While Banco Financiero also has a retail banking activity, it is specialized in lending to medium-sized and large companies in Peru. It particularly finances agricultural and agro-industrial companies.
Banco Financiero was set up in 1986 and taken over by Banco Pichincha (Ecuador) in 1996. It is the 7th largest financial institution in Peru. It is specialized in allocating credit to Medium and Large Enterprises and has gradually diversified towards microfinance and retail banking activities. Banco Financiero also operates in the agricultural sector, which accounts for almost 5% of its credit portfolio.
Proparco’s credit line will be earmarked to finance agricultural and agro-industrial enterprises. The fact that Banco Financiero is medium-sized will firstly allow it to target a client base neglected by the country’s large financial institutions and, secondly, to offer more suitable and faster solutions for its clients’ needs.
This operation will contribute to supporting the development and modernization of agriculture and the agro-industry, which are key sectors for Peru’s economy in terms of job and wealth creation. In the context of this financing, Banco Financiero has also pledged to develop a comprehensive system to manage environmental and social risks.