Regional: REG: MICROFINANCE RISK PARTICIPATION PROGRAM
REG: MICROFINANCE RISK PARTICIPATION PROGRAM
Private Sector Operations Department
Request for information
|Project Name||REG: MICROFINANCE RISK PARTICIPATION PROGRAM|
|Borrower/Company||MFI RISK PARTICIPATION PROGRAM
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance / Inclusive finance
|Gender Equity and Mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Private Sector Financial Institutions Division|
|Responsible ADB Officer||Taneja, Anshukant|
|Description||REG: MICROFINANCE RISK PARTICIPATION PROGRAM|
|Objectives and Scope||The program supports the expansion of local currency lending to MFIs in ADB's DMCs, in turn providing an increase in the provision of financial services to the underserved poor population segment. This will help address the significant unmet demand for financial services, and provide additional funding for micro-borrowers.|
|Status of Development Objectives||On-going|
|Status of Operation/Construction||On-going. The program works so far with 10 partner financial institutions and has approved more than 30 microfinance institutions in ADB DMCs. See also www.adb.org/mfp.|
|Linkage to Country/Regional Strategy||Finance sector development is one of ADB's strategic priorities set forth in the Midterm Review of Strategy 2020. In its approach to inclusive economic growth, ADB will emphasize inclusive finance by improving and expanding access to finance for the low-income population and for micro, small, and medium-sized enterprises. The program is also in line with ADB's Private Sector Development Strategy, ADB Gender Equality and Women's Empowerment Operational Plan 2013-2020 as well as ADB's Financial Sector Operational Plan.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project is classified as financial intermediary and will be treated as category C for environment, involuntary resettlement, and indigenous people under ADB''s Safeguard Policy Statement (2009). Given the nature of microfinance operations, environmental impacts are expected to be negligible and no involuntary resettlement or impact on indigenous peoples are foreseen. ADB will determine the level of oversight required to verify compliance during the due diligence exercise conducted on each PFI and its MFI lending operations.|
|Involuntary Resettlement||see above.|
|Indigenous Peoples||see above.|
|Stakeholder Communication, Participation, and Consultation||Partner financial institutions conduct market research and seek feedback from existing and potential clients and staff to understand MFI needs.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||13 Sep 2010|
|Credit Committee Meeting||08 Nov 2010|
|Approval||13 Dec 2010|
|PDS Creation Date||29 Oct 2010|
|Last PDS Update||03 Apr 2020|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Microfinance Risk Participation and Guarantee Program - Additional Financing: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2017|
|Microfinance Risk Participation and Guarantee Program: Major Change and Additional Financing||Change in Scope, Amount, and Implementation Arrangements||Oct 2015|
|Proposed Microfinance Risk Participation Program||Reports and Recommendations of the President||Nov 2010|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Regional Microfinance Risk Participation and Guarantee ProgramAcross Asia and the Pacific, many microfinance institutions still struggle to obtain commercial finance to fund their growth. In response, ADB set up a program to bridge this gap, ensuring financial services reach the poor.
ADB and Citi Partner to Provide $100 Million for Microfinance in AsiaADB has entered into an agreement with Citi to expand local currency lending to the microfinance sector under the Microfinance Risk Participation and Guarantee Program.