Plantersbank has a 40-percent stake in MEBP while IFC controls 10 percent of the bank.
The other partners are Internationale Micro Investitionen AG, a German microfinance firm that owns 20 percent; Stiching Duurzanne Ontwikkeling En Natturbescherming Postcodeloterij-Doen, a Dutch Foundation for sustainable development which owns another 20 percent; and Netherlands Development Finance Co., another Dutch firm that owns 10 percent.
The approval of the BSP makes MEBP the country’s second microfinance bank with a paid up capital of P60 million.
IFC’s investment should boost efforts to reduce poverty in Mindanao, and fuel growth of micro and small businesses in the region, especially those affected by prolonged strife over the years.
BSP Deputy Governor Alberto Reyes said the bank is the second microfinance bank to be organized under BSP Circular 273 issued last Feb. 27. The circular exempts microfinance-oriented thrift or rural banks from the general moratorium on the establishment of new banks.
This is a step in the right direction since this will encourage small businesses and retailers to tap microlending facilities," Reyes said, adding that hopefully, the lending scheme will spur bigger economic activities, especially among the marginalized sectors.
Reyes said DCMEB will provide credit and other banking services to micro-enterprises. He said the bank will grant loans ranging from P10,000 to P200,000, but will also accept applications for loans up to a minimum of P2,500.
The DCMEB’s president is Michael Alcorn, a micro-finance specialist connected with the International Project Consult GmBh, a German concern.
The MEBP in Davao City is the first branch to be put up by the IFC-Planters bank partnership.
Last month, the BSP approved the establishment of the Opportunity Microfinance Bank (OMB), the first micro-finance bank in the country.
OMB is composed of non-government organizations (NGO) that include the Alliance of Philippine Partners in Enterprise Development, Opportunity International Network, Alalay sa Kaunlaran sa Gitnang Luzon, Kabalikat Para sa Maunlad na Buhay Inc. Taytay sa Kauswagan, Inc., and Daan sa Pagunlad Inc.