OPERATING LINES

The aim of the BBVA Microfinance Foundation is to help disseminate microfinance services among the population with fewest resources. By strengthening the capacity of the microfinance sector, its services could reach more people in better conditions. To this end, the Foundation has set up several operating lines, including the creation of a Microfinance Institution Network.

The key proposal of the BBVA Microfinance Foundation is to set up a network in Latin America and around the world that will be of significant size in a few years' time. For this purpose the Foundation buys institutions of this kind or creates other new institutions in collaboration with existing microfinance institutions (MFIs) that do not have a corporate structure, and it does so in full agreement with these organizations. In this way, the Foundation has major shareholdings, preferably majority ones, in all of these, adopting a responsible hands-on role in the control of the MFI.

Nowadays, the microfinance institutions that belong to or collaborate with the Network are: in Peru, Caja de Ahorro y Crédito Nuestra Gente; in Colombia, Banco de las Microfinanzas Bancamía, in Puerto Rico, The Corporación para las Microfinanzas-Puerto Rico, and in Chile, Servicios Microfinancieros S.A.

Moreover, the Foundation carries out other activities designed to develop the microfinance sector:

Promotion of Microfinances. The BBVA Microfinance Foundation carries out activities designed to raise awareness of microfinances. It therefore organizes and/or takes part in forums and events that disseminate the business of the microfinance sector; it earmarks part of its funds for the publication of reports and studies on microfinances; and it promotes information, analysis, training and technological innovation in the sector.

Partnership agreements. Within the spirit of collaboration that prevails in the Foundation's project, it sets up agreements with other organizations to boost and multiply the impact of its operations. In 2007, the Foundation signed three partnership agreements to promote microfinance activity:

  • Accenture Foundation: It collaborates with the Foundation in the operative model and of management of the Network, as well as in the definition of the code of good government of the Foundation.
  • Banco de Desarrollo Económico para Puerto Rico (BDE): The BDE and the Foundation have laid the foundations to create the Corporación para las Microfinanzas - Puerto Rico, the first institution to exist in Puerto Rico that is exclusively devoted to microfinance.
  • Inter-American Development Bank (IDB): The Foundation and IDB work together to disseminate financial services in Latin America through the promotion of microfinance institutions, the implementation of technological developments, and the pursuit of improvements within regulatory frameworks. These entities collaborate in the qualification of credit officers specialising in microfinance in ten countries, and to enhance good governance in microfinance institutions, for which a manual of good practices in corporate governance will be drawn up and distributed, and training will be provided for 500 members of steering committees from microfinance institutions in the region.
  • Bancrédito: The state bank of Costa Rica collaborated in to promote initiatives to boost access to credit and financial activities among the most disadvantaged sectors of Costa Rican society, as well as in Central America.
  • Enterprise Solutions to Poverty: Development of business and market.
  • Globocash Net: Development of technology of the communication satelital.
  • International Finance Corporation (IFC): the Foundation and the IFC work together in a joint investment program for microfinance institutions to promote the reinforcement and future development of the microfinance sector in Latin America. Management Solutions: the company collaborates of the definition in Platform of Risks for the operating environment of the Network’s microfinances. SUBIER ESTA AQUI
  • Management Solutions: The company collaborate in the development of the core banking & risks system.
  • Organización de Estados Iberoamericano (OEI): The Foundation and this entity collaborate to provide training and boost self employment among people living in situations of poverty in Colombia and Chile.
  • SAS: Collaboration in the development and unfolding of tools and systems of analysis for the Technological Platform.
  • Sun Microsystems / Oracle: Collaboration in technological infrastructures.
  • UNED/ Universidad del Pacífico (Perú) / Universidad Javeriana (Colombia) / Instituto de Estudios Bancarios (Chile): Specialists' massive formation in microfinance, with the obtaining of double qualifications on the part of both Universities.
  • University of Navarre: professors from this Spanish university have collaborated in supervising the drafting of the corporate governance code and code of conduct for the Network and the Foundation.