ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
Established in 1966, it is owned by 68 members—49 from the region.
ORGANIZATION
ACCOUNTABILITY
ADB supports projects in developing member countries that create economic and development impact, delivered through both public and private sector operations, advisory services, and knowledge support.
Microfinance Program
A credit enhancement and risk-allocation tool, designed to promote local currency lending by commercial banks and financial institutions to microfinance institutions.
How the Program Works
Across Asia and the Pacific, many small entrepreneurs struggle to find loans for their businesses. Microfinance institutions (MFIs) are equally challenged in accessing commercial financing.
ADB, working with partner financial institutions (PFIs), launched its Microfinance Program (MFP) in 2010 to encourage international and local banks to increase their lending to MFIs.
Core Objectives
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Expand the risk appetite of PFIs by sharing the default risk on their MFI loans and increasing the flow of commercial financing for this sector
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Help MFIs access local currency loans, diversify funding options, and build long-term lending relationships with partner banks/financial institutions
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Help meet the financing needs of micro and small enterprises (MSEs)
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Make credit more accessible to women—99% of MFP's clients—for income generation, livelihood activities, and overall well-being (e.g. through micro-housing and education loans)
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Promote responsible lending practices and help build organizational capacity for MFIs
For Partner Finance Institutions
Coverage
Benefits
Eligibility Criteria
Our Partners
Program Highlights
From 2010 to 2022
$ 2.3 billion
new loans supported
$ 1.2 billion
cofinancing
10 million
borrowers supported,
approximately 98% are women
65
partner institutions across ADB DMCs
Your Questions Answered
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What is ADB's Microfinance Program (MFP)?
A credit enhancement and risk-allocation tool, designed to promote local currency lending by commercial banks and financial institutions to MFIs. Under the Program, ADB shares the default risk—usually up to 50%—on wholesale loans to MFIs extended by its partner financial institutions.
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What type of organisations are covered under the MFP?
MFP is working with regulated institutions that offer financing for individual micro-borrowers, financing for agriculture and farm-based activities, loans to MSEs in the informal sector, loans for micro-housing, and related activities.
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What types of partner financial institutions are considered for the Program?
ADB works with regulated commercial banks and financial institutions, including asset management companies, with established focus and track record in promoting financial inclusion and financing for achieving the Sustainable Development Goals.
What's New
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| Publications, Brochures and Flyers
Armenia's Microfinance Sector at a Glance
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| Publications, Reports
Measuring Progress on Women’s Financial Inclusion and Entrepreneurship in the Philippines: Results from a Micro, Small, and Medium-Sized Enterprise Survey
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| News Release
$300 Million ADB Loan to Boost Philippines’ Financial Inclusion Goals
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| News Releases, News from Country Offices
ADB Supports the Philippines' First Gender Bond Issued by ASA Philippines Foundation
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| News Releases, News from Country Offices
ADB, Invescore Sign $10 Million Loan to Boost MSME Growth in Mongolia
Contact
For inquiries, send an email to:
Anshukant Taneja (Mr)
Principal Investment Specialist
Melissa Jane Escurel (Ms)
Senior Investment Officer