and issues related to the AFI network, developing country Sector research has been brought together innovation and technology transfer for policymakers share their knowledge and in one team. This reflects the centrality of SMEs. experience with financial inclusion finance to private sector development and Microfinance Capital Markets Update. policies that are proven to work. vice versa and the fact that large parts of Is produced and edited by CGAP and the both sub-disciplines revolve around the IPA - Innovations for Poverty Action. Microfinance Information eXchange (the behavior and performance of firms. This Develop innovative solutions to poverty MIX), and it is dedicated to microfinance website is maintained by the World and policy problems worldwide. capital markets news. Bank’s Development Research Group. Disseminate results of successful Microcredit Summit Campaign evaluations to development practitioners Finscope. A FinMark Trust initiative is Countdown 2005. A newsletter on and policymakers. the most comprehensive national microcredit best practices issued by the household survey focused on the financial International Finance Corporation – Microcredit Summit Campaign. services needs and usage across the entire SME. This site provides an overview of Microinsurance Focus. MicroInsurance how IFC supports SMEs through South and Southern African population. Focus is managed by the CGAP Working investments and advisory work. Global Development Research Center. Group on Microinsurance. Promoting the growth of SMEs in Virtual Library on Microcredit. Articles MicroLINKS Connections. A monthly developing countries is an important part and links to the principle organizations publication by USAID. This newsletter is of IFC’s private sector development active in the field of microfinance. up-to-date information on the mission. Micro-Credit Ratings International Ltd microenterprise work USAID Missions CGAP. Building Financial Systems for (M-CRIL). M-CRIL produces ratings of and partners are doing across the world. the Poor. CGAP is a consortium of 28 microfinance institutions in Asia. The MicroBanking Bulletin. MIX public and private development agencies Microfinance Gateway. Information for Benchmarking source for the working together to expand access to and about the microfinance industry, microfinance industry used by investors, financial services for the poor in including research and publications, donors and other service providers to developing countries. specialized resource centers, organization facilitate greater standardization and a SmartAid for Microfinance Index and consultant profiles, and the latest better understanding of the development helps funders assess the systems they use news, events and job opportunities in of the microfinance sector. to support the design, implementation microfinance. Women’s World Banking. E-newsletter and monitoring of microfinance funding. MicroSave. This website offers practical produced by The Women's World The tool offers an independent review of guidance in the form of research papers, Banking focusing on its publications, participating funders’ strengths and briefing notes, training toolkits and other awards and events. weaknesses in five critical areas: strategic resources on market-led microfinance. clarity, staff capacity, accountability for Planet Finance. The mission of Planet LINKS results, knowledge management and Finance is to support microfinance Financial Access Initiative. The appropriate instruments. programs in countries with operations of Financial Access Initiative is a consortium Development Gateway. This site Planet Finance. of leading development economists includes resources on the provision of focused on substantially expanding access Rural Finance Learning Centre. This is financial services to entrepreneurs and to quality financial services for low- a website dedicated to providing access to micro business in developing countries. income individuals. the best materials for capacity building in the field of rural finance. ACCESSFINANCE | SEPTEMBER 2010 | ISSUE No. 33 19 PAGE 18 Inclusive Financial Systems (continued from page 17) The Microfinance Information The Rating Fund. The Microfinance World Council of Credit Unions. eXchange (MIX). The MIX aims to Rating and Assessment Fund. This WOCCU is a representative organization promote information exchange in the website is maintained by The Inter- and a platform for knowledge exchange microfinance industry. The MIX Market American Development Bank (IDB), The and development for credit unions strives to facilitate exchange and Consultative Group to Assist the Poor worldwide. investment flows, promote transparency (CGAP) and The European Union. Women's World Banking. The WWB and improve reporting standards in the The SEEP Network. The Small network aims to create the possibility for a microfinance industry. Enterprise Education and Promotion low income woman to build her business Network provides access to recent and assets, improve her living conditions, documents, programs and working keep her family well-fed and healthy, groups. educate her children, develop respect at home and in her community and secure a political voice.