ADB’s Microfinance Risk Participation and Guarantee Program facilitates local currency lending to the microfinance sector. ADB partners with international and domestic financial institutions to support MFIs. Microfinance institutions (MFIs) across Asia and the Pacific struggle to get commercial funding to provide financial services to their borrowers. Supporting microfinance institutions to ensure funds for low-income borrowers. Here are six ways ADB is using the power of microfinance to level the financial playing field for poor communities across the region: 1. In good times, microfinance helps families and small businesses to prosper, and at times of crisis it can help them cope and rebuild. It helps low-income households to stabilize their income flows and save for future needs. Microfinance can break down these barriers. Most formal financial institutions view them as high risk and high cost, as the transactions are often small and the clients in hard-to-reach locations. Rural women, low-income households, and the often tiny businesses they manage are all too often starved of finance in Asia and the Pacific. Microfinance expands access to credit especially for women.
Here are six ways ADB is using the power of microfinance to level the financial playing field for poor communities across the region.How microfinance is helping poor households and businesses survive and thrive.