Proparco is supporting Panamanian SMEs and women’s entrepreneurship

Capital Bank is the 5th largest Panamanian-owned bank in terms of assets (USD 1.5bn balance sheet). It is a dynamic and innovative bank with a well-established SME strategy.

The financing will support the development of SME lending in Panama (70% of the credit line), as well as financial inclusion for women who manage or own SMEs (30% of the credit line). This financing is part of the 2X Challenge initiative. These two uses of funds are fully in line with the strategy of Capital Bank, which has strengthened its expertise in serving SMEs over its 11 years in operation and is now demonstrating its commitment to contribute to the inclusion of women entrepreneurs. A technical assistance budget in 2020 will help Capital Bank introduce products and services for women. 

This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy. 

This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).

By supporting the growth of SMEs, this operation will contribute to the development of Panama’s economic base.

Proparco’s financing will contribute to increasing Capital Bank’s SME portfolio. Over the next 5 years, the bank’s SME portfolio could increase by 25% compared to the bank’s current outstanding loans to SMEs. The operation will also contribute to maintaining and creating local jobs. 

As women SME managers will have easier access to credit, this project is contributing to reducing gender inequalities.