Important reforms are taking place today aiming to strengthen confidence and responsible practices in (micro) finance. However, financial authorities are not the only ones making efforts to build effective and complete frameworks to ensure responsible finance.
How far do microfinance funds expect their investments to go in changing lives? Are microfinance funds looking for specific changes in the lives of poor people or increased access to finance in a responsible way? And can we tell from the information they provide?
By market standards, the SKS IPO is a great success. Institutional investors have over-subscribed their allocations by 13 times, and the company’s valuation of USD 1.5 billion came in at the top end of the offer band price.
As the Indian microfinance sector responds to the Andhra Pradesh crisis, an opportunity has been created in India, as well as in the global sector, to reevaluate their “people practices” and make them a core part of a system that has provided a safety net for millions.
Over-indebtedness is as old as lending itself. A growing credit market will always bring about cases of client over-indebtedness. To put consumer protection measures in place is an essential part of good practice.