Microfinance
Hundreds of millions of people in developing countries are denied access to the banking sector because they are unable to offer the requisite security. However, in recent years a new development initiative referred to as "microfinance" has become an increasingly powerful force for change. Microfinance involves granting loans – often as small as USD 50 – to enable very small businesses to become established or to significantly increase the profitability of their activities.
Not only borrowers but also investors are displaying an interest in microfinance. In 2003, Credit Suisse Group therefore joined with other representatives of the Swiss financial services industry to establish responsAbility AG, which aims to bridge the gap between the financial market and development cooperation. The responsAbility Microfinance Fund is an innovative investment concept that generates social benefits as well as financial returns.