As part of the technical committee of Smart Campaign Certification Task Force and Certifier licensed by Smart Campaign to conduct Client Protection Certification, MicroFinanza Rating has recently attended the first ever Certification Summit, held in Turin last week.
The purpose of the event was to bring together client protection certified MFIs and other microfinance experts to discuss with one another their experiences with certification and their practices to be aligned to the Seven Client Protection Principle.
Rating agencies have been confirmed as crucial actors for the entire process.
Read more about the Summit on the Center for Financial Inclusion Blog. Here the link to the article "Three Cheers for the Smart Campaign's Certification Summit" (Author: Anne H. Hastings, Manager, Microfinance CEO Working Group).
MicroFinanza Rating has finalized the first social rating standard of the Italian bank Emil Banca, which was awarded with a high A- (on a six rating scale: D, C, B, BB, A, AA), meaning "Good social performance management and client protection systems. High likelihood of achieving its social mission".
Emil Banca is a full-fledged cooperative bank supervised by the Bank of Italy. It is a small-scale bank with over 25K active borrowers (mainly SMEs) and €1,709 million Gross Loan Portfolio. Emil Banca has already participated to EU Jasmine program (Assessment plus TA facilities) and has borrowed € 3 million from the European Investment Fund to on-lend to microenterprises.
For further information on our Social Rating methodology, click here.
During the upcoming quarter, MicroFinanza Rating team will be visiting the following countries: Uganda, Rwanda, Camerron, Mexico, Ecuador, Bolivia, among others.
Follow us on LinkedIn for updates and important news from the microfinance sector.
The Risk Management Initiative in Microfinance (RIM) built a Risk Management Graduation Model (RMGM) a pathways-based, best practice standard for risk management in the microfinance sector and is now finalizing the diagnostic tool. Through a diagnostic process, MFIs can assess their current risk management systems, structures, and capabilities against the RMGM and determine their adherence to best practice risk management standards applicable to their institutional tier level.
RIM is a collaboration of organizations with a vested interest in raising the standards of risk management in the microfinance industry. It aims at contributing to the development of awareness, best practices, and appropriate standards for risk management in microfinance globally.
Read the Position Paper (March 2015): "Toward a Consistent and Appropriate Risk Management Framework for MFIs".
Author: Karla Brom (RIM).
Read the Technical Paper (July 2015): "Risk Management Graduation Model for Microfinance Institutions (MFIs)".
Authors: Giovanni Calvi Parisetti and Evrim Kirimkan.
Evrim Kirimkan is MFR's Regional Manager for Latin America and he has a great expertise in risk management in microfinance. Giovanni Calvi Parisetti has also worked for MFR and has been a key member for the development of MFR in Latin America.
Microfinanza Srl, represented by Massimo Vita, is a founding and active member of the RIM. Massimo, also active shareholder of MF Rating, is a Steering Committee and Technical Working Group member of the Initiative since inception.
MicroFinanza Rating is now participating in the first Certification Summit, a learning and networking event that is attended by currently-certified MFIs and takes place on July 30/31st in Turin.
The Summit aims at promoting discussion and sharing of best practices among certified organizations.
MicroFinanza Rating has been selected as consultant by the Kyrgyz Minister of Finance, KfW and European Investment Bank (EIB) within the framework of the initiative "Financial Sector Programme Value Chain Agro Finance" in Kyrgyzstan. Thanks to its expertise, MFR will be in charge of the screening and the selection of Partner Financial Institutions (PFIs) that will join the Programme.
MFR has prepared an evaluation scheme according to the programme's TOR and on the shortlisted PFIs will conduct due diligence assessments and recommend up to seven most promising PFIs to implement the Programme.
The project is a joint initiative of the Kyrgyz Ministry of Finance, KfW and EIB with the goal to enhance agri-food value chain competitiveness by increasing the availability of long-term finance in local currency (up to EUR 48 M) for agricultural equipment and machinery.
The kick-off meeting on launching the project is scheduled for the 30th of July 2015 in Bishkek, Kyrgyzstan. Further news will follow on the progress of the Agro Finance Programme, with more details about selected PFIs.
On July 6th MicroFinanza Rating carried out a Client Protection Workshop for CDC Group in London. As part of the technical committee of SMART Campaign Certification Task Force and Certifier licensed by SMART Campaign to conduct Client Protection Certification, MicroFinanza Rating was invited to train CDC investment analysts with the aim of enhancing their overall understanding of client protection principles, learning best practices and presenting and discussing specific case studies to stimulate the audience awareness. MFR was represented by Chiara Pescatori and Joris Crisà, both key experts in client protection.
CDC is the UK's Development Finance Institution (DFI), wholly owned by the UK Government. CDC's mission is to support the building of businesses throughout Africa and South Asia. CDC's portfolio of investments is valued at £3.4bn (EUR 4.7bn, year end 2014) and includes 1,331 investee businesses. CDC invests in a variety of sectors as construction, forestry and fishery, healthcare, heavy manufacturing as well as microfinance.
Find more on CDC Group here.
As Client Protection Certifier, licensed by the SMART Campaign, MicroFinanza Rating is happy to announce that a Certificate has been awarded to ASKI – Philippines . ASKI has demonstrated compliance with all the Certification standards derived from the seven client protection principles. The mission of ASKI is to promote socio-economic development through client-focused financial and non-financial services anchored on Christian principles.
As such, today ASKI operates through 72 branches throughout the country and serves 7,794 groups, with a total outreach of 136,224 people.
An awarding ceremony will be held tomorrow at the MCPI Conference.
ASKI's Client Protection Certification was implemented in the framework of a MoU signed between Opportunity International and MFR.
For further details on the Methodology used by MicroFinanza Rating, see the "SMART Certification" section of our website.
The purpose of this annual event is to be a meeting of minds, ideas and experience. The European Microfinance Network aims to achieve in-depth and interactive knowledge sharing among microfinance practitioners from both Europe and developing countries.
Our Executive Director Aldo Moauro participated to the panel discussion on the European Code of Good Conduct for Microcredit Provision, since MicroFinanza Rating is the leader of the international three-party consortium in charge of the compliance evaluation of the European Code of Good Conduct. According to the new Employment and Social Innovation (EaSI) regulation, implementing the EU Code of Conduct has become a pre-condition for accessing EU funds under EaSI Program: this workshop has represented the chance to know more about the implementation and evaluation process of the initiative.
Here are some pictures from the conference:
Find more on EMN Session and Output here.
As guest speaker MFR Executive Director Aldo Moauro will be participating in the panel discussion on the European Code of Good Conduct for Microcredit Provision, by focusing on the methodology and compliance assessment.
MicroFinanza Rating is the leader of an international three-party consortium in charge of the official evaluation of Compliance to the EU Code of Good Conduct, selected by the European Investment Bank (EIB) and EC DG Employment, Social Affairs and Inclusion.
The aim of the European Microfinance Network (EMN) Conference, carrying the title "Microfinance and banks: Are we the right partners?", is discussing the cooperation potential between traditional financial institutions and the microfinance sector so that collaboration and cohesion in reaching out to the underserved is enhanced between both sectors. The conference will take place in Dublin, from the 18th to the 19th of June.
For more information, please visit the EMN webpage.
As part of the SPTF Annual Meeting, MFR Executive Director will be panelist in the discussion on "Supporting regulators, networks, and financial institutions to respond to client complaints". The goal of the panel is to examine new insights into client behavior related to using complaints mechanisms and how regulators, networks, and financial institutions can encourage clients' rights. Lessons learned will be shared in complaints mechanism design and how partnerships among industry stakeholders can lead to better results for clients.
For more info on the Meeting, click here.
As active player in the African microfinance sector, MicroFinanza Rating will be participating in the second edition of the African Microfinance Week, carrying the theme "Accelerating Innovative Rural Finance in Africa" which takes place from June 29 to July 3, 2015, in Dakar, Senegal. The conference will be focusing on solutions to accelerate innovative financing in rural Africa as well as the challenges of rural exodus, food production and distribution, climate change and environmental protection. The initiative organized by the 4 regional networks (AMT, AFMIN, AFRACA and MAIN) representing 140 MFIs and 23 Microfinance associations and networks from all over Africa, ensures not only regional representation but also a continental coverage. The other participants are composed of investors, technical assistance providers, rating agencies as well as other actors from the African inclusive finance sector.
To learn more about the African Microfinance Week and its activities and how to register please visit its dedicated website: www.microfinance-africa.org