Individual and Institutional Investments to Rise Sharply
NEW YORK, December 19 /CNW/ - Deutsche Bank today announced the results
of an in-depth study that examines the attractiveness of microfinance for
private sector investors. Dr. Norbert Walter, Chief Economist at Deutsche Bank
presented the key findings at a luncheon in New York.
The report, entitled "Microfinance: An emerging investment opportunity,"
represents the first formal research paper on microfinance investments
produced by a major financial institution. The study suggests that
microfinance will evolve into a niche investment product that will
increasingly attract both retail and institutional investors. Microfinance is
also said to benefit from a further strong rise in socially responsible
investments and to increasingly appeal to a wider range of commercial
investors. As a result, the study forecasts individual and institutional
investments to rise to USD 20 billion by 2015.
"Microfinance has undergone a significant transformation in recent
years," said Walter. "This study has demonstrated that the steadily growing
popularity of microfinance has reached a global audience and continues to be a
key facilitator in helping to fight poverty in both developing and developed
"Private sector investors have already invested around USD 2 billion, but
they have barely started to explore the full potential of microfinance
investments," said Raimar Dieckmann, Deutsche Bank analyst and author of the
Data from the report shows that although the microfinance sector
currently has an estimated total loan volume of USD 25 billion outstanding,
there is still a tremendous funding gap estimated at USD 250 billion. To scale
up microfinance, an increasing involvement of private sector investors is a
Other key findings:
-- The volume of total microfinance loans has risen sharply in recent
years from an estimated USD 4 billion in 2001 to around 25 billion in 2006.
-- Since 2004, both international public and private sector investors
have doubled their investments which together have reached over USD 4.4
-- Total foreign funding is expected to increase to roughly USD 25
billion by 2015, 80% of which is expected to come from institutional and
individual investments. The remaining USD 5 billion will be provided by
International Financial Institutions.
In addition to the study, the Microfinance Information Exchange (MIX)
announced its second annual rankings of the top microfinance institutions.
Peter Wall, Executive Director of MIX, made the presentation of the Global Top
100 Composite, a ranking based on several indicators including number of
borrowers, gross loan portfolio and profitability. Zakoura in Morocco,
Sabaragamuwa from Sri Lanka, Al Amana, also of Morocco, GV in India and
ProCredit Bank in Serbia rounded out the top five.
The study is available for download at www.dbresearch.com.
Deutsche Bank (NYSE: DB) is a leading global investment bank with a
strong and profitable private clients franchise. A leader in Germany and
Europe, the bank is continuously growing in North America, Asia and key
emerging markets. With 77,920 employees in 75 countries, Deutsche Bank
competes to be the leading global provider of financial solutions for
demanding clients creating exceptional value for its shareholders and people.
Deutsche Bank Securities Inc., member NYSE, FINRA and SIPC, is the
investment banking and securities arm of Deutsche Bank AG in the United
For further information:
For further information: Deutsche Bank Scott Helfman, 212-250-5602 Media