Member

The loss ratio for CDFIs in the States is in fact slightly lower than for banks as a whole. They have capacity to manage risk because they know their customers in a way that many banks do not and because they build structures around their customers. If somebody comes in with a good business idea, they enforce that with advice, help on marketing or whatever else is necessary because they see their role as making that entrepreneur a success, so they bring in those additional resources. A loan book of $450 billion is to me a great success. This is not some marginal experimental idea that has floated around and that I am echoing. I am talking about almost the premier strategy to provide the background and backbone of small business and small business growth across one of the most successful economies on the globe.