MICROCAPITAL BRIEF: Italy’s Banca Etica, Cassa Padana, Federcasse Partner with Palestinian Government, Offer Microcredit in West Bank

Banca Etica, an Italian cooperative bank; Cassa Padana, an Italian cooperative lender; and Federcasse, a network of cooperative credit banks in Italy, have partnered with the Palestinian Monetary Authority (PMA), a public institution that regulates the banking industry in the Palestinian territories, and the Palestinian National Authority’s Finance Ministry to launch a three-year microcredit program in the West Bank. The program will aim to serve low-income women, youth and farmers. The Italian financial institutions will fund the program, which is officially entitled “Start-Up Palestine: Financial Instruments to Increase Employment and Income Generation in Palestine,”[1] in the amount of EUR 20 million (USD 21.3 million). The nature of the funding and the way it will be distributed have not been specified.

Davide La Cecilia, the Italian Consul General in Jerusalem, stated that the program will offer both financial and non-financial services to micro- and small enterprises (MSEs) as well as to “introduce alternative banking models, including credit and cooperative saving” [1] in the Palestinian territories.

As of 2014, Banca Etica had approximately USD 1.45 billion in total assets, return on assets (ROA) of .28% and return on equity (ROE) of 4.7% [2]. Financial information on Cassa Padana is unavailable. Federcasse has 371 member institutions as of 2015.

By Meredith Steih, Research Associate

Sources and Additional Information

About Banca Etica
Established in 1999, Banca Etica is a cooperative bank in Padua, Italy, that aims to serve “vulnerable clients” [3]. The savings deposited at the bank are used to finance organizations with missions related to “social cooperation; international cooperation, culture and environmental protection” [3]. As of 2014, Banca Etica had approximately USD 1.45 billion in total assets, return on assets (ROA) of .28% and return on equity (ROE) of 4.7% [2].

About Cassa Padana
Cassa Padana is a cooperative credit bank that was founded in 1893 in Leno, Italy. The bank is a member of the European Federation of Ethical and Alternative Banks and Financiers. Financial information on Cassa Padana is unavailable.

About Federcasse
Founded in 1909, Federcasse a national network of Cooperative Credit Banks (Banche di Credito Cooperativo) in Italy. Federcasse offers financial and technical assistance to its 371 member institutions in order to further their goal of improving their “moral, cultural and economic conditions” [4].

Sources and Additional Resources

[1] Ansa Med Article, http://www.ansamed.info/ansamed/en/news/sections/economics/2015/11/04/micro-credit-for-palestinians-begins-with-italian-help_847ae314-e449-4767-8bf0-c924ac6078ba.html

[2] Global Alliance for Banking on Values, http://www.gabv.org/our-banks/banca-popolare-etica

[3] Banca Etica, http://www.bancaetica.it/

[4] Federcasse, http://www.creditocooperativo.it/template/default.asp?i_menuID=42125

MicroCapital Universe Profile: Banca Etica 

MicroCapital Universe Profile: Cassa Padana

MicroCapital Universe Profile: Federcasse 

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