US-based financial services firm J.P. Morgan recently agreed to co-fund the Turkish operations of the Women in Business Programme of the UK-based European Bank for Reconstruction and Development (ERBD). Women in Business, which expanded to Turkey in 2014, supports micro-, small and medium-sized enterprises (MSMEs) operated by women in 18 countries. In Turkey, the support from J.P. Morgan will fund: (1) advisory services in areas such as energy efficiency, marketing and financial reporting; and (2) “a new digital platform or solution that will expand access to know-how and learning opportunities for MSMEs” as well as networking opportunities. To qualify, businesses in Turkey must have “fewer than 250 employees and less than EUR 50 million [USD 56 million] in annual turnover or…a balance sheet total of less than EUR 43 million [USD 48 million].”
J.P. Morgan is a unit of J.P. Morgan Chase and Company that offers services such as private, corporate and investment banking. US-based J.P. Morgan Chase is involved in investment banking, consumer financial services, small-business and commercial banking, financial transaction processing, asset management and private equity in 100 countries. It is listed on the New York Stock Exchange and was formed in 2000 when Chase Manhattan Bank merged with J.P. Morgan. As of 2019, the company reports total assets of USD 2.7 trillion, return on equity of 15 percent and return on assets of 1.3 percent.
Founded in 1991, EBRD seeks to support a “transition to open, market economies, whilst fostering sustainable and inclusive growth” in 38 countries in Central Asia, Eastern Europe and North Africa. It does this by providing business advice, supporting trade finance, and investing debt and equity in MSME funders. With a focus on “the promotion of private and entrepreneurial initiative,” the bank plans to disburse about EUR 8 billion (USD 8.6 billion) during 2020 to grow its portfolio to about EUR 48.5 billion (USD 52.4 billion). EBRD’s shareholders comprise 69 countries plus the European Union. Women in Business has administered credit lines totaling EUR 525 million (USD 593 million) for 70,000 women-operated SMEs as of 2020.
By Jessica McLeod, Research Associate
Sources and Additional Resources
EBRD news release
https://www.ebrd.com/news/2020/ebrd-and-jpmorgan-chase-foundation-to-support-small-businesses-in-turkey-.html
EBRD Women in Business Programme homepage
http://www.ebrdwomeninbusiness.com
J.P. Morgan homepage
https://www.jpmorgan.com
J.P. Morgan financials
https://www.jpmorganchase.com/corporate/investor-relations/document/annualreport-2019.pdf
EBRD homepage
https://www.ebrd.com
Previous MicroCapital article on EBRD
https://www.microcapital.org/microcapital-brief-garanti-bbva-of-turkey-borrows-699m-from-ebrd-ifc-commercial-banks-with-elements-for-renewable-energy-msmes-covid-19-relief/
Previous MicroCapital article on J.P. Morgan
https://www.microcapital.org/microfinance-publication-wrap-up-spotlight-on-the-market-the-impact-investor-study-by-yasemin-saltuk-ali-el-idrissi-published-by-j-p-morgan-global-social-finance-global-impact/
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