Scotiabank is involved in innovative microfinance* initiatives that leverage our core retail banking expertise and proven payment capacity measures to create opportunities for entrepreneurs and underserved communities, especially women and owner-operators of micro-business.

By providing access to credit, these programs allow households and micro-businesses with ideas, energy and initiative to achieve economic independence and drive economic development.

Overview of Scotiabank's microfinance services

Microfinance in Jamaica:

Scotiabank's longest running microfinance program is Micro-Enterprise Financing Limited (MEFL) in Kingston, Jamaica which we operate in collaboration with the Canadian International Development Agency (CIDA) and the Kingston Restoration Company.

First incorporated in 2002, with Cdn$2 million in loan capital from Scotiabank, MEFL offers low-income micro-entrepreneurs access to loans with little or no collateral, savings accounts and training in business development, money management and life skills. Originally established to aid Kingston's poorest neighbourhoods, MEFL has expanded to serve rural clients and farmers, and operates in four locations: Kingston, Santa Cruz/St. Elizabeth, Savanna-la-Mar/Westmoreland and Linstead/St. Catherine.

Microfinance services in Chile:

In Chile, our affiliate, Banco del Desarrollo (BDD), operates a microfinance subsidiary that provides working capital loans, savings accounts, mortgages, insurance and electronic account services to approximately 45,000 borrowers, with loans averaging just over US$3,000. Specialized initiatives include the "Solidarity Development Program," which provides financing to peer groups of women to support basic income generation and housing purchases. BDD also provides various socially oriented lending programs for community development projects, such as rural drinking water co-operatives.

Microfinance in Perú:

The acquisition of Banco de Trabajo (Bantra) last year added to the microfinance business already active in Scotiabank Perú, and has made our Peruvian affiliate a major provider of banking services to this segment in Perú. With a microfinance loan portfolio of approx US$250 million, we serve approximately 100,000 borrowers with average loans of US$2,500.

These services play a key role in Perú's economy, since small and micro-business are responsible for 42 per cent of the gross domestic product and approximately 2.5 million micro-businesses represent close to 73 per cent of the country's urban working population.

Scotiabank's other microfinance operations:

Over the last couple of years, Scotiabank has built up its support to micro-entrepreneurs in other emerging markets. In 2008, Scotiabank purchased Banco de Antigua (BdeA) in Guatemala and Banco de Altas Cumbres (since renamed as Soluciones) in the Dominican Republic.

BdeA's Micro-Finance operations include approximately US$20 million in loans, averaging US$3,000, to 6,000 customers.

At Soluciones in Dominican Republic, the 2,000 microfinance clients have accumulated loans balances of US$8 million.

* We define micro-finance clients as self-employed or micro-business owners with annual revenues below US$100,000.