Banking with the Poor Network (BWTP Network) is Asias microfinance network. It is a non-profit regional association of a diverse range of microfinance stakeholders committed to improving the quality of life of the poor through promoting and facilitating their access to sustainable financial services.
The BWTP Network is an initiative of the Foundation for Development Cooperation and its Secretariat is based in Singapore. The Foundation is an independent, non-profit organisation based in Brisbane, Australia, whose aim is to strengthen international cooperation and development, especially in the Asia-Pacific region. The Banking with the Poor project is aimed at exploring, demonstrating and publicising the potential for increased access to credit for the poor on a sound commercial basis. The essence of Banking with the Poor is to establish linkages between commercial banks on the one hand, and non-government organisations (NGOs) and self-help groups (SHGs) of the poor on the other. The BWTP Network consists of national policy institutions, commercial banks and NGOs from Asian countries, all committed to linking microfinance with the financial system.
–BWTP microfinance providers in Cambodia
- ACLEDA Bank
- AMRET
- Angkor Mikroheranhvatho (Kampuchea) Co. Ltd (AMK)
- Cambodian Community Savings Federation (CCSF)
- Cambodian Entrepreneur Building Limited (CEB)
- Cambodia Rural Economic Development Initiatives for Transformation (CREDIT)
- Hattha Kaksekar Limited (HKL)
- PRASAC Microfinance Institution Limited
- Thaneakea Phum (Cambodia) Ltd
- VisionFund Cambodia Limited
- Rural Development Bank
- National Bank of Cambodia
CEB, one of Banking with the Poor network providers, is a leading microfinance institutions in Cambodia (in 2004).
–Aims
CEB's mission is to build entrepreneurship and empower poor women, through supporting their income-generating activities and microenterprises.
–History
CEB was established as a NGO in 1995, under the name of Cambodia Community Building (CCB), to offer financial and health education services to poor communities. In collaboration with World Relief, CCB pursued an integrated microfinance approach, combining financial services (village banking) with free health education services. In 1999, CCB decided to adopt a more minimalist approach, centered on financial services, in order to transform into a self-sufficient MFI. It also shifted from a village banking methodology to a mix of individual and group lending. In February 2003, CEB registered with the Ministry of Commerce as a private limited company, and obtained a licence from the National Bank of Cambodia in April 2003.
–Methodology
CEB offers financial services to both individuals and groups. Group financial services include lending through groups where poor women in a local community form solidarity groups of 2 - 8 members. Solidarity group loans ranges between US$100 and US$500, where women members in each group serve as guarantors for each other. A collateral, usually in the form of a land or a market stall deed, is requested from each group member. Loans are issued either in US dollars or the Cambodian Riel.
Individual financial services include individual loans catering typically for poor women successfully managing micro-businesses. These loans range from US$300 to US$5,000. Loan appraisal includes a simple, but sound business plan and a visit to the business premise by the credit officers. The vast majority of individual loans are issued in US dollar and are often used for business expansion, capital equipment purchases, such as agricultural machinery, office equipment and so on. A collateral in terms of fixed assets (mortgages and movable assets, i.e. livestock) with a value of 200% of the loan account, and guarantee from household members are required. Both group and individual loans comes with compulsory savings of 5% of the loan amount. Voluntary savings products are being introduced.
CEB works mostly in urban settings, and does not benefit from external expertise or subsidies. Active clients amount is 8 293, of which 100% women (October 2004). Repayment rate is 99 %. CEB operates from 14 offices located in 5 provinces, reaching more than 500 villages.
–Financing
CEB is a licensed MFI, regulated by the National Bank of Cambodia. It access funding from the Rural Development Bank, and international funds and donors (IFAD, ADB, Triodos, Oikocredit, Blueorchard, ShoreCap, etc). CEB is owned by CCB NGO (45%) and CEB Employee Company (11%), while ShoreCap International took a 43% share in November 2004.
–Reference], retrived April 20, 2010
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