Asian Development Bank (ADB) to Lend $20m to Chinese Banks to Support Microfinance Institutions in Rural China
The Asian Development Bank (ADB), a multilateral institution based in the Philippines, will provide a loan facility of CNY 130 million (USD 20.6 million) to unspecified partner banks to “help them build their wholesale lending capacity to microcredit companies” in central and western China . The loan facility will be available for four years . ADB is also working with the Chinese government to provide technical assistance and “build monitoring frameworks, ratings systems, and analytic capacity for these markets” .
As of 2010, the 14 microfinance institutions (MFIs) in China that report to the US-based nonprofit Microfinance Information Exchange (MIX) have aggregate deposits of USD 17.5 million, a gross loan portfolio of USD 14.1 billion with 2.4 million active borrowers.
By Brendan Millan, Research Associate
About Asian Development Bank (ADB): Established in 1966 and headquartered in Manila, the Philippines, ADB is a development finance institution that consists of sixty-seven members, of which forty-eight are located in the region. ADB has three strategic priorities: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, ADB uses loans, technical assistance programs, grants, equity investments and guarantees to private companies in member countries. ADB reported a total capitalization of USD 64 billion as of December 31, 2010.