Microfinance Development Strategy of the Asian Development Bank

Once almost exclusively the domain of donors and experimental credit projects, institutional microfinance has evolved over the years into an industry with prospects for sustainable services and significant opportunities for expansion. ADB formulated its microfinance development strategy to harness this potential. The goal is to ensure permanent access to institutional financial services for a majority of poor and low-income households and their microenterprises. The strategy focuses on

1. creating a policy environment conducive to microfinance,
2. developing financial infrastructure,
3. building viable institutions,
4. supporting pro-poor innovations,
5. supporting social intermediation.

The strategy was formulated in consultation with more than 500 representatives of central banks, ministries of finance, commercial banks in the public and private sectors, cooperatives, nongovernment organizations, universities, and representatives of other funding agencies. In addition, views were obtained from external experts and organizations such as the World Bank, the Consultative Group to Assist the Poor, and a number of bilateral aid agencies (see www.adb.org/Documents/Policies/ Microfinance).