IFC, a member of the World Bank Group, has come forward to invest in Poland’s first microfinance bank to support the microfinance sector and improve access to finance for micro and small businesses.
FM Bank, which had recently received a commercial banking license, will be established from the operations of Fundusz Mikro, a Polish microfinance institution with 40 branches across the nation. As a full-fledged bank, FM Bank is expected to mobilize deposit funding, allowing it to widen the range of products offered to micro and small businesses. IFC has said that its investment would give it a 10% equity share in the bank.
Henryk Pietraszkiewicz, acting president of FM Bank, said: Poland has a diverse and active microenterprise sector but it is not well served by traditional banks—and FM Bank wants to change that. Our focus will be on providing tailored service and products for micro and small entrepreneurs. We welcome IFC’s investment and strong support in this endeavor.
André Laude, chief investment officer of IFC, said: IFC is delighted to support Poland’s first microfinance bank and we welcome this significant step in the development of the country’s microfinance sector. Providing affordable credit and other financial services to small businesses will promote the development of an active private sector, generate jobs, and help reduce income disparities.
