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ericfruits · 4 years

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Cambodians are bingeing on microfinance loans

BANGLADESH MAY be the homeland of microcredit, but no country is keener on it than Cambodia. According to its central bank, there were some 160,000 branches of microfinance institutions around the country in 2016—one for almost every square kilometre of Cambodian territory. Almost 2.2m of Cambodia’s 10m-odd adults have a microcredit loan outstanding, according to the Cambodian Microfinance Association (CMA), an industry group. The average debt is $3,320—roughly twice the country’s annual GDP per person. Credit is growing by 40% a year.

The microfinance boom has brought many benefits. An obvious one is a decline in the use of loan sharks. Between 2004 and 2017 the share of households borrowing from formal sources jumped from 8% to 30% while the proportion using informal moneylenders dropped from 32% to less than 6%, according to research published last year by the World Bank. The shift saved people money. The interest rates charged by formal lenders are lower and have been falling for more than a decade, even though some microcredit outfits are purely commercial operations.

All this has made it possible for many Cambodians to fund a new business, obtain an education or pay for urgent medical care. The CMA links growing access to credit to falling levels of poverty. The share of Cambodians living below the national poverty line (earning less than $0.93 a day) dropped from almost 48% in 2007 to less than 14% in 2014—although the main reason for the improvement was Cambodia’s rapid economic growth over that period. Academic research suggests microfinance may have helped improve farming methods and boost living standards for the poorest Cambodians.

But the industry’s breakneck growth may not be sustainable. Household debt has swollen as the size of loans has ballooned. According to the World Bank, the average loan grew “more than tenfold” over the past five years. Larger debts have led to longer repayment periods. “[Cambodia] probably should have had a crisis by now,” admits Daniel Rozas, an adviser to the CMA, “but somehow it hasn’t.”

That may be in part thanks to the efforts of the National Bank of Cambodia, the central bank, to tame the industry. It has raised capital requirements and obliged lenders to maintain hotlines so customers can get in touch directly, if needed, with complaints. It has also introduced rules about how loans should be marketed. The CMA has instituted guidelines for its members, too. And Cambodia has a well-functioning credit bureau.

Some regulations, however, may be exacerbating the industry’s excesses. The central bank’s introduction of an interest-rate cap of 18% a year in 2017 seems to have backfired. Because of the cap, the CMA says, microfinance institutions can turn a profit only by lending more than $2,000. The number of loans of $500 or less declined by 48% after the rule’s introduction, the World Bank estimates. Some fees rose, too.

The CMA says defaults are minimal, with only 1% of loans in serious arrears at the beginning of the year. But there are hints that borrowers are getting into difficulty. The typical loan uses land as collateral, according to a forthcoming paper by W. Nathan Green of the National University of Singapore and Maryann Bylander of Lewis & Clark College in America. Lenders seldom take borrowers to court to repossess land; it is not worth the time and expense for a loan of just a few thousand dollars. But many conscientious borrowers appear to sell their land voluntarily to pay up. Government surveys show that the proportion of people who are landless rose from 32% in 2009 to 51% in 2016. Among the many reasons given for selling land, one of the most common was to repay debts. Given that the government does little to monitor the conduct of lenders, and many land sales are informal, it is hard to tell how voluntary such transactions really are.

Whatever the true state of Cambodians’ finances, they are about to get worse. The garment industry, which until recently employed some 740,000 people, has been particularly badly hit by the covid-19 pandemic, as orders from America and Europe have plunged. Perhaps a third of garment factories have stopped work. Research suggests that each worker in the factories supports three other people, so the effects will ripple across the country. Cambodia’s second-biggest industry, tourism, has been hit even harder.

A farmer in Battambang province gives a sense of the problem. He says that between the downturn brought on by the coronavirus and a recent drought, he is struggling to repay a $600 loan that he took out last year to buy poultry. He relies on a daughter sending part of her wages as a garment-worker to keep making payments—money that is now in doubt.

The government is not blind to the problem. In June Hun Sen, the prime minister, promised to spend about $25m a month to help some 600,000 poor families. The National Bank has encouraged lenders to reschedule or defer payments. The CMA says its members have restructured almost 245,000 loans.

But the few remaining critics of the authorities in Cambodia, which Mr Hun Sen has run for 35 years with ever-increasing repressiveness, clearly consider the growth of debt a weak spot for the government. In April activists called for loan payments and interest accrual to be suspended for three months. In May Sam Rainsy, an opposition politician living abroad, said Cambodians struggling to pay debts should not sell their homes or land. Mr Hun Sen’s advice to lenders was blunt: “Confiscate properties of those who follow the opposition’s appeal not to pay back the loans.” ■

This article appeared in the Asia section of the print edition under the headline "Service economy"

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khalilhumam · 4 years

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COVID-19 pandemic shows the need to strengthen digital safety nets for women

New Post has been published on http://khalilhumam.com/covid-19-pandemic-shows-the-need-to-strengthen-digital-safety-nets-for-women/

COVID-19 pandemic shows the need to strengthen digital safety nets for women

By Leora Klapper The COVID-19 pandemic threatens to wipe out hard-won gains in global development and gender equality. The World Bank reports that the world faces its first increase in extreme poverty since 1998, with between 71 million and 100 million people set to fall into destitution depending on the pandemic’s course, and the crisis affecting women more negatively than men. Governments are scrambling to contain the economic damage. As of June 12, World Bank data indicates that 195 countries have planned, introduced or adapted more than a thousand safety net payments and other social protection measures for the most vulnerable populations. There’s a strong case to be made that these payments should be offered digitally. Compared to cash, digital safety net transfers can cut costs and avoid leakage. And digital transfers can help beneficiaries—especially women—strengthen their household decisionmaking power and bolster their labor force participation. But rapid digitization could create challenges for traditionally marginalized groups like women unless products are well-designed and a robust digital infrastructure is in place. A new report, “Advancing Women’s Digital Financial Inclusion,” prepared for the G-20 Global Partnership for Financial Inclusion by the World Bank, the Better Than Cash Alliance, and Women’s World Banking, examines how government payments can be structured in a way that serves women. The full report highlights 10 policy options to advance women’s digital financial inclusion—including ways governments can make transfer payments safer for women.

Strengthening consumer protections is a key starting point.

Digital government payments offer greater efficiency—but they might expose women to financial services they are unprepared to use. Financial consumer protections reduce the risks from digital finance by making it easier to identify whether a given product or service is fit for its intended use, appropriate for the particular consumer’s needs, fairly priced, and secure, as well as to compare options, seek redress, and ensure women’s financial privacy and safety. Consumer safeguards are also important for building public trust in the financial system. Clear and easy-to-understand product terms may be especially important for low-income women, given their relatively limited financial experience and capability. A mystery shopper audit of 1,000 microfinance firms in Uganda found that information on cost was inconsistent, inexperienced borrowers received less information than experienced borrowers, and printed materials with product specifications were often missing or in violation of guidelines. Governments should support comprehensive consumer protections, including requirements to disclose product prices and terms in clear language. Lab experiments in Mexico and Peru found that presenting participants with simplified statements of key facts about credit and savings products was strongly correlated with good financial behavior. By contrast, financial literacy had a much weaker impact on good financial behavior. Clear and easy-to-understand product terms may be especially important for low-income women, given their relatively limited financial experience and capability. It is especially important to ensure that women have control over any money borrowed in their own name. Effective consumer protection and enforcement on disclosure/transparency of product pricing can also address the risk of fraud. These findings call into question the emphasis by some consumer protection agencies in emerging markets on expensive financial education programs for women, and make the case for shifting resources toward developing and enforcing effective disclosure and pricing transparency regimes instead.

Governments should develop strategies to promote digital skills and financial capability for women.

The evidence for traditional classroom-based financial education is underwhelming. Interventions to enhance financial capability should leverage teachable moments, such as when women are receiving government payments or acquiring financial products and services. Technology—like text messages—can provide information cheaply and improve financial behavior. For example, U.S. consumers participating in debt management programs were more likely to meet their monthly payments when they received low-frequency, task-oriented text messages prompting them to take action. Governments could subsidize entertainment that links emotions and information. In Colombia, rural recipients of conditional cash transfers, who were mostly women, were loaned tablets loaded with entertaining content to boost their financial capability; positive outcomes in financial health were still observable two years later. Evidence suggests that financial training is more fruitful when provided during moments when women have a specific reason for learning financial skills. For example, researchers who provided financial training to migrants and their families found that the training had positive impacts on financial knowledge and behavior such as savings. Using defaults can improve financial behavior as well. In India, when researchers gave people identical weekly payments in cash or into a savings account, the group with accounts dramatically increased savings through a default effect. Evidence also suggests that default effects can improve retirement savings. By enacting consumer protections and investing in appropriate financial education, governments can help bring relief to women suffering from the coronavirus recession—and create the basis for higher financial inclusion for women in the future.

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digitalvishal007 · 5 years

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How to get investment for Startup? Voice of India for Startup

As per the reports, 90% of new startups (Business) have failed due to a lack of funding. It’s hard to survive business without funds. Do you want to know, How to get investment for the startup? Do you believe that money is the bloodline of any startup? Every new startup needs funds fuel to continue his journey. When you’re looking to a good start for your new business, consider with an expert on investment.

Investors for Startup

Do you know, How to get investment for the startup? If no, don’t need to worry. Here is a comprehensive guideline to find Investors for your Startup. Scroll down your mouse to get funding options for your business.

Bootstrapping (Self-funding):-

Without the fund, it’s hard to run the new business. Money is the soul of every startup/business. First of all, an entrepreneur needs a blueprint for business and bootstrapping. Self-funding is also known as bootstrapping. Candidate can invest his own savings or contribute to family and friends.

Crowdfunding for the startup:-

It’s one of the ways of funding for the startup. Crowdfunding sites provide various types of investors who believe in helping new businesses. In another word, a platform where an entrepreneur mentions his business goal, plans, profits share and funding details with reasons, etc.

Read this Article- Best Investment Adviser In India

Angel Networks (Funds) for the startup:-

There are two types of Angel funding. First, Angel investor helps startups individually and second types work in a group of networks. Angel network performs as father i.e. offering mentor-ship, solid advice and provides access to their network of contacts.

Funds based Contests:-

You can raise funds with the help of contests. Participation in these types of business competitions, entrepreneurs encourage business ideas to set up plans. After winning contests, you can get some media coverage and promote your new startup at free of cost.

Bank Loan:-

After all types of registration of your business, you must touch with the nearest bank. The Bank provides two kinds of finances for his customers. One is funding and the other is the capital loan. Make a blueprint plan of your business and approach the bank manager with a complete file.

Business Loan from Micro financer or NBFCs

Microfinance is another option for a business loan. Lacking some documents, what to do? You can approach with Micro-finance providers and Non-Banking Financial Corporation (NBFCs).

Government Programs:-

The Pradhan Mantri Micro Units Development and Refinance Agency Ltd (Mudra) has already started for startup funds with 10,000 Crore in 2014-15. To get this Mudra loan, you have to submit your business plan and after approved you can get a loan according to your business plan. For more details, contact any Govt. bank.

Best Adviser/Mediator Company for Investment

There are many Adviser /Mediator companies in India those are the bridge between Investors and startups. The voice of India for startups (VOIFS) is one of the best adviser companies for reliable investment. If you want to extend your startup, then free feel to contact with a business executive.

Contact Details- 318, 3rd Floor, okay plus spaces, Malviya Nagar, Jaipur, Rajasthan 302017

Call – +91-8448864400, Mail Id– [email protected]

#Bestinvestmentadvisor moneyforbusiness investmentforstartup mediatorbetweeninvestorandstartups

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upshotre · 5 years

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Banks reducing non-performing loans to meet CBN’s threshold

By Tony Ademiluyi A total of nine banks listed on the Nigerian Stock Exchange are reducing the size of their non-performing loans in an attempt to meet the five per cent threshold prescribed by the Central Bank of Nigeria. The CBN in August had set new limits for banks and other financial institutions on the NPL to reflect in their books. The apex bank’s regulation is contained in the Prudential Guidelines to Microfinance Banks, Deposit Money Banks, Mortgage Refinance Companies, Finance Companies, and Development Finance Companies, “The NPL limit banks are required to manage their credit risk effectively. To this end, all banks are to ensure that the level of the NPLs in relation to gross loans does not exceed five per cent,” the apex bank said. Two of the nine banks, Ecobank and FBN Holdings, reported a reduction in their NPLs to 14.5 per cent, according to their half year ended June 30, 2019 results and accounts submitted to the NSE. Group Managing Director of FBN Holdings, Urum Eke, had said on the NPL, “Despite the difficult operating environment, we remain resolute in delivering on our guidance across key metrics including our commitment towards a single digit NPL ratio by the end of the year, as evidenced by the reduction in the NPLs from the last quarter. “Essentially, Atlantic Energy – our largest NPL – was written off, translating into a decline in the NPL ratio from 25.9 per cent in December 2018 to 14.5 per cent as of June 2019, a step that brings us closer to our 2019 target and creates more headroom for quality asset growth. “This is paving the way for sustained improvement in asset quality and a further reduction in impairment charges that will allow us to take advantage of enhanced earnings opportunities when they arise.” Sterling Bank Plc reported 8.7 per cent NPL as at H1 2019 while Union Bank Plc reported NPL ratio that dropped from 8.7 per cent in 2018 to 7.1 per cent in H1 2019. The MD/CEO, UBN, Mr Emeka Emuwa, said, “Our priorities in 2018 were three pronged – enhancing our productivity across board; tightening our loan portfolio (especially resolving key large exposures which drove the NPLs up significantly at the end of 2017); and optimising the bank’s capital and funding base. “I am pleased to report that we made significant strides in each focus area. Notwithstanding a depressed economic environment and a challenging operating landscape, our efforts to optimise productivity delivered results. “Through an aggressive focus on recoveries and recognising fully provisioned loans on our books, we successfully reduced the bank’s NPL ratio, which is now down to 8.1 per cent in 2018 from 20.8 per cent at the end of 2017, in line with guidance provided at the start of the year. “In 2019, we will continue to maintain focus on recoveries while prudently rebuilding our loan book and maintaining a conservative risk profile.” Further checks revealed that Fidelity Bank Plc’s NPL closed the period under review at 5.4 per cent while that of Zenith Bank Plc increased from 4.9 per cent in 2018 to 5.3 per cent in H1 2019. Zenith Bank in a statement said, “Our robust risk management ensure that our absolute gross NPLs remained flat. However, the marginal movement in NPL ratio was as a result of the three per cent reduction in our loan books from N2.02tn as of December 2018 to N1.95tn at the end of the period. “We are creatively deploying new retail loan products to ensure we capture a reasonable share of the retail loan market.”

Read the full article

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phgq · 4 years

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DTI urges financial institutions to offer Islamic financing

#PHnews: DTI urges financial institutions to offer Islamic financing

MANILA – The Department of Trade and Industry (DTI) is encouraging public and private financial institutions in the country to offer Islamic banking and financing services amid the coronavirus disease 2019 (Covid-19) pandemic.

In a statement Monday, the Export Marketing Bureau (EMB) said offering Islamic financing will help micro, small and medium enterprises (MSMEs) offering Halal products and services to survive during this challenging business environment.

The EMB said inviting more financial institutions to engage in Islamic banking and financing is part of its initiatives as the secretariat of the Philippine Halal Export Development and Promotion Board which assists exporters to venture into Halal markets.

Recently, EMB and the Philippine Trade Training Center-Global MSME Academy conducted a webinar on Covid-19 Islamic financing assistance which was attended by 400 participants, including MSMEs and large businesses in sectors of food, cosmetics, pharmaceutical, logistics, financing, tourism and hotel, restaurant and catering services.

“I am pleased to finally have a particular session on Islamic banking and finance to discuss possible options for our MSMEs who are seriously affected by the Covid-19 pandemic. I personally requested this session because I know that financing is a very crucial part of our businesses as we keep our heads above water amid this health crisis,” DTI Undersecretary Abdulgani Macatoman said.

Among the financial institutions that offer Islamic financing in the country include Amanah Islamic Bank, a subsidiary of the Development Bank of the Philippines, and the microfinance institution ASA Philippines Foundation.

Amanah Islamic Bank offers loans amounting from PHP50,000 to PHP500,000.

The bank is also in search of partnerships and funders to address pending loan applications.

ASA Philippines, on the other hand, has assisted some 31,783 borrowers in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as of June 30, 2020, with average loan amounting PHP16,106.

According to the Bangko Sentral ng Pilipinas, Islamic banking and financing operations are in accordance with the Shari’ah principles.

This prohibits the financing of haram activities such as gambling, prostitution, alcoholic liquor, nightclubs, and narcotics.

It also follows ethical guidelines on fairness and social justice, prohibiting riba or interest, gharar or ambiguous or risky transactions, and maysir or gambling.

Frank Lloyd Gonzaga, Small Business (SB) Corp. Vice President for Planning and Advocacy, said the loan program of SB Corp. aimed for MSMEs affected by Covid-19 pandemic, and the lockdown measures of the government mirror the principles of Islamic financing.

“SB Corp. Covid-19 Assistance to Restart Enterprise (CARES) program is the Corporation’s milestone contribution to inclusionary financing; a financing model mirroring Islamic financing principles,” Gonzaga said.

CARES program allows micro and small businesses to borrow money from SB Corp, the financing arm of DTI, with zero interest rate with repayment between 18 to 30 months. (PNA)

***

References:

* Philippine News Agency. "DTI urges financial institutions to offer Islamic financing." Philippine News Agency. https://www.pna.gov.ph/articles/1111780 (accessed August 11, 2020 at 03:04AM UTC+14).

* Philippine News Agency. "DTI urges financial institutions to offer Islamic financing." Archive Today. https://archive.ph/?run=1&url=https://www.pna.gov.ph/articles/1111780 (archived).

#Philippines #News #Filipino #Pinoy #Tourism #Politics #Culture #Editorial #Environment #Society #History

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vsplusonline · 4 years

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Will microfinance survive the Covid-19 crisis? Yes, it will thrive

New Post has been published on https://apzweb.com/will-microfinance-survive-the-covid-19-crisis-yes-it-will-thrive/

Will microfinance survive the Covid-19 crisis? Yes, it will thrive

By Manoj Kumar Nambiar

It was almost 1130 hrs and Rekha Devi (name changed for privacy), in a village in Madhya Pradesh was getting worried as it was her repayment date/time to the microfinance company that she had taken a loan from, and the scheduled meeting did not happen that day. She had taken a small Rs 20,000 loan from the company, a few months back to run her small grocery shop and support her family of four. Being very particular about paying her installments back regularly, she walked alone to the branch office to pay the money to the surprise of the branch staff. The day was 25th March, 2020, the first day of the national lockdown announced in India!

Customers like her form the backbone of the microfinance sector in India, which today through various forms covers over 100 million women with a credit portfolio outstanding of over Rs 3 lakh crore. With a collection efficiency of an outstanding 99% plus it can put retail, MSME & corporate clients to shame.

Microfinance institutions (MFIs), with their field network, use the Grameen methodology, CB and residence checks, and financial literacy sessions, to provide unsecured loans to meet the credit needs of these clients, within a week of the initial application, to be paid back weekly/fortnightly or monthly as per the client’s preference. So how does this sector, which caters to the Bottom of the Pyramid clients, not only survive but evolves stronger after every crisis?

Various studies done in India show that while 40% plus people from the underserved strata avail loans, only 8% subscribe to RBI regulated institutions, the rest coming from informal sources (Findex and NABARD studies 2018). In a country of over 1.3 billion people, one can imagine the extent of financial exclusion, especially in the semi-urban and rural geographies. Estimates show that even with this reach of credit supply, just about a third of the market is being served through formal institutions.

The microfinance client has an almost zero gestation period business model and one which could give a 10- 20% return in a single day allowing it to be up and running immediately. Since it caters to basic necessities, demand is also not an issue.

High level of customer connect, smaller ticket sizes and frequent repayments ensure high collection efficiency. Loans come at very reasonable Rs 1000 – 1200 interest charge for an Rs 10,000 loan for 12 months – the rate charged by private financiers could be sometimes 12 times that amount. Hence the customer would not want to spoil the suspension of any future-credit with group indiscipline and non-payment.

This sector that has been built with these extraordinary women customers who have, over the last 30 years, survived many crises and bounced back through drought, flood or cyclone. The spectacular turnaround of a microfinance company that went through a CDR in the 2010 AP crisis, and went on to do a successful IPO last year reinforces the belief that both, the customers as well as the companies/employees in the sector are resilient and never give up. Post the AP crisis, the sector got regulated by the RBI with clear microfinance guidelines, established CB discipline and got two RBI recognised Self-Regulatory Organisations (SROs) followed by strong investor interest and bank support with debt funding. Post demonetisation in 2016, where the clients took time to get the old notes changed to new ones to pay while activists twisted the RBI forbearance on asset classification to a loan waiver, the industry pursued and embarked on a cashless initiative – today almost 95% plus on disbursements and an increasing 33% on repayments are made in a cashless manner, thanks to the PMJDY initiative. Post devastating floods in TN in 2017, Kerala in 2018 and Cyclone Fani in Odisha in 2019 crippled the clients’ businesses, MFIs played a key role in extending credit to and nursing them back to health.

With entities like banks and non-banks now active in microfinance the sector, in a world class initiative, established the Code for Responsible Lending (CRL) in microcredit in 2019. Various other initiatives such as daily submission of credit data to the bureau, not lending to an NPA client, lending within agreed indebtedness limits have made this a responsible and responsive sector.

Even in the current lockdown, the companies and its over 2 lakh employees are active, conducting virtual group meetings with their clients, highlighting the need for safety and hygiene in the COVID 19 crisis and reassuring them on the financial front

Does this mean the global pandemic will not have any impact on this sector? Of course, it will. Clients have to get back to normalcy, repayments might get delayed and tenures of loans might get extended. But, this business, unique in being a double bottom line of social and financial objectives, is about living with them and mirroring their cash flows especially in such difficult times.

Financial provisions will be taken, but eventual credit losses will be much lesser given the ecosystem today. When the lockdowns finish and clients make efforts to restore normalcy, they will find us ready and waiting to help. They will need help to fully avail the RBI moratorium announced till end August, 2020, financial advice to rebuild their lives and additional credit to support their livelihoods. Given the RBI and the government priority in ensuring liquidity, the lending banks will extend support.

The Indian microfinance sector can and will play a major role in ensuring confidence and credit at the grassroots when it is needed the most to rebuild our country. After all many more millions of Rekha Devi’s are waiting for us to serve them …and in the process aid nation building.

(Manoj Kumar Nambiar is MD of Arohan, the 5th largest NBFC MFI in India, an Aavishkaar Group company and is also the current Chair of MFIN, the industry SRO)

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csrgood · 5 years

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Whole Planet Foundation and Our Partners Respond to COVID-19

I am not sure where in the world you are located, but your lifestyle has surely been impacted by what has been happening. Social distancing is the new normal, schools are closing, businesses are closing, and borders are closing. Never in my lifetime has a single threat engulfed the whole world at once. No doubt these are challenging and ever-changing times, and as our Executive Director points out, we are living history.

I want to share with you how microfinance is responding to this coronavirus, and its impact on the microentrepreneurs we support through our network of partners on the ground in communities around the globe.

Microfinance clients do not have the luxury of working from home. If their businesses stop, they do not have paid sick leave. As we know well, microcredit has the potential to provide opportunity by jumpstarting or fueling small business, but it does so much more for those living precarious and volatile lives. Access to capital, when provided in a responsible and client-centered way, smooths consumption, offers protection from economic shocks, encourages long-term planning rather than the stress of living day to day, empowers women, and promotes productive investment.

Microcredit is a lifeline for our beneficiaries’ businesses and thus their livelihoods and it is exactly during times of crisis that it is most important. We have seen this before in West Africa during Ebola, in the Philippines after Super Typhoon Yolanda, the massive 2010 earthquake in Haiti, the earthquake of 2015 in Nepal, typhoons across the Pacific and from countless regional wars and conflicts. In a nutshell, here is what we have learned about disasters from working across 77 countries:

As always, poor and marginalized people without access to adequate safety nets are the most at risk

Shocks cause people to fall back into poverty

Disasters result in significant loss of livelihood

Programming is impacted by disruption of market and supplies chain activities, including closing of local and livestock markets

Whole Planet Foundation field partners work in both the immediate response and long term reconstruction process

Over the years of working with some of the best microfinance organizations around the world, we have observed the following best practices from our microfinance partners during a crisis:

Prepare relief kits

Suspend loan repayments

Offer loan restructuring

Offer bridge loans

Offer emergency low-interest loans

Offer new reconstruction/housing loans

Link affected clients with relief efforts

Help transmit public health messages

It is no surprise to me that many of our microfinance partners have already leapt to action in response to COVID-19. Many have taken a number of steps to safeguard and support their staff and borrowers and to mitigate/minimize risks to the organization. Here are some of the first responses reported:

In Kenya, our partner BOMA, has set up a COVID-19 Task Team that has started to communicate best practices on personal hygiene and social distancing to prevent and minimize the spread of COVID-19 virus and instructions on the changes taking place in how BOMA conducts daily business. All international travel, as well as travel between field and regional offices, has been suspended until further notice. All donor and partner visits have been suspended until further notice. In accordance with governments guidelines, the organization has curtailed their program mentorship and monitoring activities by restricting mentors’ movements to their own villages/locations. Mentors are instructed to avoid visits to towns, markets and BOMA businesses in densely populated areas. In remote villages, where it is difficult for participants to access information about this pandemic, BOMA mentors, in small group meetings, are sharing Ministry of Health guidance on COVID-19 and conducting training on hygiene and disease prevention.

BOMA’s early investment in using technology for program monitoring and management and equipping and training their field staff in the use of tablets is enabling them to quickly adapt to remote work, remote field staff support and management needs. They report:

Overall, we know that the coming days, weeks, and even months, will pressure test our organization’s ability to support both the needs of our staff and participants. However, we feel confident in the great attributes of BOMA as a resilient, adaptive, innovative, results and data driven organization. Our biggest asset, our dedicated board and staff remain healthy, strong and resilient. We are deeply rooted in, and continue to enjoy the support and buy-in from, the communities we work in. We have an incredible base of committed partners, donors and champions. That, we believe, will enable us to successfully navigate any obstacles ahead. As this pandemic is a fluid situation, we will continue to provide regular updates to you as the situation evolves. We are grateful for your thought and financial partnership and remain committed to our mutual goal of ending extreme poverty in the drylands of Africa.

Our long-standing partner BRAC in Bangladesh reports: Our teams are coordinating with the Government of Bangladesh, the World Health Organization, and relevant local authorities. Across the entire BRAC family, we are training our staff, as well as community health workers, in hygiene and awareness campaigns so they can educate the broader community about how to minimize health risks while ensuring their own safety. In the camps and settlements of Cox's Bazar, a city in southeastern Bangladesh, our health team is developing public health messages to protect the vulnerable communities that are sheltering there. In all instances, we are working in tandem with and in support of the work of national governments. In Latin America, Chilean partner, Fondo Esperanza, is allowing for flexible payments through the end of March and assuring partners that late payments will not affect their account or ability to request future loans. In Paraguay, Fundación Paraguaya is promoting repayment through mobile banking and payments that can be done at various convenience stores; offering bank transfers for new/renovated loans and offering hygienic products to those who need them.

Our partner Grameen America, that operates across 15 U.S. cities, reports that its staff has been equipped with remote systems and processes to continue the organization's lending program to underserved women entrepreneurs. Grameen America reports:

Our priority remains working seamlessly as a team to support our branches and our members across the country. Our branch operations across the country have been set up to continue to serve our members during this time of uncertainty, transitioning to implementing remote systems and procedures. Center meetings will be conducted virtually for our borrowers, and disbursements and repayments will continue thanks to the digital technology innovation that has been in effect for several years nationwide.

As the impact on communities continues to escalate, we remain flexible and prepared with contingency plans in every scenario. We remain committed to operating our program and serving our members and their businesses across the country, who need the affordable and available access to capital and community support Grameen America offers.

While the Whole Planet Foundation team based around the world is grounded, our work is not on hold. We will continue to monitor existing projects, review authorized funding disbursements, and continue communicating with partners as they look to tackle this crisis. We are in the process of designing new processes to do this remotely, and even though we may have to change our approach, we will do all we can to maintain and increase the support we give, especially as the risks increase for the very poorest. It is now more important than ever.

At a time like this we all need to laugh, share, connect, and be together...from a safe distance. Please take good care of yourselves and those around you.

Learn more and support Whole Planet Foundation here.

source: https://www.csrwire.com/press_releases/44208-Whole-Planet-Foundation-and-Our-Partners-Respond-to-COVID-19?tracking_source=rss

#CSR #corporate social responsibility #social good #philanthropy #employee engagement #workplace givi

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planify · 5 years

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Suryoday Small Finance Bank Pre IPO Review & Analysis

Suryoday Small Finance Bank IPO Review, Allotment Status, Subscription, Price, Date & More.

Let’s have a detailed review of the company and analytics of the Suryoday Small Finance Bank IPO release date, IPO offer price, subscription, Suryoday Small Finance Bank IPO allotment, grey market price and other details like the company’s background, its financial positions, and its other related things.

Summary of Suryoday Small Finance Bank

Suryoday - ‘Sunrise’ in Sanskrit, signifies a new dawn, a new beginning and this encompasses our strong commitment to financial inclusion. In the past, as Suryoday Micro Finance and now as Suryoday Small Finance Bank.

Suryoday journey from Micro Finance to a Small Finance Bank took just eight years. Today over a million ‘smiling customers’ stand testimony to our belief that ‘no matter what, dreams, when enabled will transform mankind and create a whole new world around’.

Suryoday has among the 10 companies and the only one from Maharashtra to obtain a ’Small Finance Bank’ license from the Reserve Bank of India (RBI).

Suryoday Small Finance Bank is a new age bank that went live on January 23rd 2017. Its endeavor is to bring the best banking solutions to the ‘banked’, ‘under-banked’ and the ‘un-banked’ sections of the society. The Bank’s focus is to continue to be on ensuring the best in class ‘Customer Experience’.

As a bank, Suryoday

- Offers its existing credit products suite of MFI loans, Vikas Loans, Shopkeeper Loans etc. to new and current customers.

- Offers digital banking as the key account differentiator to customers using the extensive seeding of Aadhar biometric identification system, NPCI’s payment systems and mobile technologies whilst continuing to explore banking through traditional channels.

- Focuses on the unserved and the underserved through innovative banking practices and continue to expand reach in states where it currently doesn’t has a presence

Promoters of Suryoday Small Finance Bank

Mr. Baskar Babu Ramachandran

- MD & CEO of Suryoday Small Finance Bank Ltd.

- Over 20 years of experience with Cholamandalam, HDFC Bank, GE Capital in leadership roles.

Mr. P Surendra Pai

- Retired in 2002 as a Vice Chairman of Wipro Ltd.

- Executive Chairman of Murugappa Group till 2006.

- Independent Director of Federal Bank till 2010.

Mr. P S Jagdish

- Director Emmjay Financial Ventures Pvt Ltd.

- Promoter of Indo Tech Transformers Ltd.

- Former President of Indian Transformer Manufacturers Associations.

Mr. G V Alankara

- Director & Compliance Officer Old Bridge Capital Management.

- Ex-Fund Manager Canara Bank Mutual Funds.

- Ex-Head of Dealing - SSKI Securities Ltd.

Board of directors

Mr. R. Ramachandran

- Currently Independent Director with the Gati group.

- Ex-Chairman & Managing Director - Andhra Bank.

- Ex-Executive Director - Syndicate Bank.

Mr. Mrutyunjay Sahoo

- Independent Director

- Ex-Special Chief Secretary to the Government of Andhra Pradesh.

- Ex-Director as government nominee in Navratna and Miniratna PSUs.

Mr. Jyotin Mehta

- Independent Director

- Ex-GM and Company Secretary of ICICI Bank Ltd.

- Ex- Chief Internal Auditor of Voltas Ltd. Currently Director with ICICI Prudential Trust, Monnet Ispat & Energy and some companies of the ASK group.

Ms. Meena Hemchandra

- Independent Director

- Retired Executive Director of Reserve Bank of India having over 35 years of experience spread over various departments. Has been CGM-in-charge of the Mumbai Region of the Department of Supervision, RBI , has chaired the ‘Standing Committee on Cyber Security in Banks’ and overseen the issue of cyber security guidelines from the RBI. An MA (Economics), CAIIB and CFA by qualification, she has academic and Board- level experience having been on the Board of several Bank Boards.

Mr. Arun Diaz

- Independent Director

- Post 28 years of world-wide assignments with Standard Chartered Bank, he is now a Consultant in Banking and an entrepreneur in the healthcare sector involved in Venture Capital. An MBA from XLRI, he mentors new and upcoming entrepreneurs.

Mr. Ranjt Shah

- Nominee Director

- Over 36 years of varied experience, including thirteen years as a private equity investor.

- Managing Partner and Co-Founder of Gaja Capital leading investments in the consumer, financial services and infrastructure ancillary sectors.

Mr. Aleem Remtula

- Nominee Director

- Has over 15 years of experience in impact investing with socially-responsible, venture capital and private equity funds in the U.S. and Europe and is a Economics graduate from Princeton University and also an MBA from Harvard Business School. He is currently Managing Director at Developing World Markets, a U.S.-based impact investment manager and manages the firm’s private equity investments across Asia, the Caucasus, and East and South Africa. Aleem also serves on the board of the Aga Khan Foundation, USA and consults on financial access strategies and products for the poor and ultra-poor across multiple countries.

Mr. Baskar Babu Ramachandran

- MD & CEO

- MD & CEO of Suryoday Small Finance Bank Ltd.

- Over 20 years of experience with Cholamandalam, HDFC Bank, GE Capital in leadership roles.

Key Institutional Investors:

- HDFC

- HDFC Life

- IDFC First Bank

- Kotak Life

Industry Overview:

- The Indian Banking structure has undergone appropriate transformation with the formation of a new banking institution – Small Finance Banks (SFBs).

- These SFBs are expected to penetrate Rural India and help achieve financial inclusion by providing basic Banking and Credit services to a larger population.

- SFBs also work as institutionalized systems to undertake deposits, which enables them to access low-cost funds as compared to NBFCs.

- The loan portfolio of SFBs is expected to grow at 25-30% with share of microfinance declining to around 40% by March 2020, according to a report by rating agency ICRA.

Suryoday Small Finance Bank IPO Allotment Status, Subscription, Price, Date & More.

Suryoday Small Finance Bank IPO date has not been released yet. Once the IPO date has been issued, the subscription details will be updated regularly. The Allotment status will be announced about 3-4 weeks of the IPO issue date. The price band of the IPO will be known only after the offer price of the IPO issues is known. One can know about the price band of the IPO in about a week.

Planify View Over Suryoday Small Finance Bank:

- We at Planify believe, after considering the bank’s financials and capital structure, that the bank is going to be a safe bet and it could grow exponentially in the coming years. After analyzing all the aspects we would give the bank a rating of 4 out of 5.

Want to buy Suryoday Small Finance Bank Unlisted Shares? Come right to us!

- Mail Us On - [email protected]

- Or Call Us On - (+91) 706-556-0002

Investment Disclaimer Investment in Pre-IPO Equity is subject to market risk. The investor should take an informed decision before investing in any company.

Planify Disclaimer An investment made on the Planify Platform is made through pooled investments that acquire shares of private companies and are not a direct investment in these companies.

Transaction Disclaimer Planify facilitates the smooth execution of the transaction. If in case, Planify is not able to provide or supply the requisite agreed inventory, it will return the transaction amount in the same account through which the funds are received.

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kingmindint · 6 years

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Research Paper Declares Bitcoin Compliant With Shariah Law

Bitcoin and cryptocurrencies are intriguing because they are very different from the traditional financial systems we use today. One particular subject people have pondered is whether or not bitcoin complies with the religious law that forms a part of Islamic tradition — otherwise known as Shariah Law. This week a microfinance firm based in Indonesia, Blossom Finance, published a 22-page working paper that concludes that “bitcoin qualifies as Islamic money, except where it is banned by a local government.”

Also read: Bitgrail’s $170M Hack Continues to Provide Drama

Is Bitcoin Halal or Haram?

Over the past few years since the creation of bitcoin, many people have wondered if cryptocurrencies are compatible with Shariah-compliant finance. Islamic banking has a lot more rules that apply to profit sharing, loss bearing, leasing, safekeeping, and more. For instance, Shariah Law specifically prohibits usury which is called “riba” or collecting interest paid on loans. Bitcoin and cryptocurrencies have come into question over the years concerning whether or not they comply with Islamic banking. Just recently this past December a Muslim cleric declared that owning bitcoin was compatible with Islamic finance. However other clerics have disagreed with this opinion and Egypt’s top Islamic cleric had issued a fatawa (religious edict) against bitcoin.

Is Bitcoin Halal or Haram?

Blossom Publishes a 22-Page Study on Bitcoin and Islamic Finance

This week news.Bitcoin.com spoke with Matthew J. Martin, the founder of the startup Blossom Finance that uses cryptocurrency to help Muslims with Islamic financial law. Martin and Blossom’s internal Shariah advisor and Shariah compliance officer, Mufti Muhammad Abu Bakar, published a study that concludes bitcoin does qualify as Islamic money, unless a local government forbids the use of digital currencies. The research explains an in-depth analysis of the various legal opinions (fatawah) on the subject of Islamic banking and bitcoin.

Martin explains that even though cryptocurrency interest continues to grow there is a lot of confusion among Muslims who make up close to a quarter of the world’s population. Many individuals have asked Martin if bitcoin and other cryptocurrencies comply with the set of rules followed by Muslims in accordance with the guidelines of the Quran.

“Contrary to popular myth, Shariah law is not a single set of rules; it’s is a scholarly field subject to differing interpretations and opinions on various matters,” explains the CEO of Blossom Finance. “Several recent fatawah issued by prominent Muslim scholars offered incomplete or contradictory opinions on the topic. With all the confusion out there, we wanted to offer clear guidance supported by solid research that benefits both laypeople and practitioners of Islamic finance.”

I’ve had so many people ask me ‘Is Bitcoin halal or haram?’, and the honest answer is ‘it depends’. Bitcoin is not just a currency, but it’s also a transaction and payment network. And blockchain itself is a whole category of technology with wide ranging applications.

Matthew J. Martin, the founder of the startup Blossom Finance.

National Law Supersedes Shariah

Martin clarifies that bitcoin qualifies as Islamic money as being a “customary money” but national law supersedes Shariah permissibility. For instance in Germany, Martin explains that bitcoin is recognized as a legal currency and therefore qualifies as Islamic money in Germany. But the Republic of Indonesia published guidelines this past January that declared all payments within Indonesia must be in Indonesian Rupiah.

“However, this clarification should not be seen as an anti-bitcoin stance — the same legal tender laws in Indonesia also forbid gold, silver, US Dollars, and Euros — It remains legal to buy and sell Bitcoin in Indonesia,” Blossom Finance details.

Blossom Finance says bitcoin technology is highly aligned with the Shariah goal of reducing excessive uncertainty.

Bitcoin With the Shariah Principles of Money, but ICOs Are “Uncertain and Not Advised”

The founder of Blossom emphasizes that bitcoin technology is highly aligned with the Shariah goal of reducing excessive uncertainty. Moreover bitcoin’s compatibility with the Shariah prohibition against fractional reserve banking.

“Blockchains prove ownership of the asset – it proves you actually have the money you’re sending in a transaction. Conventional banking literally loans money into existence, and that is completely incompatible with the Shariah principles of money.”

Blossom’s study does research the clarity of initial coin offerings (ICOs) and if they comply with Shariah Law. At the moment Blossom Finance states “ICOs are highly uncertain, and not advised.” This is because one of the key goals of Shariah is the preservation of wealth and understanding that individuals should not invest more than they are willing to lose.

“ICOs, or initial coin offerings, often lack clarity on: a) what are investors actually buying, and b) what are the investors’ rights,” the report concludes.

Many such offerings likely fall afoul of having gharar, meaning, excessive uncertainty, and therefore do not qualify as permissible Islamic investments.

The 22-page working paper which discusses the subject of bitcoin and Islamic finance compatibility in great detail can be found here.

What do you think about cryptocurrencies complying with Islamic finance? Let us know your thoughts about this subject in the comments below.

Images via Shutterstock, Pixabay, Blossom Finance, and Matthew J. Martin

The Bitcoin universe is vast. So is Bitcoin.com. Check our Wiki, where you can learn everything you were afraid to ask. Or read our news coverage to stay up to date on the latest. Or delve into statistics on our helpful tools page.

The post Research Paper Declares Bitcoin Compliant With Shariah Law appeared first on Bitcoin News.

source: https://news.bitcoin.com/research-paper-declares-bitcoin-compliant-with-shariah-law/

Post source: Research Paper Declares Bitcoin Compliant With Shariah Law

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The post Research Paper Declares Bitcoin Compliant With Shariah Law appeared first on Bitcoin Geek.

via Kingmind Research Paper Declares Bitcoin Compliant With Shariah Law

#Kingmind #Kingmind International

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ttlinn · 7 years

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CBM not disclosure on the fintech firm..

A prominent mobile money company appears to be flaunting regulations aimed at providing consumer protections in the burgeoning sector.

By FRONTIER STAFF

IN LESS than a year, OK Dollar’s bright yellow billboards have become a feature of the Yangon streetscape, visible from flyovers and high rises, at street level and in traffic jams.

The company, a subsidiary of Internet Wallet, is winning many customers to its service, which enables them to deposit, withdraw, send and receive money using an online account. They can also use the wallet to pay for a range of goods and services.

OK Dollar is one of the new breed of “fintech” companies taking advantage of rapidly growing mobile phone and internet use to offer financial services. And OK Dollar appears to be leading the pack. According to business manager Ma Zin Mar Nu, the service has attracted about 100,000 users since it launched in June 2016.

There are two reasons for OK Dollar’s success. The first is convenience. OK Dollar is easy to use, but also has a wide network of partners with which users can pay for everything from phone top-up cards and bus tickets to wedding and holiday packages. The company has developed a platform that encourages its customers to not only bank with OK Dollar, but also use it regularly for purchases.

The other factor is that it’s cheap; money transfers, known as remittances, are free.

There’s only one problem. OK Dollar doesn’t have what’s known as a Mobile Financial Services licence – a licence for non-bank financial institutions to perform tasks such as accept deposits and transfer money using a mobile platform.

Instead, it appears to be operating in a grey area with little regulation. In an industry that is yet to find its feet, that has many concerned – and confused as to why the regulator, the Central Bank of Myanmar, is not taking a tougher line.

Which licence?

Central Bank rules divide mobile-based financial services into two categories: mobile banking and mobile financial services.

This reflects earlier differences over whether mobile financial services should be bank-led – that is, offered by or in conjunction with a traditional bank – or operator-led. Under the previous government, Myanmar initially opted for the first model, promulgating the Mobile Banking Directive in December 2013. It requires companies to partner with a licensed bank to offer financial services, and users need to open a bank account.

However, after the Financial Institutions Law was enacted in January 2016, the Central Bank issued a Regulation on Mobile Financial Services. The March 30, 2016, regulation was issued “to create an enabling regulatory environment for efficient and safe mobile financial services in Myanmar”, said the Central Bank. It allows mobile network operators and non-bank financial institutions to apply for a mobile financial service licence, but also sets stringent rules on their operations to protect customers and the integrity of the financial services sector.

Central Bank Deputy Governor U Set Aung said some foreign and domestic fintech service companies are working with banks and operate under the licence of the respective bank. This group includes TrueMoney, Myanmar Mobile Money, myKyat, Ongo and 663.

Only two operators have so far received an MFS licence. Wave Money – a joint venture among Telenor, First Myanmar Investment and Yoma Bank – was the first, in October 2016, and M-Pitesan – a partnership between Ooredoo and Co-operative Bank – was approved on July 26.

Although the regulation says a decision on applications should be made within 90 days, in practice the Central Bank is taking much longer to process them; Wave Money waited at least seven months, while the M-Pitesan application was processed in about four months.

The rise of OK Dollar

Despite its relative success – in the mobile financial services industry, only Wave Money has the same prominence in the market – OK Dollar’s origins remain something of a mystery.

It was born out of a payment system known as iPay that was launched about five years ago. Despite its name, it was relatively low-tech – prepaid cards that could be used to make payments, such as for bus travel – and never really took off.

OK Dollar’s owners keep a low profile and rarely speak to the media. The Directorate of Investment and Company Administration lists the company’s directors as Mr Deepak Kumar, also known as U Maung Maung Oo, and Mr Vinod Kumar, known as U Tun Tun Win. Their portfolio includes such companies as Consumer Goods Myanmar, Crown Beverage Cans, Kispa Nadi Express, Delicious Food, and Malikha Automobile. Consumer Goods Myanmar employs more than 5,500 people, says its website, and distributes brands including Super Coffeemix, Designer Water and One Tea.

jtms_mobilebanking01.jpg

OK Dollar, a subsidiary of Internet Wallet, emerged from a short-lived prepaid card system named iPay. (Theint Mon Soe aka J | Frontier)

Earlier this year, OK Dollar’s managers agreed to be interviewed by Frontier about the business.

General manager Ma Aye Aye Sint said OK Dollar’s parent company was licensed by the Central Bank to offer microfinance services. Internet Wallet received the MFI licence “a couple of years ago”, she said. It waited and prepared its IT infrastructure to offer mobile payment services, before launching last year.

She said that any money kept in an OK Dollar account was deposited at a licensed bank, such as CB, KBZ or AYA. OK Dollar users earn no interest on these deposits.

Aye Aye Sint insisted that the company was following “all rules and regulations”, including what are known as “know your customer” rules. The rules are designed to combat money laundering and other illegal activities, and require users to disclose personal information when they open an account.

She also claimed that OK Dollar does not offer remittance services because it does not have the appropriate licence from the Central Bank. It applied for a mobile financial services licence in 2016, she said, but has not yet received approval.

Immediately after the interview, Frontier opened an OK Dollar account, deposited K80,000 and transferred it to another person with an OK Dollar account. They then withdrew the K80,000.

When making this transfer with OK Dollar, Frontier was not asked to register a SIM card, or provide a national ID card or driver’s licence, as required under the Mobile Financial Services regulation for transfers above K50,000 in a single day.

If OK Dollar is enabling users to remit money without the necessary licence, it could constitute a serious breach of the Financial Institutions Law. The penalties for operating a non-bank financial institution without a licence include a prison term of two to five years, and a fine of up to K500 million.

Seeking answers

On the question of licensing, the terms and conditions on the OK Dollar website are confusing. They state that the services operates “under the certificate of authorization issued by” the Central Bank of Myanmar and Myanmar Micro Finance Institute.

They then state: “OK Dollar services are governed by: (a) the payment and settlement systems act, and regulations made thereunder, (b) issuance and operation of pre-paid payment in Myanmar (CBM) directions, ("CBM guidelines"), MMFI and other regulatory institute directions, and (c) instructions issued by the CBM & MMFI from time to time in respect of the foregoing.”

Aside from the lack of clarity in the language, Myanmar does not have a Payment and Settlement Systems Act (a law of that name was enacted in India in 2007).

On May 18, Frontier approached the regulatory authorities for clarification on OK Dollar’s licence. An official at the Central Bank said responses had been drafted to Frontier’s questions, but the deputy governor’s office had not given approval for them to be released.

Before he was replaced as deputy governor of the Central Bank last month, U Set Aung told Frontier on the sidelines of an event at the Thilawa Special Economic Zone that OK Dollar had applied for a licence before the Financial Institutions Law was enacted in January 2016. “I would say they [OK Dollar] are working to re-apply for a mobile financial services licence – that’s what I know,” he said.

He did not respond to multiple requests for further comment or clarification.

aw_cbbankkyawlynn2.jpg

Myanmar's mobile money regulations enable fintech companies to partner with banks to offer services to customers. (Ann Wang | Frontier)

The Financial Regulatory Department within the Ministry of Finance and Planning was more forthcoming. Three weeks after we sent our questions, acting director general U Myint Oo responded that Internet Wallet had an MFI licence and in October 2014 was granted approval to use a mobile payment system with its clients. As of May this year, it had 524 MFI clients, ministry figures showed.

The licence cannot be used to transact with OK Dollar customers who are not clients of its MFI, however.

“The Microfinance Supervisory Committee allows Internet Wallet to lend money, collect loan repayments and accept deposits using its mobile application [OK Dollar] – nothing else,” Myint Oo said.

“Internet Wallet has been informed that if OK Dollar wants to carry out mobile financial services, it must apply to the Central Bank of Myanmar in accordance with the rules and regulations. It is known that it has applied for a Mobile Financial Services licence,” he said.

But Myint Oo also seemed uncomfortable with Frontier’s interest in OK Dollar. On one of the many times when we asked about when we could expect responses to our questions, he suggested that Frontier may be pushing an agenda. “Why are you only investigating OK Dollar?” he asked. “Who are you connected to?”

Myint Oo’s suspicions are not necessarily misplaced. There are individuals, organisations and companies deeply unhappy that the Central Bank seems to be letting OK Dollar play by a different set of rules.

‘This industry is my baby’

Daw Pwint Phyu Htun’s love affair with telecommunications began in fifth grade, when her Ayeyarwady Region village got its first phone. She vividly recalls the many times when she and her sisters put on their best clothes to go to the switchboard and call their grandparents.

After the national uprising in 1988, Pwint Phyu Htun followed her mother to a refugee camp in Thailand and eventually resettled in Seattle, on the west coast of the United States. She had a job selling long-distance phone plans in a mall. On her breaks she was allowed to use the phone for free, and the homesick 18-year-old would call her relatives on the other side of the world. Inspired by the power of telecommunications, she studied to become an engineer and worked in the US telecoms industry developing new products.

When Pwint Phyu Htun made an unexpected visit to Myanmar in 2011, she was shocked by the cost of phones and the internet – SIM cards were selling for nearly US$1,000 each. The next year she began lobbying the Ministry of Communications to upgrade services in rural areas, which she believed were likely to be ignored by private companies when they rolled out infrastructure and services. Recognising that rural areas needed more than cheap calls, she also began lobbying the President’s Office to introduce mobile financial services. She became a consultant to the World Bank and eventually helped draft the MFS regulation enacted in March 2016.

“This industry is very much like my baby. I want all of the companies in the sector to succeed. I want the entire industry to grow and serve the urban and rural population,” she told Frontier.

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Daw Pwint Phyu Htun, a World Bank consultant who helped draft the Mobile Financial Services regulation. (Supplied)

Pwint Phyu Htun sees OK Dollar as a threat to everything she hopes mobile money can achieve in Myanmar. She describes it as a mobile-based hundi service – a reference to the informal, unregulated money transfer networks that have operated throughout Asia for centuries.

“When I saw the OK Dollar terms and conditions I was so shocked. They directly contradict almost every line in the CBM regulations – I know, because I drafted the MFS regulation,” she said.

“Consumer protection is a very important part of mobile financial services and I don’t see any consumer protection in the way that OK Dollar is providing services, starting with the fact that there is no Myanmar language equivalent of the terms and conditions when the customer is signing up, so he or she might not realise what they are even signing up for.

“I understand that the Central Bank is aware of the terms and conditions of OK Dollar which directly contradict the Central Bank’s regulations. I am not sure why OK Dollar is allowed to keep offering unauthorised mobile financial services.”

She says consumer awareness and trust are essential for the success of mobile financial services. One bad operator could set the industry back years, or cripple it completely.

“We’re entrusting these MFS providers with the money of the poorest populations and they are responsible for it. For me, this is not a game of get rich quick.”

Pwint Phyu Htun has a natural ally in Wave Money, which has an interest in both minimising competition and ensuring rival operators don’t damage the market. Wave Money’s chief executive, Mr Brad Jones, declined to discuss OK Dollar specifically, but told Frontier it was “of great concern” if companies were apparently operating without licences.

“When mobile money is at such an early stage in Myanmar, it is critical that all service providers comply with regulations and international best practice so that the industry can grow in a safe and compliant way,” he said.

“Our customer base is largely unbanked, with low trust in financial institutions. Our services need to apply the highest standard compliance.”

Mr Rene Meza, the chief executive of Ooredoo Myanmar, said the MFS regulation set high standards for operators, particularly on consumer protection.

“We welcome that level of scrutiny,” he said. “At the same time, it’s crucial that all providers offering mobile financial services are held to the same standards. A level playing field is essential and this new industry in Myanmar cannot afford a possible loss of trust in the market if any operator is not upholding the same high standards.”

“A properly regulated mobile money sector in Myanmar will empower the people of Myanmar and will be a key contributor to sustainable economic growth in the country.”

An issue of trust

Mobile financial services have the potential to transform economic activity in Myanmar. Although only 10 percent of the population is thought to have a bank account, there are about 50 million active SIMs, of which almost 80 percent have a smartphone and more than half are using data.

It’s no surprise that the sector has attracted its share of attention from potential investors, particularly since the MFS regulation was promulgated.

But relatively few people are using the available services. At the Mobile Money and Agent Banking Summit in Yangon in February, Mr Jacques Voogt from Ooredoo Myanmar presented research findings on methods used to transfer money.

Out of 1,000 people, just 20 – or two percent – used mobile banking. A similar proportion was using mobile money. Another 180 people, or 18 percent, transferred money through friends, and 60, or six percent, transferred money through the highway bus network. Banks remained the most widely used method, at 940 of the 1,000 people surveyed.

jtms_mobilebanking-02.jpg

A panel at a mobile money summit held earlier this year in Yangon. (Theint Mon Soe aka J | Frontier)

A major hurdle for mobile money operators is users’ lack of familiarity. Although most people use smartphones, they have acquired them relatively recently. Daw Win, 61, from Yangon, who bought her first smartphone a year ago, said, “I don’t believe this little phone can be used to transfer money. … I don’t dare to use it [for that] until now.”

Jones of Wave Money said such attitudes were natural given that mobile money was a new concept in Myanmar. “Like any new concept it takes time for the market to understand and use the product,” he said.

“We have invested heavily in educating customers about the benefits of mobile money, particularly on how fast and convenient it is.”

Another big obstacle for mobile money uptake is trust. Voogt’s presentation showed that just two percent of those surveyed trust mobile money and mobile banking, while 91 percent trust banks to remit money.

For some, this indicates a need to adopt a cautious approach, particularly in regulating players in the market. A bad experience for customers could deter them from mobile banking completely, and discourage others from even trying it – thus hindering the development of the banking and finance sector.

Avoiding a monopoly

Others, though, see OK Dollar as less a problem than a symptom of the real issue: the Central Bank’s regulation of the mobile financial services sector and, in particular, the bank’s reluctance to grant licences at all.

Frontier understands that many companies have sought an MFS licence since the March 2016 directive was enacted, but have been told not to bother because only applications from mobile phone operators were being considered.

“Powerful players could use their leverage” to get a licence, said one source, who asked not to be named due to the sensitivity of the issue. “Small players were just kept busy and were finally denied a licence.”

Mr Edwin Vanderbruggen, a partner at legal advisory firm, said that the MFS regulation was “created specifically with the telcos in mind”, but in the absence of a clear policy from the Central Bank it was difficult to know which other companies would be considered for licences. For example, the Central Bank might distinguish between Myanmar and foreign companies applying for licences.

“Maybe there simply is no policy yet,” Vanderbruggen said. “I think it is fair to say that the financial regulators, with their limited resources, struggle to cover the full width and breadth of their regulatory purview … [There are] so many legacy issues, so many new issues, with very few people to do it. It’s like pilots having to rebuild a rather old plane in mid-flight.”

The inability to get an MFS licence, though, has meant that those keen to enter the sector have instead been forced to partner with one of the domestic banks instead – generally a less attractive proposition than going it alone.

Sources said the management of the Central Bank was essentially strong-armed into enacting the MFS directive by international donors and that it never supported the concept of mobile banking that did not involve a licensed bank.

Mr Tim Scheffmann, the former chief executive of MyPay, said competition and innovation would be important for ensuring uptake of mobile financial services.

“The mobile money market in Myanmar is still at an early stage and more competition at this point of time would definitely help to provide a better service to Myanmar’s people,” he said.

However, Pwint Phyu Htun argues that as the industry develops it’s better to start with experienced, low-risk companies – and mobile operators fit the bill perfectly.

“[They] are experienced at setting up agent network. Mobile operators have a huge distribution network of 100,000 airtime sellers, small neighbourhood shops and big stores from around the country. These can be transformed to become human ATMs on every street corner offering cash-in/cash-out service to people of Myanmar,” she said.

One issue on which there seems to be agreement is the need for interoperability: the ability for users to send money between mobile financial services operators. If different platforms are unable to talk to each other, the usefulness of what they’re offering is limited. Imagine, for example, if your Ooredoo phone was unable to call a Telenor user, or you couldn’t transfer money from an account at KBZ Bank to one at CB Bank.

Scheffmann said it was essential for the development of the sector that the regulator enables interoperability between the different providers.

“Once you open up the market to interoperability, transactions increase,” Pwint Phyu Htun said. “In Myanmar, many people don’t understand that interoperability brings huge value. Openness is what’s going to get a lot more adoption.

“MFS can be a nation-building effort,” she said. “All of a sudden you’re going to be connecting the people in Tanintharyi, northern Shan, Rakhine – anywhere in the country … Telecoms and financial services are really a glue that brings all the people together.”

The fine print

Should OK Dollar be granted a licence, it will have to make some significant changes to the terms and conditions of service currently available only in English on its website.

The terms and conditions relieve OK Dollar of many of the responsibilities that the mobile financial services regulation imposes on licensed operations.

For example, OK Dollar reserves the right to discontinue its service, terminate accounts and retain the balance “if there are discrepancies or inaccuracies in any information or documentation provided to them”. Deposits must also be used within 185 days or “may be forfeited at our discretion”. Similarly, it “reserve[s] the right to suspend or discontinue the OK Dollar services at any time, for any reason or no reason”. However, under the MFS regulation, providers “shall, upon request by a MFS account holder, redeem, at any time and at par value, the money held in the MFS account”.

OK Dollar distances itself from the actions of its merchants and agents. The terms and conditions stipulate that users “assume any loss or liability” resulting from a reload or attempted reload, or withdrawal or attempted withdrawal. It also states that it is “not responsible for any acts or omissions of any third party including merchants, advance merchants, agents or any financial institutions” that use OK Dollar services.

But under section 9(a)(3) of the MFS regulation, a provider “is legally responsible for the actions of its agent to the extent that they relate to the conducting of MFS transactions and matters connected therewith”. Section 20, meanwhile, states that a provider “shall be responsible for monitoring and supervising the activities of their agents”.

The terms and conditions also exempt OK Dollar from liability for “any breach of privacy or unauthorized access to their customers personal information, transactions or any other customer information”. The MFS regulation states that each provider “and its agents and intermediaries if any, shall ensure privacy and confidentiality of customer information and data”.

The service also appears to breach transaction limits. Under the MFS, individual account holders can deposit up to K1 million and transfer up to K200,000 a day and K5 million a month.

However, OK Dollar allows individual customers to transfer up to K500,000 in a single transaction, and K1 million over three transactions.

The mobile financial services regulation also requires all customer deposits to be held at an approved commercial bank. Any interest derived from these deposits “shall be declared to the Central Bank on an annual basis and be utilised for the benefit of customers as approved by the Central Bank”.

TOP PHOTO: Theint Mon Soe aka J | Frontier

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mediafocus-blog1 · 7 years

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What is 'Finance'

New Post has been published on https://mediafocus.biz/what-is-finance/

What is 'Finance'

Finance describes the management, creation and study of cash, banking, credit, investments, assets and liabilities that make up financial systems, in addition to the observation of these financial gadgets. Some people choose to divide finance into 3 wonderful classes: public finance, corporate finance and personal finance. There is also these days emerging location of social finance. Additionally, the have a look at of behavioural finance goals to study the greater “human” facet of a science considered via maximum to be notably mathematical.

BREAKING DOWN ‘Finance’ Public finance includes tax systems, government costs, budget approaches, stabilisation coverage and instruments, debt problems and other government issues. Corporate finance includes dealing with belongings, liabilities, sales and debt for a commercial enterprise. Personal finance defines all monetary choices and sports of a character or household, which includes budgeting, coverage, mortgage planning, savings and retirement planning.

Public Finance The federal authorities enable save you marketplace failure by way of overseeing the allocation of assets, distribution of profits and stabilisation of the economic system. Regular funding for those packages is secured broadly speaking through taxation. Borrowing from banks, coverage businesses and other governments and incomes dividends from its organisations also help finance the federal government. State and neighbourhood governments also receive grants and aid from the federal government. In addition, person costs from ports, airport services and other centres; fines resulting from breaking legal guidelines; sales from licenses and prices, which includes for driving; and sales of government securities and bond troubles are also assets of public finance.

Corporate Finance Businesses obtain financing through a ramification of approach, ranging from equity investments to credit score arrangements. A firm may take out a mortgage from a financial institution, or arrange for a line of credit. Acquiring and managing debt properly can assist an organisation make bigger and ultimately come to be greater profitable.

Startups may acquire capital from angel traders or mission capitalists in trade for a percent of possession. If a business enterprise prospers and makes a decision to move public, it’s going to problem shares on a stock trade; such initial public services (IPO) bring an incredible influx of coins right into a firm. Established corporations may additionally sell extra shares, or problem company bonds to elevate money. Businesses may additionally purchase dividend-paying shares, blue-chip bonds or hobby-bearing financial institution certificates of deposit; they will even purchase different businesses so that it will improve revenue.

For example, in July 2016, newspaper publishing enterprise Gannett reported net income for the second one sector of $12.3 million, down seventy-seven% from $fifty-three.3 million at some point of the identical sector in 2015. However, because of acquisitions of North Jersey Media Group and Journal Media Group in 2015, Gannett stated extensively extra circulation numbers in 2016, ensuing in a 3% increase in general revenue to $748.Eight million for the second one area.

Personal Finance Personal economic making plans normally include studying a person’s or an own family’s cutting-edge monetary position, predicting brief-time period and long-term needs and executing a plan to satisfy the ones want inside man or woman monetary constraints. Personal finance is a completely personal hobby that depends largely on one’s income, residing necessities and character goals and goals.

Matters of private finance encompass, however, aren’t limited to, the shopping of economic merchandise for personal reasons, like credit playing cards, lifestyles, fitness and home insurance, mortgages and retirement merchandise. Personal banking is likewise taken into consideration a part of non-public finance, including checking and savings debts, together with IRAs and 401(ok) plans.

Among the maximum critical components of private finance are:

Assessing your modern-day economic status: anticipated cash float, current savings, etc. Buying coverage to shield you from risk and making sure your material status is at ease Calculating and filing taxes Savings and investments Retirement making plans As a specialised field, private finance is a fairly recent development, though styles of it have been taught in universities and colleges as “domestic economics” or “customer economics” since the early twentieth century. The subject becomes, to begin with, left out via male economists, as “domestic economics” seemed to be the purview of housewives. However, extra recently economists have time and again harassed massive schooling in matters of private finance as imperative to the macro performance of the overall country wide financial system.

Social Finance Social finance typically refers to investments made in social enterprises including charitable organisations and some cooperatives. Rather than an outright donation, these investments take the form of equity or debt financing, wherein the investor seeks each a monetary praise in addition to a social gain.

Modern sorts of social finance can also include a few segments of microfinance, especially loans to small business proprietors and entrepreneurs in less evolved nations to permit their enterprises to develop. Lenders assume to earn a return on their loans, further to assisting enhance the people’ fashionable of dwelling and to benefiting the local society and economy.

Social impact bonds (additionally referred to as Pay for Success Bonds or social gain bonds) are a specific type of tool that acts as an agreement with the public area or local government. Repayment and return on funding are contingent upon the achievement of sure social outcomes and achievements.

Is Finance an Art or a Science? The short answer to this query is “each.” Finance, as a subject of observing and a place of business, really has sturdy roots in related-clinical areas inclusive of facts and arithmetic. Furthermore, many current monetary theories resemble clinical or mathematical formulation. However, there’s no denying the fact that the economic enterprise also includes non-medical factors that liken it to an artwork. For instance, it has been located that human feelings (and selections made because of them) play a large function in lots of factors of the economic international.

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ibloggingkits-blog · 7 years

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New Post has been published on Blogging kits

New Post has been published on https://bloggingkits.org/reliance-capital-to-list-its-housing-finance-arm-in-h1-fy18/

Reliance Capital to list its housing finance arm in H1 FY'18

Reliance Capital plans to list its housing finance unit — Reliance Home Finance — at the bourses in the first 1/2 of the modern-day monetary, a flow expected to free up the cost for the existing shareholders of the firm.

“Reliance Domestic Finance could be indexed within the first half of-of the current monetary year (2017-18),” Reliance Capital Government Director Anmol Ambani said in his first earning name with buyers.

Reliance Capital, that is gift across insurance, mutual fund and a bunch of other economic services sectors, stated its core businesses have carried out double-digit boom in profitability in phrases of running overall performance over the past monetary.

“We assume each of our corporations to continue the fashion of worthwhile increase on a regular foundation,” he stated.

As on March 31, 2017, Reliance Capital’s corporate structure fully conforms to the guidelines for a middle Investment Agency repute, Ambani said.

As a part of the listing inspiration of Reliance Domestic Finance, forty-nine percent stake in the Corporation might be allotted to all shareholders of Reliance Capital inside the ratio of one percentage freed from the value in Reliance Home for every one share held in Reliance Capital.

Reliance Capital will preserve a 51 percentage stake in Reliance Home, and the Employer can be appropriately capitalized to grow the lending e-book multi-fold in the subsequent 18 months.

The thought is expected to unlock good sized cost for all existing shareholders and could gain almost 1,000,000 shareholders of Reliance Capital a good way to be getting one unfastened share of Reliance Home.

Reliance Home Finance, a one hundred per cent subsidiary of Reliance, provides a huge variety of loan answers like a Domestic loan, a mortgage against belongings, creation finance and cheap housing loans.

Reliance Mutual Fund NFO Reliance Mutual Fund is the most important asset control Agency of India. It is also one of the pinnacle fund groups of India. Furthermore, it is a part of Reliance Capital. RMF has introduced New Fund Offer. For the primary time, it has introduced a Small Cap fund. It has also decided to spend money on 65% of equity and fairness related groups and units. They’ll the increase percent even up to a hundred%. This NFO has two options. It has increase as well as dividend choice. traders can take care of the dividends in methods. It can be obtained as coins or may be reinvested.

Access and Go out Load:

As per the rules of Inventory Change Board of India, the Access load is nil. The Exit rule varies in line with the maintaining duration. If the preserving period is less than one year, then the Go out load is two%. If the maintaining length is more than twelve months and within 24 months, then the Exit load is 1%. After that, the burden is nil.

Special Facility:

The new fund Provide has a Unique vehicle switch facility. The traders can switch from Reliance Liquid Fund – Treasury Plan to this new fund. The performance of this new scheme might be benchmarked towards BSE Small Cap Index. The minimal Funding required is 5000 rupees. In addition, Funding may be in multiples of 1 rupee. There are three schemes in this Small Cap Fund category. The minimum Funding is 5000 rupees handiest for all of the 3 schemes.

Entrepreneurial Capitalism – Abilities Acquisition, Network Empowerment, and Microfinance What is the strategic hyperlink among abundant resources, human improvement, and financial development? What’s the essential and strategic connection among human capital and financial development? Why does income inequality persist regardless of the widespread monetary boom? What are a few certain paths to social mobility? What are some positive paths to the middle magnificence-the maximum essential stabilizing pressure in all societies? a few solutions to those nagging coverage questions loom huge and tell modern-day debates on prudent coverage alternatives to deal with the intractable trouble of high unemployment of graduates from institutions of higher learning in growing countries in trendy and in Sub-Saharan Africa especially.

A meta-analysis of extant academic literature suggests income inequality is chronic in both advanced and developing international locations no matter demonstrable and vast economic growth. There are many theoretical, structural and empirical reasons for the widening hole among go back to capital and hard work on one hand, and repayment to control and people on the other. As an instance, capital has a tendency to be more effective, greater cell and get hold of very favorable tax treatment than labor in many jurisdictions.

In addition, international opposition, innovation, slower productiveness increase, and marginal fee of technical substitution may be depressing wages even in developed countries. Moreover, the benefits of globalization preserve to accrue greater unevenly to particularly professional labor than to low skilled labor. In the end, durations of economic growth tend correlate with increasing income inequality because distinctive economic sectors as well as individuals do not grow on the identical tempo.

As we’ve already explained in many courses on this subject matter, human capital evaluation deals with acquired talents which can be developed via formal and casual education at faculty and at Domestic, and thru on the job training, revel in, and mobility and sturdiness inside the labor market. Please notice that nations as well as individuals are portfolios of different skills that derive from resources and skills. Many countries within the developing countries have masses of assets however lack talents-the capacity to position them to effective uses.

Honestly, mere possession of assets by myself is a essential but now not a sufficient situation for financial development. Purposeful human capital that manifests in improved productivity and innovation is the crucial and strategic hyperlink among resources and economic development. A initial analysis of macroeconomic statistics shows that the trouble of economic stagnation is not extraordinary to developing countries nor restrained there. Indeed, for decades in growing countries which includes Nigeria, huge percentage of all graduates from establishments of higher mastering are underemployed, have contract jobs with out a employment blessings or no jobs in any respect even after the Countrywide Service and certification.

Many labor market professionals and social observers are apt to factor to the evident lack of considered necessary expertise and employable Competencies in high call for. Even as this can be true, loss of Purposeful education that results in employment is most effective part of the trouble. There may be substantial and collecting empirical proof suggesting that a number of the employed university graduates in Nigeria go with out pay or normal repayment for prolonged durations of time and still others are on settlement employment with meager earnings and no employment advantages or guaranteed ongoing employment.

Before you postulate that Abilities acquisition is neither a panacea nor the fastest way to employment, please notice that employable knowledge and Competencies are important however no longer sufficient circumstance for social mobility. This explains in component why many graduates from Colleges of schooling and Technical Colleges in very high demand in tightening labor markets do not fare substantially better than the ones from Liberal Arts or even Business and Engineering Faculties.

Consequently, the reason of Competencies Acquisition projects adopted by the Okwelle Abilities Acquisition Middle (OSAC) is to help graduates and entrepreneurs take powerful steps toward Practical training, understanding and Talents acquisition, self-employment, self-reliance and monetary independence. As positive paths to the center class and upward social mobility, any knowledge and Abilties acquisition assignment must awareness on producing entrepreneurs-a crop of graduates with burning choice for self-employment, self-reliance and economic independence. The graduates ought to no longer most effective have requisite know-how and Talents in their unique exchange but must be marketers who’re Business savvy with demonstrable draw close of Business management understanding and Abilties. Please notice that each one marketers are Enterprise proprietors but not all Commercial enterprise owners are marketers.

entrepreneurs are Unique breed of Enterprise proprietors that anticipate every risk in pursuit of profit and monetary freedom. with out the entrepreneurial elegance different elements of manufacturing-land, hard work and capital along with generation stay dormant and are categorized in our profession-financial engineering as non-appearing property. As some professionals aptly put it, as soon as making a decision to work for yourself you in no way go returned running for a person else. Generally, people don not plan to fail, they definitely fail to plan. Additionally, freedom whether or not non secular, financial or political is indivisible and should be pursued relentlessly. The passionate power in the direction of financial freedom is the important difference that sets marketers aside.

The Okwelle Competencies Acquisition Middle Model:

The concept of Abilities Acquisition as a automobile for Network empowerment and development isn’t always new. The standards, concepts and challenges are properly hooked up inside the relevant academic literature. Please see a textbook on same topic for an entire ancient cartoon on Abilities Acquisition standards that knowledgeable many alternate Faculties and Technical Schools, Apprenticeship packages, and so on Earlier than the Nigerian Civil Conflict. The Okwelle Abilities Acquisition Center (OSAC) concept is centered on sensible and generation-oriented applications of have a look at.

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