Ngo Bank Compartamos
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- Category: English
- Date Submitted: 01/15/2011 08:31 AM
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Bank Compartamos
In 2006 the financial personal loans institution became a formal bank, Mexicans saw this small organization to grow from ground zero to the level of what any shareholder dream about, this organization was founded in 1990 as a credit institution NGO; borrowing small loans to small communities emphasizing in not-for-profit providing microcredit to marginal communities whom live in poverty helping with services that were not available to these communities, the slogan of bank compartamos the bank of the poor.
The key factor playing a good role in this financial institution was to keep management low operating cost while borrowing microcredit with high rate of interest, making the financial business very profitable for compartamos as well as the shareholders, the mission to developed agencies was to raise standard of the poor while making the poor even more poor, sort of like the rich king taking from robin hood.
Taking into consideration the high rate of 86 percent p.a. net taxes on its loans to the poor with a VAT of 99% p.a. compartamos claimed that their interest rates were so high because they were giving small size loans, basically the minimum wage in 1990 was the 20.12 pesos per day less than $2.00 dollars, in other words if you were given a loan of 450 which was the minimum to lend, and a Mexican citizen was making an income of 630 pesos in 1990, they were giving up more than half of their monthly income.
I heard once someone saying that this business was good because they were keeping the clients happy and using the money from the poor to help other poor in other words cycling the monetary business, I almost choke out when I hear such thing, with those high interests I don’t any ethical movement in such business, but as a business man I applaud the way the scammed the poor to transfer that money to the pockets of the wealthy shareholders.
First of all we need to stay focus and remember what was the aimed of such...
In 2006 the financial personal loans institution became a formal bank, Mexicans saw this small organization to grow from ground zero to the level of what any shareholder dream about, this organization was founded in 1990 as a credit institution NGO; borrowing small loans to small communities emphasizing in not-for-profit providing microcredit to marginal communities whom live in poverty helping with services that were not available to these communities, the slogan of bank compartamos the bank of the poor.
The key factor playing a good role in this financial institution was to keep management low operating cost while borrowing microcredit with high rate of interest, making the financial business very profitable for compartamos as well as the shareholders, the mission to developed agencies was to raise standard of the poor while making the poor even more poor, sort of like the rich king taking from robin hood.
Taking into consideration the high rate of 86 percent p.a. net taxes on its loans to the poor with a VAT of 99% p.a. compartamos claimed that their interest rates were so high because they were giving small size loans, basically the minimum wage in 1990 was the 20.12 pesos per day less than $2.00 dollars, in other words if you were given a loan of 450 which was the minimum to lend, and a Mexican citizen was making an income of 630 pesos in 1990, they were giving up more than half of their monthly income.
I heard once someone saying that this business was good because they were keeping the clients happy and using the money from the poor to help other poor in other words cycling the monetary business, I almost choke out when I hear such thing, with those high interests I don’t any ethical movement in such business, but as a business man I applaud the way the scammed the poor to transfer that money to the pockets of the wealthy shareholders.
First of all we need to stay focus and remember what was the aimed of such...