Following up on MicroCapital’s review of the microfinance activities of French bank BNP Paribas earlier this month (from the findings of an ING Bank study), BNP Paribas will be lending EUR 6.6 million (USD 10.4 million) this year to ADIE (Association pour le droit à l’initiative économique), a microcredit association for start-up businesses in France and French territories who lack access to traditional finance. The bank will also seek to extend its international microfinance activities during 2008.
BNP Paribas has been involved with microcredit in France for 15 years; in 2006, it indirectly provided USD 5 million in financing to 1,400 projects through ADIE. It also worked with ADIE to make a three-year USD 2.5 million grant to Project Banlieue, which coaches micro-entrepreneurs. Overall, the bank has helped lend to microfinance institutions (MFIs) since 2002 and had USD 101 million in outstanding loans to 22 MFIs as of year-end 2007.
This latest announcement comes in the wake of another major microfinance-related action by a large French financial institution. In February, Crédit Agricole announced a EUR 50 million contribution to establish a microfinance-oriented non-profit foundation in collaboration with pioneering MFI Grameen Bank of Bangladesh.
BNP Paribas is the world’s fifth largest banking group, based on composite criteria used by Forbes magazine for its 2008 rankings. Its network spans 85 countries and employs 162,700 people. For the year 2007 (Financial Statements), its net banking income was EUR 31.0 billion (USD 45.7 billion) and its assets totaled EUR 1.7 trillion (USD 2.5 trillion).
ADIE was founded in 1989 by Maria Nowak to apply microcredit principles to the financially underserved in France. According to the Thomson Financial News article via Forbes, ADIE’s lending activity increased 30 percent in 2007 and had EUR 31 million (USD 45.7 million) in loans outstanding as of year-end.
By Stephen Son
Additional Resources:
MicroCapital.org article, April 7, 2008: “A Review of BNP Paribas’ Microfinance Activities and Outlook for Expansion”
Oanda: FX Converter
Forbes: “BNP Paribas expanding role as lender to microcredit providers”; “The Global 2000”
MicroCapital.org article, February 20, 2008: “Crédit Agricole Contributes €50m for the Creation of a Non-Profit Foundation in Cooperation with Grameen Bank of Bangladesh”
BNP Paribas: 2007 Financial Statements
ADIE: Qui sommes-nous? (French)
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