Policy & Regulation

Day 3 of the Global SME Finance Forum 2023 saw panel discussions and keynote addresses by thought leaders like Shri Chanchal Chand Sarkar, Economic Adviser, DEA, Ministry of Finance, India, Shri T. Rabi Sankar, Deputy Governor, RBI, Shri Ajay Seth, Secretary, DEA, Ministry of Finance, India, Ashwini Kumar Tewari, Managing Director, SBI, Ms. Nisha Nambiyar, Chief General Manager, RBI ,Mohamed Gouled, VP Global Industries, IFC, Magda Bianco, GPFI Co-Chair, Michael Jongeneel, CEO, FMO and Jane Prokop, SME EVP, MasterCard 

Mumbai, 13 September 2023 - The Global SME Finance Forum 2023 continued to ignite insightful discussions and foster collaboration among key stakeholders on its third day. This last day was an official side event of the G20 Indian Presidency.  

The event started with the welcome remarks by Shri Chanchal Chand Sarkar, Economic Adviser, DEA, Ministry of Finance, India who said, “In collaboration with esteemed leaders from the DEA and the Reserve Bank of India, we embark on a journey towards extraordinary outcomes. Our focus on critical global financial issues like financial inclusion, climate finance, and crypto assets underscores the need to empower small and medium enterprises. As we implement the G20 Financial Inclusion Action Plan, we are committed to accelerating the growth of SMEs and fostering a more inclusive, resilient, and sustainable financial system.” 

In his keynote, Shri T. Rabi Sankar, Deputy Governor, RBI, said "A robust MSME sector is the bedrock of sustained economic growth and job creation. Digital Public Infrastructure (DPI) empowers MSMEs, bridging the digital divide and unlocking boundless potential. The hurdles faced by MSMEs, such as limited access to credit, and delayed payments, can be efficiently overcome through digitization. With innovative credit solutions and digital ecosystems, we're poised to transform challenges into opportunities.”
He added, "The RBI Innovation Hub's pioneering effort to establish a frictionless credit public tech platform holds tremendous potential. This platform will usher in seamless access to credit by enabling the smooth flow of vital data for credit evaluations among diverse stakeholders." 

Addressing the Forum, Shri Ajay Seth, Secretary, DEA, Ministry of Finance, India, said, “The G20 leaders recognize the pivotal role of startups and MSMEs in driving sustainable and inclusive growth. Bridging the digital divide, including women's participation in MSMEs, is a key priority. The G20's commitment to advancing financial inclusion and productivity through DPIs is a testament to their dedication to fostering a thriving MSME sector. India, along with the SME Finance Forum and GPFI, is poised to collaborate and seize these opportunities for growth beyond G20 countries too." 

One of the pivotal topics addressed during the Global SME Finance Forum's third day was the need for an enabling environment for SMEs to access green finance. One panel in particular delved into the vital role that banks, development finance institutions (DFIs), and regulators play in crafting a framework that clearly defines "green" financing for SMEs. The conversation revolved around collaborative efforts to build an ecosystem that encourages and supports SMEs in adopting sustainable practices, showcasing real-world examples of successful initiatives that have aligned SMEs with environmentally responsible practices.

The day culminated in a thought-provoking discussion on gender equity in SME financing within the digital landscape. Panelists ardently explored how digital financial ecosystems can serve as a powerful tool for reducing biases against women entrepreneurs. The conversation emphasized the importance of addressing the specific needs of women in terms of capacity building, networking, and access to financial services. 

Commenting during the closing of the Global SME Finance Forum 2023, Mr. Shalabh Tandon, Regional Head of Operations & climate and Interim South Asia Director, IFC, extended thanks to everyone for transformative discussions over the past three days and said,” Digital ecosystems are change-makers, India's initiatives like UPI, Jan Dhan and Aadhaar, set a remarkable example. IFC, alongside partners, is dedicated to financial inclusion. We look forward to future Forums that build upon the momentum of this event. Together, through innovation and learning, we can shape a more inclusive and digitally empowered financial landscape for MSMEs so they can create more jobs and contribute fully to economic growth.” 

About International Finance Corporation (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 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. 

For more information, visit www.ifc.org

About SME Finance Forum
The SME Finance Forum was established by the G20 Global Partnership for Financial Inclusion (GPFI) in 2012 as a knowledge center for data, research, and best practice in promoting SME finance. As an implementing partner for the GPFI, the International Finance Corporation (IFC) was tasked with managing the initiative. The Forum operates a global membership network of +240 members that brings together financial institutions, technology companies, and development finance institutions to share knowledge, spur innovation, and promote the growth of SMEs. 

Discover the SME Finance Forum members: www.smefinanceforum.org/members/member-list  

About Small Industries Development Bank of India (SIDBI)
SIDBI, set up on 2nd April 1990 under an Act of Indian Parliament, is the Principal Financial Institution for Promotion, Financing and Development of the MSME sector. SIDBI has been playing a significant role in developing the financial services for MSME sector through various interventions including Refinance to Banks, Credit Guarantee programs, Development of the MFI sector, Contribution to Venture capital/AIF funds, MSME ratings, promoting digital lending ecosystem, etc. The Bank has proactively been working towards Energy Efficiency (EE) in MSMEs since 2005-06 using support of multilateral institutions like World Bank, ADB, GiZ, FCDO, JICA, AFD, KfW etc. for energy efficient projects. Furthermore, SIDBI has been touching the lives of citizens across various strata of society through its integrated, innovative, and inclusive approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly impacted the lives of Micro and Small Enterprises (MSEs) through various credit and developmental measures.  

To know more, check out www.sidbi.in

About State Bank of India (SBI)
State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector Banking and Financial services statutory body headquartered in Mumbai. The rich heritage and legacy of over 200 years, accredits SBI as the most trusted Bank by Indians through generations. SBI, the largest Indian Bank with 1/4th market share, serves over 48 crore customers through its vast network of over 22,405 branches, 65,627 ATMs/ADWMs, 76,089 BC outlets, with an undeterred focus on innovation, and customer centricity, which stems from the core values of the Bank - Service, Transparency, Ethics, Politeness and Sustainability. The Bank has successfully diversified businesses through its various subsidiaries i.e., SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, etc. It has spread its presence globally and operates across time zones through 235 offices in 29 foreign countries. Growing with times, SBI continues to redefine banking in India, as it aims to offer responsible and sustainable Banking solutions. 

To know more, check out sbi.co.in

***

Mumbai, India, September 14, 2023 - The 2023 Global SME Finance Award winners were announced during the Global SME Finance Forum 2023 in Mumbai, India. Across all categories, a record 165 applications were submitted from 120 different institutions. 30 applications were identified by an independent, expert panel of 85 judges as winners. The award ceremony was sponsored by the State Bank of India. 

 

To learn who the winners are, please visit https://www.smefinanceforum.org/awards-2023

 

The Global SME Finance Awards 2023 recognize financial institutions and fintech companies for their outstanding achievements in delivering exceptional products and services to their SME clients. Organized by the SME Finance Forum and endorsed by the G20’s Global Partnership for Financial Inclusion (GPFI), the Global SME Finance Awards provide an opportunity for institutions to showcase and share their good practices and knowledge. 

 

Launched in 2018 and now in its sixth year, the Global SME Finance Awards capture the effective and successful practices of financiers, honoring the innovative products and services for SME clients that have achieved impressive results in expanding finance and services to SMEs and the institutions that undertake those efforts. This year, there were four award categories: 1) SME Financier of the Year, which was broken down by region, 2) Product Innovation of the Year, 3) Best Financier for Women Entrepreneurs and 4) Sustainable Bond of the Year, which was broken down into Green, Social and Sustainability Bonds of the year.  

 

This year’s competition was the second in partnership with the IFC’s Green Bond Technical Assistance Program (GB-TAP), awarding meritorious institutions with the distinction of Sustainable Bond of the Year.  The winning entries represent the growing number of financial institutions that recognize that Green, Social and Sustainability Bonds have a crucial role to play in tackling the ongoing climate crisis, helping financial institutions achieve their Sustainable Development Goals. 

 

For the third year in a row, entries from IDA and fragile and conflict affected situations were given additional consideration for working in some of the most difficult operating environments, both highlighting the needs and challenges of serving SMEs in these areas and illustrating what is possible despite the complexities faced. 

 

Matthew Gamser, CEO of the SME Finance Forum said, “Every year sees more applications from more countries, and this year was our biggest increase ever. The competition also gets tougher every year. All who've been recognized in any way should be very, very proud. This competition makes me very positive that we are on the right track to greatly narrow the SME finance gap.” 

 

Qamar Saleem, the Incoming CEO of the SME Finance Forum said, “I am delighted to see such great SME finance initiatives highlighted through the awards. While all applicants are winners in their own rights, I want to give a special congratulations to awards recipients for leading the way in the industry. By supporting SMEs, we are not just providing access to financial services, we are also changing lives!” 

 

Magda Bianco, GPFI co-chair said, "I continue to be amazed and impressed by the number and the quality of the applications that come in each year. This year has seen an increase in both the total number and diversity of applications, and I can’t wait to learn of the winners. I want to congratulate all the institutions that took part in this year's competition, and I encourage all contestants, winners or not, to share your experiences in the G20 Database of Innovative Digital Finance cases. The SME Finance Forum team would be happy to assist in this." 

 

For a full list of the winners in each category and Honorable Mentions, please go to the Global SME Finance Awards 2023 website. 

------------------------------

About the SME Finance Forum 
The SME Finance Forum works to expand access to finance for small and medium businesses. The Forum operates a global membership network that brings together financial institutions, technology companies, and development finance institutions to share knowledge, spur innovation, and promote the growth of SMEs. Established in 2012 by the G20 Global Partnership for Financial Inclusion, the SME Finance Forum is managed by IFC. For more information, visit http://www.smefinanceforum.org

 

The Roadmap for Enhancing Cross-border Payments is a priority initiative of the G20. Much has been accomplished during its first two years, including agreement on a set of outcome targets endorsed by the G20 in October 2021. The work in 2021 and 2022 has focused on establishing the foundational elements of the Roadmap and beginning to pivot from stocktaking, analysis and guidance to practical projects to improve existing systems and develop new ones.

 

This report summarises progress during the second year of the roadmap, bringing together in one place the work under the roadmap’s wide-ranging but interconnected set of initiatives.

 

Islamic Development Bank Group (IsDBG) joins the SME Finance Forum global network to enhance coordination with international institutions for more impactful interventions benefiting its member countries and the Muslim communities worldwide.

 

Washington D.C., January 13th, 2021- Islamic Development Bank Group (IsDBG), including ICIEC, IRTI, ISFD and ITFC, joins the SME Finance Forum as the newest member of our global membership network. Our members are SME Financing experts from 80+ countries who share the common goal of expanding access to finance to small businesses worldwide, through knowledge exchange and innovation. 

 

“40 percent of small and medium businesses worldwide struggle to get access to the credit and capital that they need to grow their enterprises. We are delighted to welcome Islamic Development Bank Group (IsDBG) to our network of 200 members who are working to eliminate the finance gap for SMEs,” said Matthew Gamser, CEO of the SME Finance Forum. 

 

To see all SME Finance Forum members, please visit: https://www.smefinanceforum.org/members/member-list

 

IsDBG is one of the world’s most active MDBs groups, and global leaders in Islamic Finance. IsDB has a AAA rating, operating assets of more than USD 16 billion and subscribed capital of USD 70 billion. The Group brings together 57 member countries across four continents - touching the lives of 1 in 5 of the world’s population.

 

“At the Islamic Development Bank Group, we equip people with the tools they need to build a sustainable future for themselves, their communities and their countries, putting the infrastructure in place to enable them to reach their full potential. As a member of the SME Finance Forum global network, we aim to build collaborative partnerships between communities and nations,” said Dr. Bandar M. H. Hajjar, President of IsDBG.

 

About SME Finance Forum  

The SME Finance Forum was established by the G20 Global Partnership for Financial Inclusion (GPFI) in 2012 as a knowledge center for data, research, and best practice in promoting SME finance. As an implementing partner for the GPFI, the International Finance Corporation (IFC) was tasked with managing the initiative.

 

About Islamic Development Bank Group 

The Islamic Development Bank (IsDB) is a Multilateral Development Bank (MDB) established in 1974, working to improve the lives of those it serves by promoting social and economic development in its Member Countries and Muslim communities worldwide, delivering impact at scale. IsDB is a global institution, headquartered in Jeddah, Saudi Arabia, with eleven Regional Hubs in Bangladesh, Egypt, Indonesia, Kazakhstan, Morocco, Nigeria, Senegal, Suriname, Turkey, Uganda and United Arab Emirates. The IsDB Group comprises five entities; The Islamic Development Bank (IsDB), the Islamic Corporation for  the Development of the Private Sector(ICD-PS), the Insurance of Investment and ExportCredit (ICIEC), the Islamic Research andTraining Institute(IRTI),  the Islamic Solidarity Fund for Development (ISFD) and the International Islamic Trade Finance Corporation (ITFC).

 

Media Contact    

Carina Carrasco   

ccarrasco@worldbank.org

 

IFC had a strong year in spite of the pandemic. They committed $22 billion in long-term finance—an almost 15 percent year-on-year increase—including $11.1 billion invested for their own account. In addition, short-term financing commitments, including trade finance, totaled $6.5 billion: a 12 percent increase compared with the previous fiscal year. IDA-eligible and fragile countries accounted for 25 percent of IFC’s own-account long-term finance commitments, while climate business accounted for 30 percent. IFC also committed $1.8 billion in long-term finance for financial institutions specifically targeting women.

 

At the same time, they stepped up to help the world fight the pandemic. IFC rolled out an $8 billion fast-track COVID-19 financing facility to help keep companies in business and preserve jobs. Through the facility, they provided direct lending to existing clients who demonstrated a clear impact on their business by the pandemic, as well as support to client financial institutions so they could continue lending to small and medium businesses affected by the COVID-19 outbreak.

 

As of September 2020, $3.9 billion of the facility had been committed, including the entire $2 billion allocated under the trade-finance envelope, helping to keep liquidity flowing to businesses that depend on trade, especially micro, small, and medium enterprises. We also laid the groundwork to deploy the innovative Global Health Platform, aimed at increasing access for developing countries to critical health-care supplies such as face masks, ventilators, and potential vaccines, and helping those countries boost their own manufacturing capacity.

 

Importantly, the crisis encouraged IFC to transform the way they do business. They learned to work virtually, such as by conducting virtual appraisals and portfolio supervisions. For the fast-track COVID-19 facility, IFC put in place a revamped decision-making framework that maximizes speed while screening for key risks, with the fastest transaction signed in a record 29 days. They also introduced streamlined portfolio management processes, helping them respond to client requests for standstills in an agile fashion.

 

In FY20, they started the implementation of their new approach to equity investing, improving our handling of equity investments “from cradle to grave” and bringing a much sharper focus on macro-economic issues in new business analysis and portfolio decision-making. With this, they integrated the Asset Management Company (AMC) into IFC and realigned its role as the mobilization platform for IFC in relation to equity. They have also made progress on operationalizing our Green Equity in Financial Intermediaries (FIs) strategy—a proactive approach to help FIs green their portfolios and significantly reduce their exposure to coal assets.

 

Read the full report 

Washington D.C., November 30th, 2020- We are pleased to welcome SMERA to the SME Finance Forum. Our global membership network consists of leading financial institutions, innovative financial technologies companies, and development finance institutions who come together to share knowledge, spur innovation, and promote the growth of small and underserved businesses. 

 

“At SME Finance Forum we are committed to helping small businesses get access to capital needed to grow and sustain their enterprise. Our membership network forms a close-knit community of industry experts who share a common purpose of helping SMEs. We are delighted to have SMERA as the newest member of the Forum. We truly value their contributions.” said Matthew Gamser, CEO of the SME Finance Forum.   

 

SMERA Gradings and Ratings Pvt. Ltd was set up as the world’s first MSME-focused rating agency under an initiative of the Ministry of Finance, Govt. of India and the Reserve Bank of India. It has an enviable record of assigning more than 50,000 ratings since its inception. In 2017, they launched the SMERA terminal, a fintech platform for connecting lenders and MSMEs. 

 

“We want to ensure that MSMEs have an equal playing field to understand its strengths and weaknesses and overcome perceived uncertainties in lending decisions. With the support of the SME Finance Forum and its global network, we believe we can expand our knowledge and understanding of how to support these small businesses and build partnerships that can enable MSME growth in India,” Sankar Chakraborti, Director at SMERA.

 

 

About SME Finance Forum    

The SME Finance Forum was established by the G20 Global Partnership for Financial Inclusion (GPFI) in 2012 as a knowledge center for data, research, and best practice in promoting SME finance. As an implementing partner for the GPFI, the International Finance Corporation (IFC) was tasked with managing the initiative. 

 

About SMERA 

SMERA Gradings and Ratings Private Limited is a wholly owned subsidiary of Acuité Ratings & Research Limited dedicated to providing SME ratings & grading services to MSMEs. The company began its operations in year 2005 as SME Rating Agency of India Limited, a joint initiative of Small Industries Development Bank of India (SIDBI), Dun & Bradstreet Information Services India Private Limited (D&B) and leading public and private sector banks in India.

 

Media Contact 

Carina Carrasco   

ccarrasco@worldbank.org