The Banking with the Poor (BWTP) Network arose out of the Banking with the Poor project of the Foundation for Development Cooperation. The Foundation is an independent, non-profit organisation based in Brisbane, Australia, whose aim is to strengthen international cooperation and development, especially in the Asia-Pacific region. The Banking with the Poor project is aimed at exploring, demonstrating and publicising the potential for increased access to credit for the poor on a sound commercial basis. The essence of Banking with the Poor is to establish linkages between commercial banks on the one hand, and non-government organisations (NGOs) and self-help groups (SHGs) of the poor on the other.
An initial research study for Banking with the Poor was conducted in eight developing countries in South and Southeast Asia. It commenced with a major workshop in Manila in 1991, which agreed on terms of reference and methods for the case studies. A second regional workshop in Kuala Lumpur in 1992 drew together findings of these studies. These were published in a major report, titled Banking with the Poor, with assistance from the World Bank.
A third regional workshop was held in Brisbane in 1994 with assistance from UNDP. The meeting discussed a draft report, Best Practice of Banking with the Poor. This report, released in 1995, documents the best approaches by banks and NGOs to banking with the poor, and analyses how governments, central banks and development agencies can best support such approaches.
In 1996 and 1997, a number of meetings were held to establish the Banking with the Poor (BWTP) Network on a more formal basis. Financial assistance was received from the Consultative Group to Assist the Poorest (CGAP) to support this process. A constitution for the Network was agreed by members during 1997 and formally ratified at a fourth regional workshop in Bangkok in November 1997. The fourth regional workshop, held in conjunction with the Sustainable Banking with the Poor program of the World Bank, also considered two major reports prepared by the Foundation. The first of these, Getting the Framework Right: Policy and Regulation for Microfinance in Asia, was published in June 1998 with support from the World Bank.The second, also published in 1998, examines the role of commercial banks in microfinance.
The BWTP Network consists of some 35 national policy institutions, commercial banks and NGOs from nine countries in Asia, namely Bangladesh, India, Indonesia, Malaysia, Nepal, Pakistan, Philippines, Sri Lanka and Thailand, all committed to linking microfinance with the financial system. Some of these institutions have been involved in the Banking with the Poor project since its inception in 1991, while others have joined the project more recently. The Network is an autonomous body with its own executive, but the Foundation continues to serve as its secretariat.