Banco Pichincha: Expanding long-term lending for MSMEs

Banco Pichincha: Expanding long-term lending for MSMEs

Banco Pichincha of Ecuador approached the IDB in 2008 to help expand its offerings to micro, small and medium enterprises (MSMEs) through a $72 million lending facility.

The IDB also supported Banco Pichincha in developing a strategy to adopt best practices in mitigating environmental, health and safety risks.

Banco Pichincha’s new strategy aimed to address the specific challenges of its MSME clients in navigating national environmental regulations and standards.

Results:

  • Banco Pichincha’s SME portfolio grew from $521 million (2007) to $880 million (2011)
  • Banco Pichincha disbursed 87,517 loans to 31,039 small companies and 10,227 loans to 2,274 medium-sized companies (2011)
  • The microfinance portfolio, through its subsidiary Credifé, grew from a baseline amount of $201 million (2007) to $535 million (2011)
  • Banco Pichincha disbursed 223,986 micro-loans to 153,377 micro-entrepreneurs (2011)
  • In 2011 of all loans disbursed, 24.8% went to female-owned small companies and 55.8% to female micro-entrepreneurs

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