Faculty of Economics and Business Administration Publications Database

Networks of Micro-Finance Banks: A Contribution to Financial Sector Development

von Pischke, J.D.
Volume: 16
Number: 1
Pages: 30 - 41
Month: March
Link External Source: Online Version
Year: 2005

This article follows on from one in 2001, which dealt with the emergence of a network of microenterprise banks. The German consulting firm IPC has been involved with setting up microenterprise banks 'from scratch', first in Latin America in the early 1990s, and then in south-east Europe, and most recently in Africa. This article describes how IPC formed the investment company, IMI, owned by private and public shareholders, and has made investments in 18 microenterprise banks in the last six years. It argues that having the same shareholders within IMI makes it easier to apply the same business model consistently across all the banks and to transfer knowledge and resources between the banks.