Compartamos Banco controversies

Controversy over the Compartamos IPO and microcredit pricing

The 2007 IPO generated substantial returns for existing private and philanthropic investors and became a focus of criticism because the bank reportedly charged interest rates above 100 percent on some loans to poor borrowers. Critics questioned whether the commercial model prioritized investor returns over customer welfare. Muhammad Yunus condemned the institution's approach, while the Consultative Group to Assist the Poor defended the use of private investment for expansion but raised concerns about shareholder priorities.