Private Enterprise and Financial Markets > Micro, Small and Medium Enterprise
Micro Enterprise, Development Review Vol.9 No.2
By SDS/MSM (12/06, En, Es)
The Continent's Poor: A New Niche for Traditional Banks?
In the first article, Franciso José Abate-Franjul (Opprtunity International) describes how commercial banks are entering into the microfinance market. The article analyzes the cases of Mexico (BANORTE and Banco Azteca) and Brazil (BRADESCO and Lemon Bank), which show the viability of such entrance. Common elements of success are identified that might be applicable to commercial banks considering entering into the microfinance market. These elements include the firm commitment of management, a comprehensive knowledge of the market and use of appropriate financial technologies for each market niche.
Credit Guarantee Systems in Latin America: Taking Stock
In the second article, Juan Jose Llisterri (Inter-American Development Bank) takes stock of credit guarantee systems in Latin America. These systems back more than US$4.7 billion in loans to micro, small and medium enterprises. Regulation and supervision, professional management and the good economic performance of the region, have been key factors in the growth of these systems in the past several years. However, additionality to credit access has yet to be proven. This article examines the diverse experiences in eight countries, the results obtained and the factors that were critical for the growth of credit guarantee systems in these countries.
Last updated: 06/13/07
