IFC, World Bank Institute help banks to extend financial access to small businesses

Microfinance Focus, Jan 30, 2010: IFC and the World Bank Institute are helping bankers develop financial products to improve access to finance for small and medium enterprises.

IFC, the investment arm of the World Bank, in collaboration with the government of Japan and the World Bank Institute, organized training for bankers in Dhaka from January 25 to January 28.  Thirty three bankers and trainers from 20 institutions from Nepal, Bhutan, Sri Lanka, India and Bangladesh participated in the program, which included sessions essential to building a sustainable SME banking business such as product design, credit risk management, and support functions.

Small and medium enterprises, accounting for more than 90 percent of registered companies in the world, are a major driver for economic growth and job creation.  Their role is even more important in the post-crisis period.  Yet small businesses often lack access to financial products and services, especially in developing countries.  IFC advises financial services providers on how they can profitably develop operations for small and medium businesses and increase their access to financial services.

“Supporting SMEs fosters sustainable economic growth and creates jobs,” said Ian Crosby, Manager, IFC Advisory Services in South Asia.

“In many countries the majority of jobs are provided by SMEs.  They are vital  to national economies and need access to financial services to increase productivity of their business, develop new markets, and hire more people.  said Peer Stein, Global Business Line Leader of IFC’s Advisory Services in Access to Finance. “These trainings provide banks working with SMEs the specific skills and knowledge to implement or enhance their SME Finance programs.

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