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2012 Annual Conference and the 1st African SPM Conference
from 24/09/2012 to 29/09/2012
Kampala (Uganda)
The Africa Microfinance Network (AFMIN) will organize its 11th Annual Conference
and the 1st African SPM Conference in Kampala, Uganda, from September 24th to 29th, 2012
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Citibank to push for shariah-compliant microfinance banks
July 6, 2010
Islamabad, July 06, 2010 (The News) - Citibank will push the idea of establishing Shariah-compliant microfinance banks for the needs of millions of Muslims, left financially excluded because of Islam’s prohibition on interest, a senior official said on Monday.
“There are large microfinance banks in Indonesia, Bangladesh, Pakistan, Morocco, Egypt and India where the strength of the Muslim population is greater. But interestingly none of them are Shariah-compliant,” said Global Director Citi Microfinance Robert A Annibale.
“If something has become an impediment between the people and microfinance banks, it should be addressed,” he said. “There are some industry people who fear that business will be politicised, but that should not be a matter of worry.”
Pakistan’s microfinance banks and institutions have grown tremendously in just a few years, he said. “Relatively, when you look at the number of un-banked people in the country, the 1.9 million borrowers of microfinance banks, looks impressive.”
He said microfinance banks are not facing much of a funding problem, but rather difficulties in raising equity to meet regulatory requirements. “The real task is the scale — the level of outreach.”
Annibale said microfinance banks could work with other organisations like post offices, grocers and even gas stations to sell a range of banking services to the poor. “This way they save a lot of money in terms of infrastructure costs.”
The State Bank of Pakistan’s (SBP) credit guarantee facility, which encourages commercial banks to lend to their microfinance counterparts, will work as a catalyst for growth, he added. “The funding will come into microfinance banks. It will come from pension funds and investors who have tried other venues for investment.”
About lack of quality human resource in the microfinance industry, he said microfinance banks are now attracting a lot of graduates from leading universities around the world. “These graduates see that conventional banks are not growing and want to try something else. But most importantly, they are socially conscious and want to contribute towards a better change.”
OTHER NEWS
- What the world can learn from the Indian microfinance crisis?
- Mauritanian youths launch microfinance fund
- Liberia : CBL Launches L$200m Loan Extension Assistance Facility
- Nigeria: Fortis Mobile Money signs MoU with NAMBLAG
- Careful New Review of Randomized Trials of Microfinance
- Gold Backed Loans: Unlocking Liquidity for the Poor?
- The SEEP Network and MIX Present A Conversation on Financial Inclusion in Africa with Audrey Lintho
- Nigeria: CBN Initiates Bills To Improve Payment System
- 137 Million of World’s Poorest Received a Microloan in 2010
- Press Release of 10th AFMIN Annual Conference
