MICROCAPITAL STORY: The United Kingdom’s Co-Operative Bank Establishes USD 50 million Microfinance Fund

The Co-operative Bank is already part of the Global Commercial Microfinance Consortium (GCMC), which brings together institutional investors and development agencies in order to provide finance to poor people, and is now looking to build on that commitment with other similar organizations. The newly created fund will invest in new, structured/securitized microfinance senior debt funds. The Bank will control funds distribution and provide local currency financing for up to five years to Microfinance Institutions (MFI), which, in turn, provide credit to the self-employed poor, such as street vendors, traders, farmers and service providers. Targeted fund recipients will be similar in structure to the GCMC.

The Co-Operative Bank is part of Co-operative Financial Services (CFS). It is the name for the group of businesses that includes Co-operative Insurance (CIS), and The Co-operative Bank. Part of the Co-operative Group – the UK‘s largest consumer co-operative-it has some 6.5 million customers and an asset base of £40.7 billion (USD 82.6 billion) as of 2006. Part of their mission includes being committed to leading the way on ethical, environmental and community matters