At BNP Paribas, we believe that microfinance will never be a business like any other because it gives meaning to our work and enables us to exercise our core business in a way that is valuable to society by helping those who help themselves and who are creating new businesses.

Emmanuel de Lutzel, Responsable de l’activité Microfinance

 

BNP Paribas’ involvement in microfinance, which dates back over 18 years, is based on the conviction that banking can have a significant and positive social impact. This involvement encompasses three key areas:

  • Support for microfinance institutions (MFIs) in Europe and developing countries
  • Microfinance investment products
  • Voluntary provision of skills

 

The Specifics

Financing an MFI in a developing country is an activity based on a social enterprise model that seeks to maximise its social impact while operating on a financially sustainable basis. The central activity is refinancing the debt held by the MFI in local currency. In June 2011, this activity included 24 partner institutions in 13 countries in Africa, Asia and Latin America. The 45 million euros committed to these operations have made it possible to fund 91,000 borrowers and has had an indirect impact on more than 450,000 people.

At the European level, the activity is based on four partnerships:

  • In France, the BNP Paribas Group has supported Adie for nearly 20 years, both at the philanthropic level and as a banker
     
  • In Belgium, the collaboration between Fortis, Adie and the European Investment Fund led to the creation of Microstart in 2011
     
  • In the UK, BNP Paribas and another major French bank granted a syndicated credit facility of £ 1 million to Fair Finance, a company that provides microloans in East London
     
  • In Italy in late 2011, BNL, BNP Paribas’ Italian retail bank, took an equity stake in PerMicro, the first microfinance institution in Italy

 

Did You Know?

The Group's employees contribute to microfinance through two not-for-profit associations: MFSF and BCS.

MicroFinance Sans Frontières (MFSF) provides professional expertise to MFIs in developing countries on a voluntary basis. The association has more than 250 volunteers who have completed over 70 missions.

Bénévolat de compétences et Solidarité (BCS – Voluntary provision of skills and Solidarity) provides support through volunteers, both employed and retired, to associations operating it two fields: social finance and aid to disadvantaged children. It has connected 150 volunteers with partner associations.

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