Banco Compartamos was established in 1990 as a non-governmental organization to help the poor in the rural areas of Chiapas and Oaxaca, Mexico by providing microcredit. In 2001, Carlos Danel and Carlos Labarthe took up private, and then in 2007 made public Compartamos IPO in the amount of $ 1.53 billion. Compartamos leaders received $ 150 million from $ 450 million in revenue. Banco Compartamos became one of the most successful banks in Mexico, with an average return on equity of 40 percent, as it gets for a profit. Critics, however, said that Compartamos manages the business on behalf of its investors, not its borrowers did bad in the world of microfinance. This case briefly examines Banco Compartamos and microfinance approaches. "Hide
by David P. Baron Source: Stanford Graduate School of Business 3 pages. Publication Date: October 20, 2008. Prod. #: P71-PDF-ENG
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