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Population (millions) |
26.7 |
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Gross domestic savings (% of GDP) |
16.9% |
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% Population under $2/day (PPP) |
41% |
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Regulated microfinance institutions |
Commercial microfinance banks; municipal savings banks (Caja Municipales de Ahorro y Credito [CMACs]); rural savings banks (Caja Rurale de Ahorro y Credito [CRACs]); and regulated NGOs (EDPYMEs [Small Business and Microenterprise Development Institution]). |
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Non-regulated sources of microfinance |
NGOs, Roscas, etc. |
General Approach to Regulating
Based on the Comparative Database on Microfinance Regulation by the IRIS Center of the University of Maryland|
Regulated NGOs (EDPYMEs) |
Municipal Savings Banks (CMACs) |
Rural Savings Banks (CRACs) |
Commercial Microfinance Banks | |
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Definition or description of institution |
To provide persons engaged in small or micro businesses with access to financing |
A deposit taking financial institution specialized in the financing of small and micro enterprises |
A deposit taking financial institution specialized in the financing of small and micro enterprises in rural areas |
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Guidelines & restrictions on financial services |
Permitted: Credit only. Can access bank credit, equity markets, COFIDE refinance, Public deposit-taking permitted only with prior SBS approval and a capital base of $1.4 million (4.87 million PEN). SBS license, securities agency registration required to access equity market |
Permitted: Savings, term, pension & current accounts (no checking); pawn, personal, business loans; bill payment and forex operations Phasing: Savings and pawn loans permitted in 1st year, phase-in microenterprise loans in 3rd year. |
Permitted: Passbook savings, term deposits Prohibited: current accounts Demand deposits only with a $2.8 million (9.73 million PEN) capital base. |
Offers full financial services |
Cajas Municipales de Ahorro y Crédito (CMACs)
From the paper: "The Provision of Microfinance Services by Savings Banks: Selected Experiences from Africa, Asia and Latin America", 2004, pages 52-63
By: Hugues Kamewe and Antonique Koning
This paper discusses the capital structure of the CMAC system in Peru, including 13 savings banks. Financial services offered by the CMACs are basic and reached US$50 million at the end of 2001. All started off by providing pledge credit with gold or silver jewels as guarantees. Then, consumer credits and microenterprise credits were introduced. Since 1999 the CMACs have also provided agricultural credit, and housing finance was introduced in 2002.
On the liabilities side, the CMACs mainly offer ordinary savings accounts and fixed deposits (two thirds of the deposits). In 5 years time the level of deposits has quadrupled. At the end of August 2003 the CMACs held US$359.9 million in deposits. Deposits are still growing, although not as fast as the demand for credit. Entry barriers for deposit accounts are kept low to attract the lowest income savers. The minimum amount to open an account varies at around US$10 depending on the CMAC. The CMACs do not charge a commission on savings accounts and interest rates paid on savings result in positive rates in real terms. Other initiatives that are taken to attract savers are more promotional. For instance, there are lotteries organised for which clients can obtain tickets having saved a certain amount in a brief period or reached a certain balance.
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.
FINCA/Peru--Putting Savings First (188 KB, DOC)
From the paper: INNOVATIONS FROM THE FIELD, A Daringly Brief Summary of a Huge Phenomenon, 2002
By John K. Hatch, Sara R. Levine and Amanda Penn
Organized in 1993, FINCA/Peru currently serves more than 6,400 clients through 256 village banks. Total loans outstanding amount to $856,000 (average loan $169), but client savings exceed $1,320,000. One of the smallest programs among FINCA International's network of 21 affiliates, the average FINCA/Peru client has accumulated four times more savings ($206 per member) than the average for the network as a whole. It has $2 in savings for every $1 of loan capital borrowed from external sources. This result emerged less from conscious design than by necessity, because throughout its history FINCA/Peru has had less access to external sources of loan capital than most other affiliates, so the program learned to depend primarily on the lending of its own savings, much like a credit union. In turn, this strategy has allowed its members to recycle most of their interest income back into group equity.
Pricing objectives at Caja Municipal de Arequipa
Caja Municipal de Arequipa (CMA) of
This case study can be found in Savings Operations for the Poor: An Operational Guide, edited by Madeline Hirschland, forthcoming from Kumarian Press 1294 Blue Hills Avenue, Bloomfield, CT 06002.
See also:
Creating a microfinance bank in Peru: ACP's transformation to Mibanco, 2002, Arbuckle, J.G. & Campion, A. & Dunn, E.
Sustainable Banking with the Poor, Case Studies in Microfinance: CMAC, World Bank
Relational Marketing, Market for Trust Case Study, CGAP
Commercial Approaches to New Product Development: Banco Solidario de Ecuador & Cajas Municipales de Arequipa, Peru. 1999, Brand, M.