Banco Do Nordeste

After six years of operations, the Banco do Nordeste’s (BN) microfinance program—known as CrediAmigo—today is one of the largest microcredit operations in Latin America and appears to be one of the leaders in the region based on key performance indicators. The BN CrediAmigo case demonstrates the potential for rapid growth and outreach of a microcredit program within a state-owned retail bank (SORB) and the need for coordination between bank management and donors supporting such initiatives. One apparent lesson from the Banco do Nordeste case is that multilateral donors must adapt the timing of loan disbursements to the optimum pace of implementation of a microfinance project. It also points out that training of personnel from both the donor and the financial institution is essential for project progress and success. Finally, the case is a reminder that despite its success to date, the program faces ongoing challenges regarding growth and maintenance of good financial performance.