Bringing Microfinance Services to the Poor : Crediamigo in Brazil
Among policymakers and economists, there is a widely held perception that microenterprises1 face severe financing shortages that limit their growth opportunities. Resolving the problems of access to finance as well as the high cost of financing has...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2002/08/2512036/bringing-microfinance-services-poor-crediamigo-brazil http://hdl.handle.net/10986/10405 |
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okr-10986-104052021-04-23T14:02:50Z Bringing Microfinance Services to the Poor : Crediamigo in Brazil Sanchez, Susana M. Sirtaine, Sophie Valente, Rita MICROFINANCE INSTITUTION SERVICES POOR PEOPLE POLICYMAKERS ECONOMISTS MICROENTERPRISE FINANCE GOVERNMENT PROGRAMS FINANCIAL INSTITUTIONS SMALL ENTERPRISES NONGOVERNMENTAL ORGANIZATION PROFITABILITY LOANS BRANCHES COLLATERAL COMMITMENT COST OF FUNDS CREDIT LINES DEVELOPMENT BANKS EMPLOYMENT ENTREPRENEURS EXPANSION FINANCIAL INTERMEDIARIES FINANCIAL SERVICES FIXED ASSET INCOME DISTRIBUTION INFLATION INTEREST INCOME INTEREST PAYMENTS INTEREST RATES LENDERS LOAN LOAN LOSSES LOAN OFFICERS LOAN SIZE MANAGEMENT INFORMATION SYSTEMS MICROENTERPRISE MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE PROGRAMS MUNICIPALITIES NET PROFIT OUTREACH PRIVATE BANKS PRODUCTIVITY PROFITABILITY RISK MANAGEMENT SMALL ENTERPRISES SMALL LOANS SUBSIDIZED CREDIT SUSTAINABILITY SUSTAINABLE MICROFINANCE TRANSACTION COSTS WORKING CAPITAL Among policymakers and economists, there is a widely held perception that microenterprises1 face severe financing shortages that limit their growth opportunities. Resolving the problems of access to finance as well as the high cost of financing has become the main objective of many government programs. With a view to increasing access to credit for microenterprises in the Northeast Region of Brazil, the World Bank has supported Banco do Nordeste's CrediAmigo microfinance program since 1997. This note describes how Banco do Nordeste initiated CrediAmigo as part of its restructuring strategy and how the program has expanded to become the largest microfinance provider in Brazil. To date, many lessons have emerged, both from CrediAmigo and the World Bank project that supports the program. Brazilian private banks and non-bank financial institutions offer a variety of credit products targeted to micro and small enterprises. These products typically carry very high interest rates and require collateral. Banking networks also leave many areas, particularly poor and remote regions in the Northeast and North of Brazil, underserved. About 57 percent of all municipalities in these regions have no access to a bank branch, compared to a national average of around 30 percent. Although in many other Latin American countries, microfinance institutions have been able to partially fill the gap left by larger institutions, in Brazil, only a small fraction of the potential demand for microfinance appears to be satisfied by the current supply. 2012-08-13T11:22:17Z 2012-08-13T11:22:17Z 2002-08 http://documents.worldbank.org/curated/en/2002/08/2512036/bringing-microfinance-services-poor-crediamigo-brazil http://hdl.handle.net/10986/10405 English en breve; No. 7 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Latin America & Caribbean Brazil |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
MICROFINANCE INSTITUTION SERVICES POOR PEOPLE POLICYMAKERS ECONOMISTS MICROENTERPRISE FINANCE GOVERNMENT PROGRAMS FINANCIAL INSTITUTIONS SMALL ENTERPRISES NONGOVERNMENTAL ORGANIZATION PROFITABILITY LOANS BRANCHES COLLATERAL COMMITMENT COST OF FUNDS CREDIT LINES DEVELOPMENT BANKS EMPLOYMENT ENTREPRENEURS EXPANSION FINANCIAL INTERMEDIARIES FINANCIAL SERVICES FIXED ASSET INCOME DISTRIBUTION INFLATION INTEREST INCOME INTEREST PAYMENTS INTEREST RATES LENDERS LOAN LOAN LOSSES LOAN OFFICERS LOAN SIZE MANAGEMENT INFORMATION SYSTEMS MICROENTERPRISE MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE PROGRAMS MUNICIPALITIES NET PROFIT OUTREACH PRIVATE BANKS PRODUCTIVITY PROFITABILITY RISK MANAGEMENT SMALL ENTERPRISES SMALL LOANS SUBSIDIZED CREDIT SUSTAINABILITY SUSTAINABLE MICROFINANCE TRANSACTION COSTS WORKING CAPITAL |
| spellingShingle |
MICROFINANCE INSTITUTION SERVICES POOR PEOPLE POLICYMAKERS ECONOMISTS MICROENTERPRISE FINANCE GOVERNMENT PROGRAMS FINANCIAL INSTITUTIONS SMALL ENTERPRISES NONGOVERNMENTAL ORGANIZATION PROFITABILITY LOANS BRANCHES COLLATERAL COMMITMENT COST OF FUNDS CREDIT LINES DEVELOPMENT BANKS EMPLOYMENT ENTREPRENEURS EXPANSION FINANCIAL INTERMEDIARIES FINANCIAL SERVICES FIXED ASSET INCOME DISTRIBUTION INFLATION INTEREST INCOME INTEREST PAYMENTS INTEREST RATES LENDERS LOAN LOAN LOSSES LOAN OFFICERS LOAN SIZE MANAGEMENT INFORMATION SYSTEMS MICROENTERPRISE MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE PROGRAMS MUNICIPALITIES NET PROFIT OUTREACH PRIVATE BANKS PRODUCTIVITY PROFITABILITY RISK MANAGEMENT SMALL ENTERPRISES SMALL LOANS SUBSIDIZED CREDIT SUSTAINABILITY SUSTAINABLE MICROFINANCE TRANSACTION COSTS WORKING CAPITAL Sanchez, Susana M. Sirtaine, Sophie Valente, Rita Bringing Microfinance Services to the Poor : Crediamigo in Brazil |
| geographic_facet |
Latin America & Caribbean Brazil |
| relation |
en breve; No. 7 |
| description |
Among policymakers and economists, there
is a widely held perception that microenterprises1 face
severe financing shortages that limit their growth
opportunities. Resolving the problems of access to finance
as well as the high cost of financing has become the main
objective of many government programs. With a view to
increasing access to credit for microenterprises in the
Northeast Region of Brazil, the World Bank has supported
Banco do Nordeste's CrediAmigo microfinance program
since 1997. This note describes how Banco do Nordeste
initiated CrediAmigo as part of its restructuring strategy
and how the program has expanded to become the largest
microfinance provider in Brazil. To date, many lessons have
emerged, both from CrediAmigo and the World Bank project
that supports the program. Brazilian private banks and
non-bank financial institutions offer a variety of credit
products targeted to micro and small enterprises. These
products typically carry very high interest rates and
require collateral. Banking networks also leave many areas,
particularly poor and remote regions in the Northeast and
North of Brazil, underserved. About 57 percent of all
municipalities in these regions have no access to a bank
branch, compared to a national average of around 30 percent.
Although in many other Latin American countries,
microfinance institutions have been able to partially fill
the gap left by larger institutions, in Brazil, only a small
fraction of the potential demand for microfinance appears to
be satisfied by the current supply. |
| format |
Publications & Research :: Brief |
| author |
Sanchez, Susana M. Sirtaine, Sophie Valente, Rita |
| author_facet |
Sanchez, Susana M. Sirtaine, Sophie Valente, Rita |
| author_sort |
Sanchez, Susana M. |
| title |
Bringing Microfinance Services to the Poor : Crediamigo in Brazil |
| title_short |
Bringing Microfinance Services to the Poor : Crediamigo in Brazil |
| title_full |
Bringing Microfinance Services to the Poor : Crediamigo in Brazil |
| title_fullStr |
Bringing Microfinance Services to the Poor : Crediamigo in Brazil |
| title_full_unstemmed |
Bringing Microfinance Services to the Poor : Crediamigo in Brazil |
| title_sort |
bringing microfinance services to the poor : crediamigo in brazil |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2002/08/2512036/bringing-microfinance-services-poor-crediamigo-brazil http://hdl.handle.net/10986/10405 |
| _version_ |
1764412969105489920 |