Standard Chartered Bank (Pakistan) Limited, a subsidiary of UK-based Standard Chartered PLC, has closed a PKR 600 million (USD 6.95 million), two-year loan to Tameer Micro Finance Bank Limited, a licensed commercial bank that provides microfinance services in Pakistan. As of December 31, 2008, Tameer has total assets of USD 29.1 million, a gross loan portfolio of USD 11.5 million and 43,000 active borrowers.
The loan was made in partnership with the State Bank of Pakistan’s (SBP’s) Micro Finance Credit Guarantee Facility (MCGF), which was created in 2009 in an effort to incentivize wholesale lending to microfinance institutions (MFIs) through the provision of loan guarantees. MCGF was launched in 2009 with a grant of GBP 10 million (USD 16.2 million) from the UK Department for International Development (DFID.
Commenting on the loan from Standard Chartered to Tameer, SBP Governor Shahid H Kardar said, “I genuinely believe a partnership like this sets precedence for outreach to the un-banked population and enhance[s] one of SBP’s main objectives which is financial inclusion [1]”. Tameer CEO Nadeem Hussain stated, “One of the challenges facing this fast growing segment of the financial industry is long term committed funding. I hope that this transaction will set a precedent for other commercial banks to increase their exposure to eligible borrowers in the industry [1]”.
By: Alexandra Pattee, Research Associate
About Tameer Micro Finance Bank Limited (TMFB): Tameer Microfinance Bank Limited is a licensed commercial bank in Pakistan that provides microfinance services such as small business loans, group loans, emergency loans, micro mortgages, microinsurance, savings, deposits, and money transfer. The majority of Tameer is owned by Telenor Pakistan, a subsidiary of the Norwegian mobile communications company, Telenor. It was founded in 2005 and is based in Shahrah-e-Faisal. As of December 31, 2008, Tameer has total assets of USD 29.1 million, a gross loan portfolio of USD 11.5 million and 43,000 active borrowers.
About State Bank of Pakistan (SBP): Established in 1956, the State Bank of Pakistan (SBP) is the nation’s central banking authority. SBP performs the following primary functions: to regulate and supervise the nation’s financial system, to carry out monetary policy and to manage public debt. In addition, SBP performs the following non-traditional functions: to develop the financial framework of the country, to provide credit to priority sectors and to help in the Islamization of the banking system.
About Department for International Development (DfID): Department for International Development (DFID) is the department of the British government responsible for carrying out overseas development work. In fiscal year 2008/2009, the British government, through DFID, spent GBP 5.5 billion, the equivalent of over USD 8.3 billion, on international development. The major spending areas included government and civil society (25 percent), health (21 percent), economic growth (16 percent), education (14 percent), and humanitarian assistance (10 percent).
Sources and Resources:
[1] Standard Chartered Bank Press Release, “The largest ever bilateral Micro Finance Credit Guarantee Facility (MCGF) provided by Standard Chartered Bank (Pakistan) Limited”
MicroCapital.org Article, March 27, 2011, “CGAP Launches Islamic Microfinance Blog Series Featuring Finalists of Global Islamic Microfinance Challenge 2010: Al Amal of Yemen, Tanzania ecoVolunteerism, Bisma of Indonesia and Tameer, CWCD of Pakistan”, https://www.microcapital.org/microcapital-brief-cgap-launches-islamic-microfinance-blog-series-featuring-finalists-of-global-islamic-microfinance-challenge-2010-al-amal-of-yemen-tanzania-ecovolunteerism-bisma-of-indonesia-and/
MicroCapital.org Article, March 21, 2011, “State Bank of Pakistan (SBP) Announces Launch of $16m Financial Innovation Fund, Support for Mainstreaming Microfinance into Formal Banking System”, https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-announces-launch-of-16m-financial-innovation-fund-support-for-mainstreaming-microfinance-into-formal-banking-system/
MicroCapital.org Article, December 6, 2010, “Pakistan, Cambodia and Philippines Top Economic Intelligence Unit (EIU) Ranking of Microfinance Regulatory Frameworks”, https://www.microcapital.org/microcapital-brief-pakistan-cambodia-and-philippines-top-economic-intelligence-unit-eiu-ranking-of-microfinance-regulatory-frameworks/
MicroCapital.org Article, December 3, 2010, “State Bank of Pakistan (SBP) Increases Minimum Capital Requirement for Microfinance Banks”, https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-increases-minimum-capital-requirement-for-microfinance-banks/
MicroCapital.org Article, November 17, 2010, “State Bank of Pakistan (SBP) Aims to Ensure Sustainable Development of Microfinance Industry”, https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-aims-to-ensure-sustainable-development-of-microfinance-industry/
MicroCapital.org Article, August 23, 2010, “State Bank of Pakistan Devising New Microfinance Strategy, Focusing on Inclusiveness, Growth, Partnerships and Infrastructure”, https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-devising-new-microfinance-strategy-focusing-on-inclusiveness-growth-partnerships-and-infrastructure/
MicroCapital.org Article, June 1, 2009, “State Bank of Pakistan Adds Incentive to Micro Credit Guarantee Facility”, https://www.microcapital.org/microcapital-story-state-bank-of-pakistan-adds-incentive-to-micro-credit-guarantee-facility/
MicroCapital.org Article, December 18, 2007, “Tameer Microfinance Bank (TMFB) to Offer Customers Access to One-Link ATMs Throughout Pakistan”, https://www.microcapital.org/microcapital-story-tameer-microfinance-bank-tmfb-to-offer-customers-access-to-one-link-atms-throughout-pakistan/
MicroCapital’s Microfinance Universe: State Bank of Pakistan (SBP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=State+Bank+of+Pakistan+(SBP)
MicroCapital’s Microfinance Universe: Tameer Microfinance Bank (TMFB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tameer+Microfinance+Bank
MicroCapital’s Microfinance Universe: Department for International Development (DFID), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Department+for+International+Development+%28DFID%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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