According to a March 2012 report, “A Billion to Gain: Dutch Contributions to the Microfinance Sector”, by the economic desk of Dutch ING Bank, the global microfinance market is expected to grow by four percent in 2012 reaching a total equivalent to USD 80.5 billion. Based on the report, Dutch companies account for eight percent of the global share of investment in the sector, although they tend to be under-represented in terms of investing in very poor African countries. The report was recently presented to Dutch Princess Máxima, United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development [1].
According to the report, the sector grew by five percent in 2011, compared with 50 percent growth in 2007, before the global economic downturn. The sector has also suffered from negative publicity associated with over-indebtedness in general, and specifically with suicides in India that some have linked to microfinance debts. The report estimates that 2.7 billion people still have no access to financial services although 190 million people worldwide have access to microfinance [1].
By Courtney Snelling, Research Associate
About ING (International Netherlands Group) Bank: The ING Group is a global financial institution that offers: retail banking, direct banking, commercial banking, investment banking, asset management and insurance services. ING Bank is a subsidiary of ING Group. In 2010, ING Bank held total assets of USD 1.23 trillion and a gross loan portfolio of USD 774 billion. The same year, ING Group held total assets of USD 1.64 trillion. [3]
Sources and Additional Resources:
[1] Ing.com, “A Billion to Gain”, http://www.ing.nl/Images/A_Billion_to_Gain_tcm7-104604.pdf
[2] Rnw.nl, March 6, 2012, “Microfinance Grows Despite Crisis”, http://www.rnw.nl/english/bulletin/microfinance-grows-despite-crisis
[3] Ing.com, “2010 Annual Report ING Bank N.V.”, http://www.ing.com/Our-Company/Investor-relations/Annual-Reports/Annual-Reports-Archive.htm
MicroCapital.org Article, February 4, 2011, “MICROCAPITAL SPECIAL REPORT: ‘Principles for Investors in Inclusive Finance’ Launched at Responsible Finance Forum in The Hague, Netherlands”, https://www.microcapital.org/microcapital-special-report-%e2%80%9cprincip…
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