Credit facilities


Microfinance extends microcredit and financial services to the estimated 2 billion working-age people at the BOP who are unbanked or who have no credit history.[1] Affordable credit opportunities offer low-risk microloans that can be combined with support from trusted loan advisors to enable the BOP to make informed financial decisions. Such programs make financial products and services more affordable for the BOP and help consumers build credit history. They can also empower BOP entrepreneurs, smallholder farmers, and producers by providing them with the financial services necessary to run a successful business.

Governments can encourage responsible microfinance programs and services by involving the private sector in the process of developing poverty reduction strategies, maintaining macroeconomic stability, and aligning the regulatory framework. The impact of these interventions will indeed depend on country-specific factors, such as market structure and maturity, governmental capacity, customer demand, and supervisory committees.  It is critical that the BOP’s financing needs are properly understood and that existing market penetration is effectively measured. Governments can leverage the existing network of regulatory agencies to expand coverage to low-income markets and to provide a more comprehensive assessment of the market and its risks. This can help policymakers avoid duplicative regulations and increase interoperability among market actors.

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Company Survey 2016

Brazil - Country Case Study on Inclusive Business

Policymakers have expressed interest in learning from peers that have already begun to support inclusive business. To support this request for knowledge-sharing, the G20 Global Platform on Inclusive Business developed a series of short pieces that examine the motivations, institutional coordination mechanisms, priorities and challenges that countries face as they support inclusive business.

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Itaú Unibanco: Banking the Unbanked in Brazil

Itaú Unibanco is the largest private bank in Brazil and one of the largest in Latin America. In 2011, it announced a microfinance operation aimed at micro-entrepreneurs in the metropolitan regions of Sao Paulo, Rio de Janeiro, and Porto Alegre. Its main goal is to address the needs of urban communities that lack access to formal banking with microfinance and microinsurance products.

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