THE FIRST MICROFINANCEBANK AFGHANISTAN
Who is our client
FMFB-A is the largest MFI and among the top 3 commercial banks in Afghanistan operating across 80 districts and 14 provinces with 48 outlets serving around 55,000 borrowers and 115,000 depositors. An existing client of FMO and MASSIF, FMFB-A is recognized for its values-led commitment to financial inclusion, emphasis on sustainable development and safeguarding the environment. FMFB-A is the first in the country and fourth in Asia to become a member of the Global Alliance for Banking on Values (GABV), of which FMO is also a member.
Since August 2021, all banks are required to undergo a transition from conventional banking to Islamic Principles based banking. FMO provides a grant to support its client in its conversion of becoming a Shariah compliant bank, offering exclusively Islamic banking products and services. The project will be implemented by two partnering consultancies: Avrio Impact and IFAAS (Islamic Finance Advisory & Assurance Services).
Why we fund this project
This project contributes to MASSIF’s impact objectives of inclusive development in one of the most fragile countries worldwide. This project supports FMFB-A in their mission to keep providing access to financial services to poor and underserved Afghans.
|Date||Total FMO financing|
|7/22/2019||EUR 3.50 MLN|
|7/25/2017||USD 5.00 MLN|
- Financial Institutions
- Signing date
- Total FMO financing
- EUR 0.23 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)