Even before Muhammad Yunus and Grameen Bank won the Nobel Peace Prize, top banks were already engaged in microlending. Citigroup has been a pioneer. Citigroup recently said it will be starting a $100 million local currency financing program. That includes a $70 million guarantee from the Overseas Private Investment Corporation, a government agency. The innovation is that the loans will be in local currency. Another brow raising move: Citigroup structured the first securitization of microcredit receivables ever in July. The deal provides the Bangladesh Rural Advance Commission with $180 million over a six-year period. Deutsche Bank and HSBC are also making some inroads.

For more on Citigroup:
- Here's an article from Investment Dealers' Digest