Articles

Banque du Caire CEO Shares Their Strategy for SME Financing

Banque du Caire has embarked on a five-year transformation strategy that includes regional expansion, strengthening its digital platform and boosting SME financing and financial inclusion. This interview with the CEO Tarek Fayed, shares how the bank is expanding its SME loan and microfinance portfolios.

Articles

Articles

MEB Will Lend K250 Billion to Local SMEs
Myanma Economic Bank (MEB) will provide funds to SMEs in the the manufacturing, production and trading, import substitution, recycling and energy saving and services sectors. MEB has a two-step loan with an interest rate of nine percent, a part of their SME loan program. Borrowers able to utilize property as collateral will be able to access K300...
India's Economic Survey 2017-18
The Economic Times review of the Economic Survey 2017-18 says that the amount of credit or loans disbursed by banks amounted to Rs 26,041 billion as on November 2017, but 82.6% of this was pocketed by large enterprises. For millions of SMEs in the country, banks only lent out 17.4 % of the total credit. Learn more about the survey and how MSME...
Reforming Japan’s Credit Guarantee Program for Small and Medium-sized Enterprises
UESUGI Iichiro, Faculty Fellow at the Research Institute of Economy, Trade and Industry and Professor, Institute of Economic Research, Hitotsubashi University outlines the reform measures from Japan's credit guarantee program reform bill. dHe also discusses the challenges going forward. The first set of measures proposed by Iichiro are to make a...
Zaw Lin Aung
KBZ Bank or Kanbawza Bank has more than 470 branches throughout Myanmar, with plans to grow its division devoted to SMEs. Running for a year, the new initiative uses credit guarantee insurance to attract borrowers, offers client banking training and has improved its IT operations to better serve SMEs. More than 90 percent of the country’s...
AGF Executive Shares His Strategy for SME Financial Assistance
The African Guarantee Fund’s (AGF) chief executive Felix Bikpo talks about their strategy to assist SMEs. Stating the main problem for SMEs as access to finance, Bikpo says their guarantee facility assists financial institutions in covering the risks often associated with SMEs financing. AGF’s activities have improved the SME sector in recent...
Innovative MSME Finance Shows Promise in Djibouti
Only 5% of formal businesses in Djibouti receive bank financing, according to estimates . Banks in Djibouti are fairly liquid, but they are often unwilling to lend to micro, small and medium size enterprises (MSMEs) because of low appetite for risk and insufficient collateral. However, MSMEs are important for job creation and economic growth. To...
Consultation on how to improve SMEs’ access to finance through better public credit guarantee schemes
Credit guarantee schemes provide third-party credit risk mitigation to lenders by absorbing a portion of the losses on the loans made to SMEs in case of default, in return for a fee. CGS are popular partly because they combine a subsidy element with market-based arrangements for credit allocation. This allows less room for distortions in credit...
The Power of Social Underwriting: Kiva Zip, on why it pays for lenders to tap the wisdom of the crowd By Jonny Price
Part of Muhammad Yunus’ genius in creating Grameen Bank was his development of group-based guarantees among the women he was lending to in rural Bangladeshi villages. Whereas conventional loans look at financial data to measure credit risk (collateral, cashflows, credit scores, etc.), Grameen loans sought to assess borrowers’ characters, by tapping into the trust networks that already existed in their communities. It was social underwriting.Of course, social underwriting is not new. This is how banking used to operate - watch George Bailey, the “good” banker in the film ‘ It’s a Wonderful Life ’, for a great example. But today, these time-honored principles of banking based on character, community and trust can be combined with digital tools, expanding access to capital for borrowers that conventional lenders might reject as too risky, or too unprofitable. That’s what we’re doing at Kiva Zip , in a process we call Social Underwriting 2.0 .
APEC 2015 has SME and women's economic empowerment as priorities
see the attached opening speech of the Ambassador at the Symposium on APEC 2015 Priorities, at which I spoke today. Other speakers from the Philippines and APEC emphasized the importance of reaching out to women entrepreneurs. The US Department of Commerce senior official who's taken over the chair of the APEC SME Working Group for 2015/16 plans some exciting meetings on global supply chains, too. with Turkey and the G20/B20 agenda also with a strong SME focus, looks like it's going to be a busy year for the SME Finance Forum! matt
Turkey posts its G20 priorities, and SMEs are high on the list
Please see the link for the official announcement from the Turkish government. 2015 should be a very exciting one for SME finance and SME development. Turkey has been a leader in the SME agenda of the G20 since its inception, and has served as co-chair of the SME finance subgroup since SME finance became a priority for the G20 in 2009. As a technical partner to the G20's Global Partnership for Financial Inclusion, the SME Finance Forum looks forwarding to supporting the Turkish agenda during this coming year. Our readers may also see that Turkey will be forming a new global body to represent SMEs' own interests during 2015. Unfortunately the working name for this entity is "SME Forum", which risks some brand confusion, for obvious reasons!. We'll also be working with our G20 colleagues on this, hopefully with some resolution that helps build and grow this very worthwhile complementary institution, while avoiding too many cases of mistaken identity. matt