Santiago, Chile, August 26, 2024 — The International Finance Corporation (IFC), a member of the World Bank Group (WBG) announced the signing of a loan of US$200 million to Banco BICE to finance housing loans, with a focus on housing loans for women. The loan will have a five-year tenor and a three-year grace period, helping Banco BICE increase and diversify its long-term financing to support the housing portfolio growth.
According to gender-disaggregated data published by the Comisión para el Mercado Financiero (CMF), there is a gender gap in access to housing loans in Chile, with only 41 percent of all mortgage loans going to women. This gender gap is also evident in other metrics, as only 20 percent of women have borrowed formally compared to 28 percent of men, and only 24 percent of all outstanding commercial loans have been granted to women, according to Findex and CMF, respectively.
The financing will enable Banco BICE to expand its mortgage lending, with a particular focus on women borrowers. Mortgage lending constitutes 23 percent of BICE's loan portfolio and is a crucial business line complementing the bank's commercial lending portfolio.
"We value our long-term partnership with Banco BICE. Supporting the social and economic empowerment of women through this gender-focused loan will strengthen our strategic alignment with Banco BICE," said Helena de la Torre, IFC's Regional Industry Manager for Brazil and Southern Cone. "IFC is committed to helping the Chilean financial sector become more inclusive, demonstrating the financial viability of a gender focus in mortgage lending to encourage replication by other banks."
Banco BICE General Manager Alberto Schilling said: "For us, this loan is extremely important, as it is a very concrete demonstration of the World Bank Group's appreciation of our work and commitment to effective gender policies, which contribute to closing the gaps we still have in this area in our financial market. In addition, along with the loan itself, comes an opportunity to transfer experiences and knowledge from IFC to our teams. Currently, 57% of our mortgage loans are granted to women and we hope that with this financing this percentage will increase even more."
IFC is also expected to support Banco BICE by sharing knowledge through Financial Advisory Services to help strengthen Banco BICE's gender strategy. Understanding the dynamics of the overall portfolio for women borrowers and offering tailored solutions for women clients will help better address the gender financial gap in Chile.
This project aligns with IFC's strategic goal of promoting financial and social inclusion and with the World Bank's gender strategy of removing barriers to women's ownership and control of assets.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org
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About Banco BICE
Banco BICE is a leading financial institution in Chile, renowned for its strength and unwavering commitment to excellence in customer service. Since its inception, Banco BICE has been dedicated to fostering the development of Chile and the financial industry, consistently striving to provide exceptional banking services and comprehensive solutions to individuals, businesses, corporations, and investors. All of this is driven by a singular mission: to enhance your well-being by delivering a unique financial experience with a human touch.
