Standard Chartered Bank (SCB), a UK-based financial services company, recently announced that it will disburse a loan of IDR 57 billion (USD 5.74 million) to Bank Andara, an Indonesian commercial institution that provides wholesale services to microfinance institutions (MFIs) and savings services to individuals. According to Bank Andara President Director David H L Yong, the loan “will be used mostly to improve the distribution of lending to MFIs” in Indonesia. [1]
Bank Andara, along with its seven major shareholders, seeks to increase outreach to Indonesians lacking access to the financial sector. As of 2012, Bank Andara reported total assets of IDR 1.22 trillion (USD 125 million), a gross loan portfolio of IDR 980 billion (USD 102 million), return on assets of -0.33 percent, return on equity of -1.77 percent and 745,000 depositors. For the year 2012, SCB reported total assets of USD 637 billion and return on equity of 12.8 percent and since its inception has financed USD 1 billion to various MFIs in Asia and Africa.
By Michael Averell, Research Associate
About Bank Andara
Founded in 2008, Bank Andara is a microfinance fund in Indonesia that provides wholesale services to microfinance institutions (MFIs) and savings services to individuals. Its shareholders include MercyCorps, International Finance Corporation (IFC), the Hivos-Triodos Fund, Cordaid, Kreditanstalt für Wiederaufbau (KfW) Bankengruppe and Mr I Wayan Gatha. Its mission is “to catalyze large-scale outreach to millions of Indonesians lacking access to the financial sector by providing innovative financial products and services to and through microfinance institutions; and to maximize the value of its shareholders’ investments, while creating a long-term, profitable financial institution.” As of 2012, Bank Andara reported total assets of IDR 1.22 trillion (USD 125 million), a gross loan portfolio of IDR 980 billion (USD 102 million), return on assets of -0.33 percent, return on equity of -1.77 percent and 745,000 depositors.
About Standard Chartered Bank
Founded in 1969, Standard Chartered Bank is a financial services company based in the United Kingdom. For the year 2012, SCB reported total assets of USD 637 billion, return on equity of 12.8 percent, and since its inception has financed USD 1 billion to various MFIs in Asia and Africa.
Sources and Additional Resources
[1] The Asset: “StanChart extends microfinance loan to Bank Andara,” http://www.theasset.com/article/24610.html
MicroCapital story, March 13, 2013, “MICROCAPITAL BRIEF: Asian Development Bank, Standard Chartered Bank Commit $150m to Microfinance in Asia,” https://www.microcapital.org/microcapital-brief-asian-development-bank-standard-chartered-bank-commit-150m-to-microfinance-in-asia/
MicroCapital story, March 16, 2012, “MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Guarantees Half of $2.7m From Standard Chartered Bank to Mitra Bisnis Keluarge (MBK) Ventura of Indonesia,” https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-guarantees-half-of-2-7m-from-standard-chartered-bank-to-mitra-bisnis-keluarga-mbk-ventura-of-indonesia/
MicroCapital story, October 5, 2012, “MICROCAPITAL BRIEF: Citibank Indonesia, Overseas Private Investment Corporation Share Risk on $1.8m Loan to Bank Andara to Support Microfinance Institutions,” https://www.microcapital.org/microcapital-brief-citibank-indonesia-overseas-private-investment-corporation-share-risk-on-18m-loan-to-bank-andara-to-support-microfinance-institutions/
MicroCapital story, October 17, 2012, “MICROCAPITAL BRIEF: Standard Chartered Indonesia Loans $3m to Bank Andara to Finance Lending, Technology Services for Microfinance Institutions,” https://www.microcapital.org/microcapital-brief-standard-chartered-indonesia-loans-3m-to-bank-andara-to-finance-lending-technology-services-for-microfinance-institutions/
MicroCapital Universe Profile: Bank Andara https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Andara
MicroCapital Universe Profile: Standard Chartered Bank https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Standard+Chartered+PLC
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