The Asian Development Bank (ADB), an international development organization based in Manila, Philippines, approved a Microfinance Risk Participation Program to increase microfinance lending in its member developing countries including Bangladesh, Indonesia, Sri Lanka, Thailand and Vietnam. The program will allow ADB to partner with financial institutions that lend to microfinance institutions (MFIs) by sharing the default risk of the loans that are made to the MFIs. ADB will accept up to fifty percent of the default risk of each loan, with the total exposure not exceeding USD 250 million. According to ADB, the Asian microfinance industry had an estimated 47 million borrowers at the end of 2008 with loans totaling over USD 10 billion. ADB reported a total capitalization of USD 56 billion as of December 31, 2009 [1].
By Julie Moksim, Research Associate
About the Asian Development Bank (ADB): Established in 1966 and headquartered in Manila, Philippines, ADB is a regional development bank that consists of sixty-seven members, of which forty-eight are located in the region. ADB has three strategic agendas: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, ADB uses loans, technical assistance programs, grants and direct assistance in the form of equity investments, guarantees and credit to private companies in member countries. ADB reported a total capitalization of USD 56 billion as of December 31, 2009.
[1] Asian Development Bank (ADB): “ADB $250 Million Risk Program to Help Expand Microfinance to the Poor”, http://www.adb.org/Media/Articles/2010/13434-asian-microfinance-programs/
MicroCapital’s Microfinance Universe Profile: Asian Development Bank (ADB)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asian+Development+Bank+(ADB)
MicroCapital.org Article, December 17, 2010: Asian Development Bank Invests in Microfinance through $10m Equity Placement in Shorecap II Fund, https://www.microcapital.org/microcapital-brief-asian-development-bank-invests-in-microfinance-through-10m-equity-placement-in-shorecap-ii-fund/
Browse the MicroCapital Universe and add your entry to the wiki at:
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