Boston, U.S.A. — The Council of Microfinance Equity Funds (CMEF), a membership organization of the leading microfinance equity investors, announced the release of a new, enhanced version of its corporate governance manual, “The Practice of Corporate Governance in Microfinance Institutions.”

Given the importance of good governance to the microfinance industry, the CMEF’s Governance Guidelines, first released in 2005, have recently been updated and expanded to include more in-depth discussions of social-performance management, risk and crisis management, responsible exits, aligning incentives and formal documentation.

“Good governance is the ability of board members to monitor the status of the organization, make good strategic decisions, and hold executives accountable for their execution,” said Elisabeth Rhyne, managing director of the Center for Financial Inclusion at Accion International. “Ultimately, that comes down to the quality of the board members, the culture and practice of the board and the power relationships among board members and executives.”

Experts acknowledge that the need for good governance has grown increasingly important for microfinance institutions (MFIs), especially in the wake of widespread financial crises. Microfinance consultant Daniel Rozas affirms in “Weathering the Storm,” a paper released by the Center for Financial Inclusion in 2011, that “Good governance is the ultimate backstop for crisis prevention and management.”

The CMEF Governance Guidelines are meant to provide candid, precise and practical guidance in the field of corporate governance specifically tailored to MFIs, and to offer concrete instruction to MFI boards. However, many of the recommendations in the guidelines, such as how to structure an effective board, are applicable to all types of financial institutions, MFIs have a number of distinguishing characteristics that affect the implementation and operation of governance.

The Governance Guidelines address how MFIs can best maintain a focus on social outcomes, and how MFIs in transition to private or deposit-taking institutions can develop ideal governance structures. Good governance is not automatic, and MFIs must continually work to develop good governance over time. The CMEF hopes that these Governance Guidelines will serve as a useful tool for MFIs in the development of good governance practices.

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Washington, U.S.A. –The Senate Commerce Committee held a hearing on S. 1832, the Marketplace Fairness Act, a bill that levels the playing field between brick-and-mortar and Internet-only retailers. The Senate hearing featured testimony by Sens. Mike Enzi (R-WY), Dick Durbin (D-IL) and Lamar Alexander (R-TN), and caps a month of intense activity on Capitol Hill as Democratic and Republican lawmakers work to close the sales tax loophole that enables online sellers to bypass collecting state sales taxes.

“We are very encouraged by the growing momentum in Congress to fix the outdated and blatantly unfair sales tax system that is hurting brick-and-mortar retailers across the country,” said Michael Kercheval, president and CEO of the International Council of Shopping Centers (ICSC). “Today’s Senate hearing demonstrates that Congress is serious about getting the federal government out of the way so that states can enforce their own tax laws,” added Kercheval.

“This system doesn’t work for consumers. It doesn’t work for businesses. And it sure doesn’t work for state and local governments,” said Senator Durbin. Senator Enzi dismissed claims that the bill is tantamount to a new tax. “The bill does not tax Internet services.  The bill does not raise taxes—it collects what is owed by the purchasing individual.”

“Critics of the legislation repeatedly claim that this constitutes a new tax for online retailers.  Nothing could be further from the truth, said Betsy Laird, ICSC senior vice president of global public policy. “It is not a new tax—taxes are already due on online purchases in 45 states.  Online retailers would merely be required to collect and remit sales taxes just like local brick-and-mortar stores do,” added Laird.

If enacted, the legislation will save consumers the burden of self-reporting use taxes. According to a recent national survey conducted by ICSC, 86% of consumers prefer to pay sales tax on online purchases at the point-of-purchase rather than at the end-of-year on their tax forms.

Both S. 1832, the Marketplace Fairness Act and H.R. 3179, the Marketplace Equity Act, do what the Supreme Court suggested was fitting for Congress to do—grant states the authority to compel sales tax collection on online purchases made by consumers in their state. It would end the competitive advantage pure e-retailers currently enjoy by not charging sales tax and improve the sales tax system to better reflect the realities of the 21st century marketplace.

ICSC has promoted sales tax fairness for over a decade, advocating that a “sale is a sale” regardless of whether the purchase takes place on Main Street, at shopping centers, via mail-order or over the Internet.

Image Courtesy of  nasa hq photo

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Amsterdam, Netherlands - Atradius, one of the leading global credit insurance companies anticipates an increase in insolvencies across most developed markets. The Eurozone led slowdown in global growth and the tight financing conditions make it more difficult for businesses to grow.

Uncertainty over the Eurozone sovereign debt crisis and development of the economy has increased tensions in financial markets, though the latter have eased since the ECB intervention of Euro 1 trillion.

A major issue is that credit conditions in advanced markets have been tight and have shown hardly any improvement since the financial crisis in 2008. The banking sector continues to consolidate its debts and seeks additional capital to comply with new and stricter regulations. This has created a challenging environment for households and firms, especially in the Eurozone, and, to a lesser extent, in the US.

Insolvencies rise

Atradius expects the number of insolvencies to increase across most European markets as those of the US improve, as discussed in the April 2012 Atradius Economic Outlook [http://global.atradius.com/creditmanagementknowledge/publications/economic-research.html].

Increases are expected to be the highest in Southern Europe, with forecasts of double-digit growth in Italy and Greece. The insolvency situation is expected to deteriorate somewhat, even in Germany, despite its relatively benign economic conditions. Better news is coming from the United States. With the country’s moderate growth, Atradius projects a decrease in insolvencies. But the forecasted number of insolvencies over the year remains high from an historical perspective.

Downside risks

In general, insolvencies tend to track the business cycle, with economic growth below trend pushing up insolvency numbers. Therefore, there continue to be downside risks to this scenario.

Firstly, an escalation of the Eurozone crisis would hit firms and governments across the globe through financial and trade linkages. In accordance with our analysis in January, Atradius still expects the Eurozone to stay intact as the costs of a break-up would be extensive.

Secondly, the risk of a steep increase in the price of oil, as spare capacity is limited and unrest in the Middle East is high. While the dependence on oil is declining, a large price increase over a short period would increase retail prices and hurt consumer spending across the globe.

Atradius chief-economist John Lorie commented; “Whereas the US is moving on relatively well, in the Eurozone the sovereign debt crisis has moved from the financial markets to firms and households. As consumer confidence is low we see consumers unwilling to spend and banks unwilling to provide finance to firms in the Eurozone. Rates of insolvencies are likely to go up in those markets. In the US on the other hand, rates are likely to improve.”

About Atradius

The Atradius Group provides trade credit insurance, surety and collections services worldwide. With a presence through 160 offices in 45 countries, it has a market share of approximately 31% of the global trade credit insurance market. Atradius has access to credit information on 100 million companies worldwide and makes more than 20,000 trade credit limit decisions daily. Its products help protect companies throughout the world from payment risks associated with selling products and services on credit.

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New York, U.S.A. – Bankrate.com’s monthly Financial Security Index hit a new high of 99.9 in April 2012, surpassing the previous high-water mark of 98.5 that was last recorded in May 2011 (the polls began in Dec. 2010). Americans’ attitudes regarding their net worth and overall financial situation also reached new highs this month. Sentiment regarding savings improved for a fifth consecutive month, and Americans’ comfort level with debt is at its highest point since June 2011.

Despite these positive developments, Americans are still wary of investing in stocks. The poll found that 76% of Americans are not more inclined to invest in the stock market despite near record low savings rates, and merely 18% of Americans are more inclined to invest in stocks today. Another soft spot is job security: 22% of Americans reported less job security than one year ago versus 20% that reported better job security.

“Overall, there are several positives that can be taken from this month’s report,” said Greg McBride, CFA, Bankrate.com’s senior financial analyst. “Americans are feeling better about the money they have in the bank and in their investment portfolios, and they’re also feeling better about what they owe. However, job security is still a pain point, and there are plenty of reasons to worry that we might be headed into a third straight weak summer for the economy. The trouble spots include jobs, high gas prices, the ongoing European debt crisis and more.”

A reading of 100 is considered the Financial Security Index’s baseline; any reading above 100 indicates improving financial security compared to one year ago, while any reading below 100 indicates decreasing financial security compared to last year.

Here are more details regarding the components of the Financial Security Index:

Overall Financial Situation

• Consumers’ feelings about their overall financial situation hit a new high, with 29% saying their overall financial situation is better today than it was 12 months ago, compared to 26% saying it is now worse.
• Those under age 50 are more likely to report a better overall financial situation, while those age 50 and up are more likely to report a worse financial situation than one year ago.

Net Worth

• With the stock market near four-year highs, more consumers report higher net worth compared to one year ago than at any time since polling began in Dec. 2010.
• Twenty-nine percent report higher net worth versus 23% that report lower net worth.
• Households with income of $50,000 or more are the most likely to report higher net worth than last year.

Savings

• The margin between those feeling worse about their savings and those feeling better about their savings has been nearly cut in half since Dec. 2011.
• Those under age 30 tend to be more comfortable with their savings, and those age 50 and up tend to be less comfortable with their savings compared to other age groups.

Debt

• Americans’ comfort level with debt is at its highest point since June 2011.
• More consumers report being more comfortable with their debt than less comfortable.
• Households with annual income of $50,000 or higher are more comfortable than other groups, while households with income under $30,000 are less comfortable.

Job Security

• Job security slipped following the disappointing March jobs report that was released on April 6.
• Only one in five (20%) Americans say they are more secure in their jobs compared to last year; 22% are less secure.

Investing in Stocks

• Those under age 30 are only slightly more inclined to invest in the stock market than the overall average (23% versus 18%), despite having the luxury of a long time horizon and having a greater burden of retirement savings than any previous generation.

The new study was conducted by Princeton Survey Research Associates International (PSRAI) and can be seen in its entirety here: http://www.bankrate.com/finance/consumer-index/financial-security-poll-0412.aspx.

The PSRAI April 2012 Omnibus Week 1 obtained telephone interviews with a nationally representative sample of 1,000 adults living in the continental United States. Telephone interviews were conducted by landline (600) and cell phone (400, including 191 without a landline phone). Interviews were done in English by Princeton Data Source from April 5-8, 2012.

Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.6 percentage points.

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As the FTSE 100 fell 5.5% last year, investors turned to spread betting [http://www.cityindex.co.uk/spread-betting] with the hope of gaining from the falling markets and this has continued in 2012.

As global stock indices fall, savvy investors saw an opportunity as they rushed to short sell stocks and indices in hope of profiting on these falls by spread betting on further misfortune.

Whilst today traders insist that there is money to be made from plummeting stocks as much as rising prices, in truth the tactic can still be somewhat difficult to get your head around, with many investors heads ingrained in the notion that you can only make money in a bull market.

Watching the Market

Only recently have investors been able to speculate more easily on shares, particularly those that are falling. With the arrival of innovative and accessible online trading tools [http://www.cityindex.co.uk/trading-platform/online-trading-platform.aspx] and real-time financial news and charts – speculating has opened up opportunities for ‘going short’ on the market.

Through City Index [http://www.cityindex.co.uk ], investors can access an online trading platform, allowing them to:

• Place trades securely from their computers 24 hours a day
• Access over 12,000 markets including global shares, indices, forex, commodities, bonds and options
• Instantly access real-time financial news and analysis feeds from Dow Jones Newswires
• Access the City Index interactive live charting package which includes a range of technical analysis tools
• Create multiple watch lists to monitor potential future trades

Going Short In a Bear Market

Because spread betting [http://www.cityindex.co.uk/spread-betting/spread-betting-features.aspx] allows you to profit in a falling market by going short and selling, it has proven to be incredibly popular for trading in a bear market, such as this.

If a spread bettor is able to interpret the signs and then react quickly enough, a falling bear market can be every bit as profitable as a rising bull market.

Joshua Raymond, Chief Market Strategist at City Index said “this is what makes spread betting so flexible. No matter which way the market is going, there is always the potential to make a gain.”

Alternatively, traders can open buy positions with the markets at what they perceive to be their lowest point to capitalise on the market recovering and profiting as prices rise.

Summary

Investors who see an opportunity to profit from a fall in global stock indices such as the Dow Jones index or FTSE 100, could profit from this by short selling these markets through spread betting. However, spread betting [Speculation: Spread Betting On the Falling Market to Profit appeared first on The Toonari Post - News, Powered by the People!.

Consumer interest and media attention spiked in mid-January 2012 when personal finance expert, Suze Orman, introduced a prepaid debit card with the potential to help improve credit scores.

In a unique pilot program, transactions on Orman’s cards are reported to TransUnion to determine if spending activity can be included in credit scoring.  Other celebrities including Russell Simmons, Alex Rodriguez and even the Kardashian sisters have sponsored cards, bringing broader awareness to consumers; but the question is: Are they right for you?

To shed some light on prepaid debit cards and help answer this question, InCharge Debt Solutions provides the following basic information on how these cards work, the pros and cons along with the three questions consumers should get answered before they sign up.  InCharge is a leading nonprofit organization that interacted with more than 1.1 million consumers in 2011 providing free credit counseling and personal financial literacy education.

“Prepaid debit cards certainly serve a purpose and offer many Americans financial opportunities and services for which they cannot otherwise qualify,” says Etta Money, president of InCharge.  “However, there certainly are some potential pitfalls and, if you’re not careful, negative financial consequences can result.”

What it is: A prepaid debit card is simply a reloadable card provided by a bank or other financial institution that allows you to only spend up to the amount you have pre-deposited into the account.  “Prepaid cardholders want total control of their money and to know in real time exactly what is spent, where, and how much money is left,” notes Kirsten Trusko, president of Network Branded Prepaid Card Association (NBPCA).

“These consumers are budget conscious and focus on their lowest cost option for the services they need, and they do so without traditional bank accounts, branches and paper.”

“A prepaid card can be a useful budgeting tool to segregate funds and enforce spending limits, to limit loss and fraud exposure when traveling, provide secure funds to children or for immigrants to remit money to relatives living in other countries,” advises Ben Woolsey, director of marketing for CreditCards.com.

The Pros and Cons: In today’s turbulent economy, a growing number of consumers are experiencing credit problems and prepaid debit cards help because they are much easier to qualify and/or pay for than traditional banking or credit accounts.  Other advantages include fraud liability protection; Visa/MC/Discover/Amex symbol enabling online transactions; cash from ATM machines; and less costly than check cashing services.

“On the down side, virtually all prepaid cards come with a myriad of fees,” cautions Woolsey.  “Some prepaid debit cards are clearly more consumer-friendly than others – charging very nominal monthly fees and function much like a virtual checking account.”

Additionally, disadvantages include: fees for loading money or using the card; more expensive than a checking account and when using an ATM at the host bank; and, very limited reporting to credit bureaus and not likely to help improve your credit like a traditional or secured credit card.

Three Questions to Answer: InCharge recommends that consumers get answers to these three questions before signing up for a prepaid debit card:

1.) Is it right for you?

“Contact the bank or financial institution of your choice and find out if you qualify for a bank account and debit card, and what costs are involved so you can compare,” says Money.

“Some parents use prepaid cards for their children so they can track expenses and limit spending amounts, so there are many things to consider when deciding if they are right for your situation.”  Trusko’s NBPCA has some great information and questions to ask yourself in order to make your decision at http://www.nbpca.org/Consumer-Corner.aspx.

2.) What are the cards features and costs?

“The best way to choose is to compare fees of the various cards in one place and understand if there is a cost to apply, receive the plastic, activate and/or to load,” recommends Woolsey.  “Annual or monthly fees can also be common but must be disclosed along with any other charges in the terms and conditions of the application.”  Once again, NBPCA has a tool that can help you compare which card is right for you at www.prepaid101.com.

3.) What should I know about these cards?

Before you make any decision on a new financial tool, take a little time to research it and make sure you understand important details and the pros and cons.

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The Frankfurt (Germany) stock market continues its downward slide. The DAX lost 3.9 percent in the afternoon at 5988 meters, while the MDAX emits 6.1 percent to 8575 points. The TecDAX lost 4.2 percent to 687 points.

The decline in recent days adds up to more than 17 percent. This is the biggest fall in prices since the turmoil following the bankruptcy of  the U.S.  investment bank Lehman Brothers in 2008.

In the morning it had temporarily looked like a recovery – the German benchmark index could make up for its opening losses and was for several minutes in the black. However, then the pessimists gained the upper hand again and the DAX slipped below 6000 points.

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