MICROCAPITAL BRIEF: Central Bank of Brazil Launches Financial Inclusion Action Plan

The Central Bank of Brazil (BCB in Portuguese) reportedly has released an action plan that aims to strengthen the institutional environment of the National Partnership for Financial Inclusion (NPFI), which was launched in November 2011. The action plan aims to foster an institutional environment that promotes financial inclusion for Brazilians and is reportedly the result of a growing belief that financial inclusion complements financial sector development, economic growth and poverty alleviation. The launch of the action plan was held at Servico Brasileiro de Apoio as Micro e Pequenas Empresas (Sebrae), a Brazilian support network for micro- and small enterprises. Speakers at the event reportedly highlighted the importance of expanding financial services beyond microcredit and pointed to financial education as a key part of impact investment in the country. Further information on NPFI and the action plan is unavailable.

The 21 Brazilian microfinance institutions (MFIs) that reported 2011 data to the US-based nonprofit Microfinance Information Exchange (MIX) held an aggregate gross loan portfolio of USD 1.8 billion disbursed to approximately 2 million borrowers.

By Charlotte Newman, Research Associate

About Central Bank of Brazil
The Central Bank of Brazil (BCB in Portuguese) is the primary regulatory authority tasked with establishing the country’s monetary policy and supervising the country’s financial and macroeconomic policies. BCB has the legal authority to supervise microfinance institutions and credit unions. In 2004, BCB formed a national task force of government ministries called “Microcredit and Microfinances Inter-Ministry Team that coordinates the development of the microfinance sector.

Sources and Additional Resources:

CGAP (Consultative Group to Assist the Poor): “Brazil Launches Action Plan for Financial Inclusion Initiative,” http://technology.cgap.org/2012/05/22/brazil-launches-action-plan-for-financial-inclusion-initiative/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+cgaptechnology+%28CGAP+Technology+Blog%29

MicroCapital.org story, June 19, 2012, “MICROCAPITAL BRIEF: United Nations Environmental Programme (UNEP), Insurers Launch Global Insurance Principles at Rio+20, Brazil,” https://www.microcapital.org/microcapital-brief-united-nations-environment-programme-unep-insurers-launch-global-insurance-principles-at-rio20-brazil/

MicroCapital.org story, April 20, 2012, “MICROCAPITAL BRIEF: TIM Participacoes Launches Microinsurance through Text Messages in Brazil,” https://www.microcapital.org/microcapital-brief-tim-participacoes-launches-microinsurance-through-text-messages-in-brazil/

MicroCapital Universe Profile: Central Bank of Brazil
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Brazil+%28BCB%29

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