The Micro Finance Bank of Azerbaijan (MFBA) was opened in Baku on 29 October 2002. It is a closed type, joint-stock bank, owned by six shareholders: the European Bank for Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, the German government’s development agency KfW Development Bank, German consulting company LFS Financial Systems GmbH, which is also responsible for the management of the Bank, and microfinance consultants Access Holding. The MFBA is supported by the European Union and the German government.
The MFBA’s charter capital is AZN 11 million which makes it one of the largest banks in Azerbaijan. MFBA has 13 branches in Baku, Sumgayit, Ganja, Sheki, Lenkoran and Khachmaz. In 2007 the Bank plans to open new branches in Baku and Mingachevir and will continue to expand its branch network over the next few years to cover most regions of Azerbaijan.
At the end of May 2007, MFBA had a loan portfolio of 29,000 credits totalling more than USD 72 million. Within four years MFBA has disbursed more than 60,000 loans worth a total of USD 170 million to small and medium-sized enterprises in Azerbaijan. The average loan size is less than USD 3,000. Since May 2005 MFBA has developed and added a range of deposit products, consumer credits and VISA cards to its spectrum of services.

MISSION
The corporate mission of MFBA is to be the leading provider of financial services to privately owned micro and small enterprises in Azerbaijan and to be one of the leading Banks in the country. We strive to be the House Bank for micro and small enterprises, providing them with all necessary financial services, such as loans, current accounts, savings facilities and payment services. We strive to achieve the highest banking standards in our operations, in particular with respect to efficiency, customer satisfaction, transparency and accountability.
As a commercial Bank with a full banking licence, MFBA also offers financial services to other types of client, including private individuals, larger enterprises and international organisations.
The corporate mission of MFBA is the basis for strategic decision-making and for a strong corporate identity. The following principles determine all MFBA business:
• Customer orientation: MFBA products and procedures aim at low transaction costs for our clients and high customer satisfaction.
• Efficiency and standardisation: MFBA strives to design and implement efficient and standardised products and procedures that reflect the nature of microfinance as a mass business.
• Prudence: MFBA always follows prudent standards with regard to accounting, financial policy, risk management, loan evaluation and monitoring. In particular, it has established conservative principles with respect to capital adequacy, liquidity ratios, asset-liability management, portfolio diversification, credit limits and provisioning.
• Transparency and strictness: MFBA’s policies are based on the principles of transparency and strictness. This refers to clear self-binding rules and procedures as well as to information policy and relations to clients.
• Product development: MFBA’s product range and design are constantly being improved to meet client demand and to maintain a leading position in the Azerbaijani banking sector.
• Human resource development: highly qualified and dedicated staff are key to the success of MFBA. Long-term career development plans, in-house career opportunities, continuing training and learning and a comprehensive system of incentive salaries are at the core of MFBA’s human resource policy.
All these principles ensure that the Bank not only serves its clients, but operates with a high profitability. The shareholders intend to reinvest profits to finance the further growth of the Bank, the development of additional products and the training of MFBA’s staff.