Scotiabank, a Canada-based bank, reportedly expects to increase the number of microloans it extends to consumers and small businesses in Mexico, in amounts ranging from CAD 300 (USD 297) to CAD 3,000 (USD 2,970).
The loans are to be offered to clients of Credito Familiar, a consumer financing unit with 240 branches that Scotiabank acquired in 2011 from Banamex, a Mexican subsidiary of US-based financial service corporation Citigroup. Scotiabank reportedly expects the microcredit industry in Mexico to grow at a rate of 15 to 20 percent per year in the coming years.
Scotiabank began microlending in Peru in 2007 and has since expanded to Chile, the Dominican Republic, Guatemala, Jamaica and Uruguay. The bank reportedly holds a microloan portfolio of CAD 3 billion (USD 2.97 billion) as of October 31, 2012. Most of these loans are repaid in eight to 10 months, with a maximum term of two years. As of October 31, 2012, Scotiabank reported total assets of CAD 668 trillion (USD 662 trillion) and served approximately 19 million customers served in 55 countries.
By Charlotte Newman, Research Associate
About the Bank of Nova Scotia
Established in 1832, Bank of Nova Scotia (Scotiabank) is a Canada-based bank that provides a range of retail, commercial, corporate, investment and international banking services. As of October 31, 2010, Scotiabank reported total assets of USD 527 billion, return on assets of 0.82 percent and return on equity of 18.3 percent. The bank operates approximately 2,000 branches in 50 countries.
Sources and Additional Resources:
By Charlotte Newman, Research Associate
Sources and Additional Resources:
Bloomberg: “Scotiabank to Increase Small Loans in Mexico,” http://www.bloomberg.com/news/2013-01-18/scotiabank-to-increase-small-loans-in-mexico.html
Scottrade: “Scotiabank Acquires Credito Familiar from Financiero Banamex,” http://research.scottrade.com/qnr/Public/Markets/Article?dockey=100-339d1195-1
MicroCapital.org story, November 10, 2011, “MICROCAPITAL BRIEF: Scotia Group Regroups in Jamaica: New Microfinance Provider CreditScotia to Take Over Offices of Micro Enterprise Finance Limited (MEFL),” https://www.microcapital.org/microcapital-brief-scotia-group-regroups-in-jamaica-new-microfinance-provider-creditscotia-to-take-over-offices-of-micro-enterprise-finance-limited-mefl/
MicroCapital.org story, December 10, 2012, “MICROCAPITAL BRIEF: Te Creemos of Mexico First Microfinance Institution (MFI) in Mexico to Issue MasterCards, Plans to Reach 250,000 New Customers Over 3 Years,” https://www.microcapital.org/microcapital-brief-te-creemos-of-mexico-first-microfinance-institution-mfi-in-mexico-to-issue-mastecards-plans-to-reach-250000-new-customers-over-3-years/
MicroCapital Universe Profile: Bank of Nova Scotia
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+of+Nova+Scotia+%28Scotiabank%29
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