The China Development Bank (CDB), a state-owned lending institution, recently signed an agreement with the China Foundation for Poverty Alleviation (CFPA), a Chinese nonprofit organization, to support the foundation’s microcredit projects with a loan of CNY 1 billion (USD 160 million). Stating the commitment of CDB to microcredit, CDB President Zheng Zhije reported that in 2006 CDB was the first Chinese bank to grant a wholesale loan to CFPA. Since then, CDB has provided CNY 310 million (USD 49.6 million) in loans to CFPA’s microcredit and poverty relief projects.
CFPA’s Microfinance Group, which was established in 1996, has since been organized as CFPA Microfinance Management Ltd. CFPA microfinance provides microcredit loans as well training workshops encouraging sustainable development. According to the US-based nonprofit data provider Microfinance Information Exchange (MIX), CFPA held an aggregate gross loan portfolio of USD 105 million disbursed to approximately 106,491 borrowers and total assets of USD 126 million as of 2011.
By Chioma Okwudiafor, Research Associate
About China Development Bank
China Development Bank (CDB) is a state-owned lending institution that targets domestic development and also makes loans to rural communities abroad. Its goals are to facilitate the development of new rural communities, promote international cooperation, enhance people’s livelihoods through supporting sectors that have traditionally been faced with funding constraints and to promote coordination in regional development and the restructuring of key industries.
CDB has 36 branches throughout China and total assets of CNY 6252 billion (USD 1 trillion) as of 2011.
About China Foundation for Poverty Alleviation (CFPA)
The China Foundation for Poverty Alleviation (CFPA) was founded in March 1989. It is a nationwide non-governmental organization (NGO) that aims to alleviate poverty in China. It consists of 26 sub-divisions, with its headquarters in Beijing. CFPA employs 80 staff, whose areas of expertise include economics, agriculture, finance, social development and industrial and commercial management. According to the US-based nonprofit data provider Microfinance Information Exchange (MIX), CFPA held an aggregate gross loan portfolio of USD 105 million disbursed to approximately 106,491 borrowers and total assets of USD 126 million as of 2011.
Sources and Additional Resources:
Chinadaily.com Story: CDB promises record loans for poverty relief
http://www.chinadaily.com.cn/business/2012-10/18/content_15828387.htm
MicroCapital Universe Profile: China Development Bank
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=China+Development+Bank
MicroCapital Universe Profile: China Foundation for Poverty Alleviation (CFPA)
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=China+Foundation+for+Poverty+Alleviation
MicroCapital Story: January 17, 2007, China Development Bank Agrees to Provide the China Foundation of Poverty Alleviation USD 12.8 m in Funding for a Microcredit Scheme in China’s Rural Areas
https://www.microcapital.org/china-development-bank-agrees-to-provide-the-china-foundation-of-poverty-alleviation-usd-128-mn-in-funding-for-a-microcredit-scheme-in-chinas-rural-areas/
MicroCapital Story: September 25, 2012, MICROCAPITAL BRIEF: 190,000 Youth in Rural China Access $1.6b in Microcredit https://www.microcapital.org/microcapital-brief-190000-youth-in-rural-china-access-1-6b-in-microcredit/
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