Procredit Group
Encyclopedia
The Procredit Group consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. ProCredit's core business is the provision of credit and other banking services to very small, small and medium-sized enterprises and lower and middle income savers who have previously had limited access to formal financial services. Their business model is based on a form of socially responsible banking that seeks to be transparent, efficient and profitable on a sustainable basis.
The group claims to be committed to both social and commercial objectives. All 21 institutions are locally registered and most are regulated by the local banking supervisory agency - ProCredit Ghana operates as a savings and loan company, and ProCredit Mexico operates as a finance company while the banking licence application is being processed.
All subsidiary banks are also integrated into a worldwide group in which ideas and experience are exchanged and synergies are exploited. All these institutions adhere to a common, group-wide set of ethical, environmental and professional standards.
These features distinguish the ProCredit group from microfinance NGOs (non-governmental organisations). Lacking commercial criteria, such institutions tend not to be profitable and therefore not sustainable except through continued grants and donations. Their capacity for growth is typically limited, as so is their outreach. As a result, they usually remain quite small and localized.
ProCredit banks focus on providing financing for small and especially very small businesses. As of Dec 31, 2010 and according to ProCredit's operational statistics, more than 82 % of outstanding loans were for amounts of less than €10,000. The reason for this emphasis is that, according to ProCredit, small enterprises and family-run businesses are the most effective means of combating marginalization and poverty in the difficult economic environments. Such enterprises are supposed to be the engines of economic growth and thus provide much of the formal and informal employment in the countries of operation.
The core business of small business finance offers a platform for the provision of numerous other financial services, the most important of which is deposit facilities. As of Dec 31, 2010, ProCredit's deposit liabilities were equivalent to 88.4% of their gross loan portfolio. Domestic and international payments, card services, small home improvement loans and e-banking are other services that have generated strong demand from clients and in turn prompted ProCredit to offer a wider range of services and to achieve a broader outreach.
ProCredit banks view their mission as creating financial institutions for "ordinary people," similar to the historic role played in Germany by the savings banks (Sparkassen) and co-operative banks (Volksbanken). Therefor ProCredit refrain from issuing large-scale loans, promoting consumer lending, and from engaging in speculative activities. By maintaining simple, highly transparent and sustainable operations, the banks seek to build trust among ordinary people, creating confidence in institutions and in the local banking sector. ProCredit banks are typically seen as friendly and professional trendsetters in transparent and prudent banking.
The ProCredit group is led by ProCredit Holding AG, a holding company based in Frankfurt am Main, Germany. Founded in 1998 as "Internationale Micro Investitionen AG", ProCredit Holding is the majority shareholder in the group of 21 banks. Its purpose is to provide strategic guidance and management for these banks, which are growing rapidly. Its role includes support for refinancing, human resources, management information systems (MIS), auditing, controlling, marketing, retail operations, risk management, staff training, and the core business of lending.
Above all, ProCredit Holding invests in the training and professional development of the staff of the ProCredit group, since the sustained success of ProCredit's banks depends on the quality of their employees. Intensive training takes place locally in the individual banks, regionally at our three regional academies, and centrally at the ProCredit Academy in Germany. The ProCredit Academy provides a high quality three-year part-time training program for high-potential managers from all 21 banks around the world.
IPC GmbH
€ 41,109,000
21.2%
IPC Invest GmbH & Co KG
€ 17,384,000
9.0%
KFW
€ 31,589,000
16.3%
DOEN
€ 30,899,000
15.9%
IFC
€ 23,891,000
12.3%
BIO
€ 13,134,000
6.8%
FMO
€ 12,281,000
6.3%
TIAA CREF
€ 6,441,000
3.3%
responsAbility
€ 4,744,000
2.4%
Proparco
€ 4,545,000
2.3%
Fundasal
€ 4,452,000
2.3%
Omidyar-Tufts Microfinance Fund
3,789,000
2.0
Total Voting Capital
€ 194,259,000
100%
€ 16,635,000
53.7%
Omidyar-Tufts Microfinance Fund
€ 9,390,00
30.3%
responsAbility
€ 4,940,00
16.0%
Total Non-Voting Capital
€ 30,965,000
100%
The group claims to be committed to both social and commercial objectives. All 21 institutions are locally registered and most are regulated by the local banking supervisory agency - ProCredit Ghana operates as a savings and loan company, and ProCredit Mexico operates as a finance company while the banking licence application is being processed.
All subsidiary banks are also integrated into a worldwide group in which ideas and experience are exchanged and synergies are exploited. All these institutions adhere to a common, group-wide set of ethical, environmental and professional standards.
These features distinguish the ProCredit group from microfinance NGOs (non-governmental organisations). Lacking commercial criteria, such institutions tend not to be profitable and therefore not sustainable except through continued grants and donations. Their capacity for growth is typically limited, as so is their outreach. As a result, they usually remain quite small and localized.
ProCredit banks focus on providing financing for small and especially very small businesses. As of Dec 31, 2010 and according to ProCredit's operational statistics, more than 82 % of outstanding loans were for amounts of less than €10,000. The reason for this emphasis is that, according to ProCredit, small enterprises and family-run businesses are the most effective means of combating marginalization and poverty in the difficult economic environments. Such enterprises are supposed to be the engines of economic growth and thus provide much of the formal and informal employment in the countries of operation.
The core business of small business finance offers a platform for the provision of numerous other financial services, the most important of which is deposit facilities. As of Dec 31, 2010, ProCredit's deposit liabilities were equivalent to 88.4% of their gross loan portfolio. Domestic and international payments, card services, small home improvement loans and e-banking are other services that have generated strong demand from clients and in turn prompted ProCredit to offer a wider range of services and to achieve a broader outreach.
ProCredit banks view their mission as creating financial institutions for "ordinary people," similar to the historic role played in Germany by the savings banks (Sparkassen) and co-operative banks (Volksbanken). Therefor ProCredit refrain from issuing large-scale loans, promoting consumer lending, and from engaging in speculative activities. By maintaining simple, highly transparent and sustainable operations, the banks seek to build trust among ordinary people, creating confidence in institutions and in the local banking sector. ProCredit banks are typically seen as friendly and professional trendsetters in transparent and prudent banking.
The ProCredit group is led by ProCredit Holding AG, a holding company based in Frankfurt am Main, Germany. Founded in 1998 as "Internationale Micro Investitionen AG", ProCredit Holding is the majority shareholder in the group of 21 banks. Its purpose is to provide strategic guidance and management for these banks, which are growing rapidly. Its role includes support for refinancing, human resources, management information systems (MIS), auditing, controlling, marketing, retail operations, risk management, staff training, and the core business of lending.
Above all, ProCredit Holding invests in the training and professional development of the staff of the ProCredit group, since the sustained success of ProCredit's banks depends on the quality of their employees. Intensive training takes place locally in the individual banks, regionally at our three regional academies, and centrally at the ProCredit Academy in Germany. The ProCredit Academy provides a high quality three-year part-time training program for high-potential managers from all 21 banks around the world.
Latin America
- Banco Procredit, El SalvadorEl SalvadorEl Salvador or simply Salvador is the smallest and the most densely populated country in Central America. The country's capital city and largest city is San Salvador; Santa Ana and San Miguel are also important cultural and commercial centers in the country and in all of Central America...
- Banco Procredit, NicaraguaNicaraguaNicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...
- Banco Procredit, EcuadorEcuadorEcuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...
- Banco Los Andes Procredit, BoliviaBoliviaBolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
- Banco Procredit, HondurasHondurasHonduras is a republic in Central America. It was previously known as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize...
- Procredit Services, ColombiaColombiaColombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
- Procredit, MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
Africa
- Procredit, GhanaGhanaGhana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
- Procredit Bank, Democratic Republic of Congo
- NovoBanco, MozambiqueMozambiqueMozambique, officially the Republic of Mozambique , is a country in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest...
Eastern Europe
- Procredit Bank, ArmeniaArmeniaArmenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...
- Procredit Bank, BosniaBosnia and HerzegovinaBosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the...
- Procredit Bank, SerbiaSerbiaSerbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
- Procredit BankProcredit BankProcredit Bank is a member of the Procredit Group, which owns majority stakes in 19 countries on the continents of The Americas, Africa, and Europe. Procredit Bank is the name of several of the Group's banks in the Eastern European region.-External links:*...
, AlbaniaAlbaniaAlbania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea... - Procredit Bank, KosovoKosovoKosovo is a region in southeastern Europe. Part of the Ottoman Empire for more than five centuries, later the Autonomous Province of Kosovo and Metohija within Serbia...
- Procredit Bank, Republic of MacedoniaRepublic of MacedoniaMacedonia , officially the Republic of Macedonia , is a country located in the central Balkan peninsula in Southeast Europe. It is one of the successor states of the former Yugoslavia, from which it declared independence in 1991...
- Procredit Bank, BulgariaBulgariaBulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
- Procredit Bank, RomaniaRomaniaRomania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
- Procredit Bank, MoldovaMoldovaMoldova , officially the Republic of Moldova is a landlocked state in Eastern Europe, located between Romania to the West and Ukraine to the North, East and South. It declared itself an independent state with the same boundaries as the preceding Moldavian Soviet Socialist Republic in 1991, as part...
- Procredit Bank, UkraineUkraineUkraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
- Procredit Bank, GeorgiaGeorgia (country)Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
Voting shareholders
IPC GmbH
€ 41,109,000
21.2%
IPC Invest GmbH & Co KG
€ 17,384,000
9.0%
KFW
€ 31,589,000
16.3%
DOEN
€ 30,899,000
15.9%
IFC
€ 23,891,000
12.3%
BIO
€ 13,134,000
6.8%
FMO
€ 12,281,000
6.3%
TIAA CREF
€ 6,441,000
3.3%
responsAbility
€ 4,744,000
2.4%
Proparco
€ 4,545,000
2.3%
Fundasal
€ 4,452,000
2.3%
Omidyar-Tufts Microfinance Fund
3,789,000
2.0
Total Voting Capital
€ 194,259,000
100%
Non-voting shareholders
TIAA-CREF€ 16,635,000
53.7%
Omidyar-Tufts Microfinance Fund
€ 9,390,00
30.3%
responsAbility
€ 4,940,00
16.0%
Total Non-Voting Capital
€ 30,965,000
100%