The conference was attended by 200 practitioners, academics, policy makers and researchers, including 50 foreign participants from 22 countries representing Asia, Africa, Latin America and Europe. Eleven papers were presented in six business sessions. Participants from Bangladesh, Bolivia, Cambodia, Ethiopia, India, Mexico, Uganda, United Kingdom and Zambia presented papers in different sessions. The honourable Finance Minister Mr. Abul Maal Abdul Muhith, Dr. Atiur Rahman Governor of Bangladesh Bank and Chairman, MRA, and Mr. Chris Austin DFID Country Representative were present at the opening session. Speakers stressed that effective regulations for the microcredit sector was essential to ensure security of the savings of poor people and to ensure financial transparency of the Institutions. Sound regulations prevent irresponsible financial practices that have been witnessed in the recent past in developed markets. Speakers mentioned that the rural and urban poor benefit from the microfinance regulations which ensure reliable access to microfinance on fair and equitable terms. However, the relatively higher interest rates and charges/fees remain a persistent criticism of microfinance. Eleven papers were presented at the conference:
Eleven papers were presented at the conference (Click here to download):
1. Recent Trends in Microfinance Industry: Regulation, Supervision and the Principles of the Basel Committee (Mr. Gianfranco A. Vento)
2. Cambodia Microfinance: Development and Challenges (Mr. Kim Vada, Deputy Director, General National Bank of Cambodia)
3. “Microfinance Sector in India - Developing a Supportive Policy and Regulatory Framework and Environment - Position and Perspectives” (Biswa Bandhu Mohanty)
4. Microfinance Regulations in Bangladesh: Development & Experiences (Ms. Lila Rashid, Director, Microcredit Regulatory Authority)
5. Regulation of Microcredit in Bolivia (Eduardo Gutierrez Escobar)
6. Microfinance Regulation in Mexico: Lessons and Challenges Ahead (Juan Ramos Díaz)
7. Uganda’s Experience in Regulating Microfinance Deposit Taking Institutions (Governor, Bank of Uganda)
8. The Regulation of Microfinance in Zambia (Dr Chiara Chiumya)
9. Regulation & Supervision of Microfinance Business in Ethiopia: Achievements, Challenges & Prospects (Yigrem Kassa)
10. The NGO-MFI in Bangladesh: The Issue of Ownership and Governance (Professor Mahbubul Mokaddem, Department of Economic, Dhaka University)
11. Resource Mobilization by the MFIs in Bangladesh (Mr. Salauddin Ahmed Khan, Professor of Finance, Dhaka University).Speakers recommended that regulations should be dynamic and should address all the changes according to the need of the sector, MFIs and stakeholders. Speakers emphasized that regulation should be prepared or modified in a way that ensures a positive impact on the sector, financial sustainability of MFIs and builds confidence among the stakeholders. Regarding the modalities of supervision, off-site supervision instead of on-site supervision should be done on a regular basis to minimize the cost of supervision. Discussants commented that knowledge related to the price of microcredit should be disseminated even at the borrower level. A monitoring system should be introduced to monitor the effective interest rate of microcredit. It was also suggested that development of alternative leadership can be a way to ensure good governance of MFIs. Meanwhile, it should be remembered that the profit earned through microcredit should be used for social development. To assess the portfolio quality and performance of MFIs, a credit rating system should be introduced. A central database of microcredit and the Credit Information Bureau (CIB) should be developed for this sector. Cost reducing techniques should be promoted among MFIs. Dr. Mashiur Rahman, the honourable Adviser to Prime Minister on Economic Affairs was present in the closing session as Chief Guest. Nobel Laureate Prof. Muhammad Yunus, and Sir Fazle Hasan Abed, founder and Chairperson of BRAC were present as special guests at the closing ceremony. Professor Muhammad Yunus called on the microcredit regulators to come up with standardized interest rates for microfinance institutions to ensure greater transparency. He emphasized on the idea of introducing insurance schemes into microfinance programmes to protect the poor from disasters, and provide support to helpless and poor elderly women. He also proposed incorporation of technologies such as mobile phones into the microcredit sector to transfer money to the poor. Speakers said, Bangladesh, being the most matured country in microfinance operations, has a very special role to play in setting an example for the rest of the world in what can be accomplished through microcredit. A field trip to two Microfinance Institutions (MFIs) operating in Savar and Gazipur was also arranged for foreign participants.
