The Remarkable Expansion of Community Banks in Brazil: Discovering Palmas’ Methodology

“During 30 years, we have grown by encompassing the most deprived neighbourhoods of Fortaleza to form the large Conjunto Palmeiras. As a result, we contributed to reducing the poverty of many people. Our community is an example of income distribution. Our inhabitants do not have the same income as many others living in richer parts of Fortaleza, but they have at least a minimum yield, they are motivated and they feel like citizens. We have also created a huge network of community banks in Brazil and we are serving as an example for many other developing countries. This is a very different reality from 1973, when the community was a slum, in the middle of a swamp.

We recognize the valuable accomplishment but we need to reflect: fourteen years ago, when we created Banco Palmas, we wished to avoid the diversion of resources from Conjunto Palmeiras to other localities in order to reduce impoverishment. Now, we have another challenge: we need to find ways to bring in resources from outside and, at the same time, to keep our people motivated to generate wealth inside the community.”