Microfinance News Synopsis: IBM launches microfinance IT service platform in Peru

Microfinance Focus, June 8, 2010: Microfinance News Synopsis brings a compilation of industry headlines broadcasted by other news media from across the world.

IBM launches microfinance IT service platform in Peru: The conditions for investment and growth in Peru prompted IBM to develop a center to provide microfinance services in this South American country. Jaime Garcia Echecopar announced IBM’s entrance into the microfinance sector. Jaime Garcia Echecopar, general director for IBM in Peru, Bolivia, Ecuador, Paraguay and Uruguay, announced the launch of this project. You have taken up positions in various subsidiaries of IBM in the region. Now that you are back in Peru, what are your thoughts on the Peruvian technology market? I have returned to Peru in a spectacular moment. Investment conditions are at their best. And we have human resources of the best quality [Living in Peru]

BDO microfinance efforts: MANILA, Philippines – A two-day capacity building program on “Accounting for Non-Accountants” was held for branch officers from CARD-MRI in the BDO Foundation Micro-Finance Center in Bay, Laguna. Twenty-five branch officers attended the two-Saturday seminar with BDO Volunteers speakers Bobby Isip, branch head of Edsa-Balintawak and Jimmy Silva, audit officer, Internal Audit Department. The speakers tackled the basic principles of accounting with emphasis on the accounting equation, significance of debit and credit in business transactions and basic accounting terminologies on the first day [The Philippine Star]

Awareness on micro finance: Awareness programme on micro finance of NGO’s and SHG organized by Holistic Child Development Society Tuensang and sponsored by Nagaland State Social Welfare Board Kohima Nagaland was held on Friday at NGO’s meeting hall Tuensang, with CDPO Sangsangyu, Chotsase Sangtam as resource person. Addressing the gathering on the topic, women and micro finance of SHG and role of NGO’s, Chotsase said due to non availability of government banking and private banking system at Tuensang, the NGO’s and SHG face problem for micro finance for their business purposes. He also said NGO’s must be a non- profit making society and perform their duties well [Nagaland Post]

Regulating microfinance: In 2005, then Reserve Bank of India governor Y.V. Reddy summed up the central bank’s approach to microfinance when he said regulating the industry would militate against its core spirit—informality and flexibility—that had served it so well. Five years later, as a microfinance Bill remains stalled, that regulatory gap still exists. It is perhaps because of this lack of oversight that the Andhra Pradesh and Kerala governments have sought to bring some microfinance institutions (MFIs) in these states under local moneylending norms. As The Economic Times reported last week, the intent has been to control the rates of interest charged on microloans to the poor [Live Mint]

RBI weighs letting MFIs become ‘biz correspondents’: The Reserve Bank of India is considering a proposal put forward by profit-oriented microfinance institutions (MFIs) to allow them to be business correspondents of banks for financial inclusion. Speaking at an international forum in Washington on Friday, Reserve Bank of India deputy governor Usha Thorat said the RBI is examining a proposal that large ‘for profit’ companies, having a wide network of outlets — especially in rural areas, could be allowed to act as business correspondents of banks.“This issue is currently under examination and in doing so possible risks such as conflicts of interest [Economic Times]

Tashkent hosts workshop on international practice in microfinance legislation: A workshop on international practice in microfinance legislation for the specialists of the Cabinet of Ministers, the Central Bank, line ministries, microfinance institutions (MFIs), and other stakeholders was conducted on 4 June. The workshop was organized by the joint project of the Central Bank of the Republic of Uzbekistan and the United Nations Development Program (UNDP) “Support to microfinance sector development”. One of the important components of this project is aimed at the provision of assistance to the Government of Uzbekistan in the improvement of the legislative framework of the microfinance sector [UzReport]

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