Bankers Trust New York Corp. last week launched a charitable foundation for its private clients that will lend to poor people abroad.
The BT Microcredit Development Fund will lend to existing programs that will make small loans to people who want to launch businesses.
The BT fund was established with assistance from the World Bank, a leading provider of microcredit.
Microcredit projects seek to enhance the economies of Third World nations by investing in entrepreneurial local people.
"We're committed to broadening the partnership of support for microcredit and engaging individuals as social investors in these programs, " Richard A. Marin, senior managing director of Bankers Trust private banking, said in a press release.
The fund will be capitalized by tax-deductible donations of a least $50,000 from Bankers Trust's private banking clients.
Clients had expressed interest in the creation of such a charity at "Wealth with Responsibility" seminars hosted by the bank. The seminars cover philanthropy and ethical investing.
Through its Bankers Trust Company Foundation, the bank will match 15% of the first $500,000 raised and 5% of the next $4.5 million. The foundation will pay for the administration of the fund.
"The World Bank recognizes that solutions for poverty require building links with the private sector," said Ira Lieberman, head of its microcredit programs.
Bankers Trust manages about $230 billion of client assets in 55 countries.
