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Population (millions) |
174.5 |
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Gross domestic savings (% of GDP) |
21.5% |
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% Population under $2/day (PPP) |
24% |
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Regulated microfinance institutions |
Microfinance institutions (SCMs), NGOs (OSCIPs), credit cooperatives, development banks (e.g., Banco do Nordeste do Brazil's CrediAmigo program). Government-funded programs also exist to promote development of micro- and small enterprises. Consumer credit and supplier credit are also popular. |
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Non-regulated sources of microfinance |
NGOs |
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Predominant informal finance mechanisms (ROSCAs, tontines, etc.) |
Moneylenders, relatives |
General Approach to Regulating
Based on the Comparative Database on Microfinance Regulation by the IRIS Center of the University of Maryland
| Development Banks | Credit Cooperatives | Microcredit companies (SCMs) | Microcredit NGOs (OSCIPs) | |
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Definition or description of institution |
Not-for-profit cooperative financial institutions created to meet the basic financial service needs of low and middle income citizens | Formal for-profit financial entities. Can be owned by OSCIPs | Not-for-profit organizations whose social objectives must fall within a specific list (including provision of credit) | |
| Guidelines &restrictions on financial services |
Permitted: loans, check-cashing, savings, insurance, housing loans Prohibited: credit cards, bonds, debentures |
All cooperatives can offer demand and term deposits for members, loans, obtain loans and grants from domestic or foreign financial institutions, including concessional loans, offer collection and custody services, and partner with other financial institutions to gain access to the payment system. Prohibited: foreign exchange, leasing, factoring, or housing finance. |
Permitted: loans, guarantees to individuals and organizations. Can invest in financial markets within limits stipulated in license. Prohibited: Issuing debt, deposit-taking, consumer loans, mortgage loans, participating in the interbank deposit market, insurance services, and publicly issuing securities. |
Permitted: loans, check-cashing. Can access public sector funds, donor funds, and private investor funds. Prohibited: deposit-taking, insurance and pawn services, housing loans, credt cards
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SAVERS' NETWORK "Tres Fronteras", 2002
Contact Person: Martin Hildebrand
The network of savers "Tres Fronteras" (Three borders) is an initiative led by women, mainly heads-of-household, in the Amazon town of Leticia. It was started over two years ago, by a group of people from the poorer area of town, who through a process of daily savings, solidarity and mutual support, have managed to consolidate a dynamic cycle of savings and credit-loans. Their aim is to seek alternatives to satisfy their own daily needs, and to solve their housing problems.
The group of savers involves people of all ages, and from the three countries that form this border region (Colombia, Brazil, Peru). This creates a harmony between generations, equality among members, and promotes a spirit of cooperation.