Stan­chart, ADB to ex­tend more credit to Asian mi­cro­fi­nance in­sti­tu­tions

The Pak Banker - - COMPANIES/BOSS -

SIN­GA­PORE:

Stan­dard Char­tered Bank has an­nounced a col­lab­o­ra­tion with the Asian Devel­op­ment Bank to sup­port the growth of the mi­cro­fi­nance sec­tor in Asia. This re­gion-wide col­lab­o­ra­tion aims to im­prove ac­cess to fi­nan­cial ser­vices for the poor in ADB’s de­vel­op­ing mem­ber coun­tries (DMC’s).

Un­der this pro­gramme, Stan­dard Char­tered aims to orig­i­nate and ser­vice a US$150 mil­lion port­fo­lio of mi­cro­fi­nance in­sti­tu­tional loans across Asia. ADB will share the risk via a Risk Par­tic­i­pa­tion and Guar­an­tee pro­gramme on this port­fo­lio for up to US$75 mil­lion. This re­gional pro­gramme is in­tended to run till De­cem­ber 2018.

ADB’s sup­port will en­able Stan­dard Char­tered to ex­tend ad­di­tional credit to mi­cro­fi­nance in­sti­tu­tions that will in turn reach more un­banked in­di­vid­u­als and fi­nance ad­di­tional mi­cro en­ter­prises and liveli­hoods.

Com­ment­ing on this in­no­va­tive ini­tia­tive, Peter Hei­dinger, Global Head, Fi­nan­cial In­sti­tu­tions Group at Stan­dard Char­tered, said, “In­creas­ing ac­cess to fi­nan­cial ser­vices is core to the Bank’s ap­proach to sus­tain­able fi­nanc­ing. This part­ner­ship with ADB will un­lock more fund­ing for mi­cro­fi­nance and ex­tend sup­port to the sec­tor when it is re-emerg­ing from a dif­fi­cult eco­nomic cy­cle. We ex­pect this pro­gramme to ben­e­fit ap­prox­i­mately 30 mi­cro­fi­nance in­sti­tu­tions in Asia.”

Philip Erquiaga, Di­rec­tor Gen­eral of ADB’s Pri­vate Sec­tor Op­er­a­tions De­part­ment said, “Our com­mit­ment to devel­op­ment and poverty al­le­vi­a­tion takes cen­trestage in our long-term Strat­egy 2020. Mi­cro­fi­nance is a key el­e­ment, and this col­lab­o­ra­tion high­lights our com­mit­ment of pro­vid­ing ac­cess to fi­nance for the un­banked poor in ADB’s DMCs.”

Stan­dard Char­tered has been sup­port­ing the mi­cro­fi­nance sec­tor across Asia, Africa and the Mid­dle East since 2005. As of De­cem­ber 2012, the Bank has fi­nanced US$970 mil­lion to 73 mi­cro­fi­nance in­sti­tu­tion part­ners across 17 coun­tries, im­pact­ing the lives of 6.4 mil­lion peo­ple, the ma­jor­ity of whom are women.

Stan­dard Char­tered be­lieves that in­creas­ing ac­cess to fi­nan­cial ser­vices is key to build­ing sus­tain­able busi­nesses and that mi­cro­fi­nance is a com­mer­cial op­por­tu­nity that has the po­ten­tial to broaden fi­nan­cial and so­cial in­clu­sion. Across its mar­kets, the Bank pro­vides a va­ri­ety of prod­uct of­fer­ings, which in­cludes credit, trans­ac­tion bank­ing, risk man­age­ment prod­ucts and ac­cess to debt cap­i­tal mar­kets to all stake­hold­ers in the mi­cro­fi­nance in­dus­try.

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