Banco Compartamos was shaped in 1990 as a non-governmental association to assist the poor in rural areas of Chiapas and Oaxaca, Mexico by providing microloans. Compartamos executives attained $150 million of $450 million in profits.
Banco Compartamos turned into one of the most triumphant banks of Mexico, with an average return on equity of 40 percent since becoming for-profit. Critics, however, charged that Compartamos managed its company to benefit its investors, not its borrowers and did a disservice to the world of microfinance. This case briefly explores microfinance approaches and Banco Compartamos.
Social Entrepreneurship Banco Compartamos case study solution
PUBLICATION DATE: October 20, 2008 PRODUCT #: P71-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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