Bai Tushum and Partners, a microfinance institution (MFI) based in the Kyrgyz Republic, reportedly has received permission from the National Bank of the Kyrgyz Republic, the central bank of the country, to become a bank. Once the process is complete, the MFI will be called Microfinance Bank Bai Tushum and Partners. Bai Tushum plans to offer a full range of banking services in national and international currencies. The MFI also plans to increase the number of projects it implements to support “socially vulnerable” groups, including financing alternative energy sources, supporting female entrepreneurs and improving client living conditions. While it remains unclear what the transformation will allow Bai Tushum to do for the first time, some MFIs transform into banks to increase the types of investments that they may accept.
As of 2011, Bai Tushum reported total assets of USD 86.1 million, a gross loan portfolio of USD 55 million, return on equity (ROE) of 16.1 percent, return on assets (ROA) of 3.4 percent and approximately 35,000 borrowers. The MFI accepted USD 109,000 in deposits in the same year.
By Charlotte Newman, Research Associate
About Bai Tushum and Partners
Bai Tushum and Partners is a microfinance institution (MFI) based in the Kyrgyz Republic. Bai Tushum’s mission is to contribute to the economic development of the Kyrgyz Republic through the delivery of microfinance services that lead to increased employment and otherwise meet the interests of its clients and investors. Bai Tushum’s products include agriloans; trade, service, and production loans; mortgage loans; consumer loans; and equipment financing. As of 2011, Bai Tushum reported total assets of USD 86.1 million, a gross loan portfolio of USD 55 million, ROE of 16.1 percent, ROA of 3.4 percent and 35,428 active borrowers. The MFI accepted USD 109,000 in deposits in the same year.
About National Bank of the Kyrgyz Republic
The National Bank of the Kyrgyz Republic is the central bank of Kyrgyzstan. Its objective is to achieve and maintain pricing stability by means of monetary policy. The primary task is to maintain the purchasing power of the national currency as well as the safety and reliability of the banking and payment system of the republic.
Sources and Additional Resources:
PR Newswire: “Kyrgystan’s Leading Microfinance Institution, Bai Tushum, Becomes a Bank,” http://www.prnewswire.com/news-releases/kyrgyzstans-leading-microfinance-institution-bai-tushum-becomes-a-bank-172832061.html
MicroCapital.org story, June 26, 2012, “MICROCAPITAL BRIEF: Funds Managed by Incofin Loan $5m to FINCA Kyrgystan, Bai Tushum of Kyrgystan; Take 35% Stake in Unguka Bank of Rwanda,” https://www.microcapital.org/microcapital-brief-funds-managed-by-incofin-loan-5m-to-finca-kyrgyzstan-bai-tushum-of-kyrgyzstan-take-35-stake-in-unguka-bank-of-rwanda/
MicroCapital.org story, August 13, 2011, “MICROCAPITAL BRIEF: responsAbility Disburses $4m in Loans and Equity to Bai Tushum of Kyrgyz Republic; Arnur Credit, Bereke of Kazakhstan,” https://www.microcapital.org/microcapital-brief-responsability-disburses-4m-in-loans-and-equity-to-bai-tushum-of-kyrgyz-republic-arnur-credit-bereke-of-kazakhstan/
MicroCapital Universe Profile: Bai Tushum and Partners
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bai+Tushum+and+Partners
MicroCapital Universe Profile: National Bank of the Kyrgyz Republic
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Bank+of+the+Kyrgyz+Republic
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