Ways out of the poverty spiral

The fight against extreme poverty and hunger is the first of the 8 Millennium Development Goals of the United Nations. Specifically formulated, it is the aim, to halve from 1990 to 2015 the proportion of people who live on less than the equivalent of one U.S. dollar per day or who have to starve.

This is an enormous task. Even the churches have in their socialword "for a future of solidarity and justice", the assumption of responsibility required. Therefore, we have poverty reduction as a churchly - and secular - target under the work for peace, justice and the preservation of creation firmly anchored in our strategic planning process. Microfinance is an effective means of combating poverty. Microfinance investments have shown in the current crisis also stable and adequate returns. And that is the measure of all things: the adequacy.

And that is the way microfinance works

Many people in developing and emerging countries have no possibility to participate in economic life. The biggest obstacle often is not having access to financial services. Though feasible ideas and the necessary business knowledge and skills are available.

Microfinance closes this gap. Specialized microfinance institutions offer poor but economically active people in developing countries, financial services, especially microcredits. These small loans work like a "helping people help themselves". In the repayment agreement is often a savings rate included to create a cushion for illness or other difficult situations.

Microfinance institutions - Success by customer proximity

There are currently around ten thousand specialized microfinance institutions for these clients. But into light of the general public microfinance came in 2006 through the awarding of the Nobel Peace Prize to the economics professor Muhammad Yunus and the Grameen Bank founded by him. Microfinance institutions have local presence and know their customers very well. They accompany their development with customized products and have specialized knowledge in this area.

Microfinance as a driving force for development
The success of micro-entrepreneurs not only mean more wealth for themselves and their families, but also economic growth for an entire region and country.

Microfinance - an investment opportunity with potential
The financial resources for the grant of micro-loans are often provided by Microfinance Funds. The benefit for investors in the fund is given in two ways: by the financial yield of the investment and the good feeling to help other people. The investor knows that the money generates an added value for him and also helps others to have a better future. It is a contribution to take actively part in the development of the world.

Extensive know-how
Not only since the awarding of the Nobel Peace Prize to Dr. Muhammad Yunus, the "banker of the poor" in Bangladesh, microfinance is an issue for us. For some years we have worked intensively with this idea, and already in 2007 launched our first microfinance fund. Thus, we are a pioneer in the German banking landscape.