BNP Paribas is Promoting Micro-Finance Projects
The French Bank is supporting isolated populations through micro-finance projects.June 23rd, 2016
Microfinance is very important to BNP Paribas and is a large part of the bank’s strategy as it supports projects that reach more 250,000 people in 17 different countries. These projects are implemented both in developed countries and also in emerging countries,but with certain provisions. These provisions are made in order to address the different needs of these countries efficiently.
The common upside of micro-finance, both in developed and emerging countries, is that it allows excluded populations to access credit to fund small projects that could prove themselves to be life changing. In emerging countries, the micro-credits range from 50 € to 5000 € and mostly reach already existing micro-companies and investment projects. Whereas in developed countries, it ranges from 2000 € to 20000 € and allows a financial inclusion for the beneficiary that usually is an unemployed person, a young person without any experiences or someone wanting to launch a start-up business.
In 2015, the micro-credits from BNP Paribas represented €213 million, which was granted to micro-finance institutions through other means of financing. The bank is doing this with a social purpose which focuses on the social impact of the projects and the excluded situation of the beneficiaries. In doing so, the bank’s micro-finance projects bring an adapted answer to the inability to access credit that touches the poorest and most isolated populations. Indeed, despite its low amount, the micro-credit has an high social impact as it, durably, improves the quality of life of the beneficiary in allowing him to initiate a lucrative activity.
The impact of the bank’s project is made possible as a result of the work done by the work of a lot of volunteers, who help dozens of NGOs all around the world and bring a strong added value to the supported projects. Indeed, the volunteers offer their skills at the service of the micro-finance institutions. In developed countries, they help the project carriers upstream, animate formations and offer juridic support. In emerging countries, especially in Africa and Asia, volunteers provide help for risk assessment, commercial strategy, measuring social and financial performance and with traduction and communication.
The vast majority of the projects led by BNP Paribas, help getting people getting out of their isolated situation, creating social links which brings people together including through transnational cooperation.
Cultural Diplomacy News
Pierre Even, CD News