Microfinance in Mexico: Contributing to Mexican Economic Development

Microfinance in Mexico is a key part of Mexican economic development. It promotes both economic growth and social justice. That is why it is encouraging news to report that the Mexican financial institution Banco Compartamos has had its credit rating reaffirmed by Standard & Poor’s. Banco Compartamos S.A., Institución de Banca Múltiple specializes in microfinance, and it is the largest lender to microbusiness owners in Latin America. Established in 1990 and headquartered in Mexico City, Compartamos provides small loans to low-income Mexican individuals and business owners, such as craft manufacturers, food vendors and other small businesses. As an essential actor for microfinance in Mexico, the Bank also provides home improvement loans and life insurance products to its clients. Standard & Poor’s determined that “The stable outlook reflects our expectation that Compartamos will maintain an important pace of market penetration, while maintaining its asset quality supported by its good financial profile and its strong capital base.”