Latin America & Caribbean
|Date joined:||2 January, 2018|
|Initiatives:||Principles for Responsible Banking|
|Reports:||Mar 21 Apr 22|
The Agricultural Development Bank (Banco de Fomento Agropecuario – BFA) is an institution with its own legal status, with a contribution of capital from the State, decentralized, with autonomy in the administration of goods and operations that it undertakes. BFA is authorised for the financial intermediation of securing public deposits and providing productive loans mainly to micro, small and medium-sized entrepreneurs and the agricultural and agro-industrial sector.
The bank began operations on the 4th of May, 1973; since then it has prioritised the financing of smaller producers that are otherwise ignored by banking institutions. During 2017, BFA dealt with 35% of national agriculture loans.
BFA has national coverage and has a distribution network of 42 service centres across the country’s 3 zones. They have been strategically located for the market niche; in coffee production areas and in the departmental capitals of the country.Their strategic plan is based on consolidating the bank as the driver of development through:
- Growth and Diversification.
- Their position as a development bank.
- Modernisation and Institutional Quality.
- Development of Human Ability.
Description of Sustainability Strategy
Based on the values, strategic vision and the triple bottom line principles of BFA, their Sustainability Strategy is a guide that will guarantee long term operational success. It is their commitment to communities to contribute to different initiatives related to topics of Sustainability.
The commitment of the bank in regards to a generation of social, environmental and economic requirements is to operate and grow hand in hand with the strategic sectors within El Salvador. Therefore, their business model looks to manage and mitigate the impact of our products and services, award credit that will transform communities in a positive way and through financial inclusion provide a better quality of life for the people of El Salvador.
Their commitment to Climate Change and Environmental Management, Client Protection, Equality and Gender, and Social Performance Management is directed through the Sustainability Unit who are responsible for relating to these four axes within operational activities.