As its name implies, the “Bankomunales” are small organizations owned by members of the community who decide to establish capital to give each other financial and investment services. In other words, they are like small banks owned by community members who are given loans to each other, to undertake any type of activity. They have the advantage of being very dynamic and quick to extend credit without any difficulties or the requirements normally demanded by traditional commercial banks.

Origin of Bankomunals

The Bankomunales are rooted in informal financing mechanisms widely used in low-income communities (SUSU, SAN, bag, etc.) and FUNDEFIR has improved and become a successful methodology for community organization and self-financing. In Venezuela the program currently operates in more than 50 communities in several

Where do the resources of the Bonkomunals come from?

The “Bankomunales” have as a resource, the capital contributed by community members (Partners) through the purchase of shares.

How does a Bankomunal work?

It works with resources contributed by the partners. These resources are managed by a Board of Directors and an administrative board, constituted and elected by the same partners. The funds provided are used to provide loans to the same partners. As the credits are paid and that capital increases by selling new shares, they give new loans, those will get payed and it generates new profits, allowing new loans and so on.