Benchmarking SME Banking Practices is an IFC initiative which aims to identify key success factors and highlight links between performance and business models, processes and tools adopted by participating banks. In it's current phase, which began in 2005, the project has focused on qualitative and quantitative benchmarking studies in five banks in OECD countries and six emerging market banks located in US, EU, Latin America, Asia and Australia.
Benchmarking SME Banking Practices is an IFC initiative which aims to identify key success factors and highlight links between performance and business models, processes and tools adopted by participating banks. In it's current phase, which began in 2005, the project has focused on qualitative and quantitative benchmarking studies in five banks in OECD countries and six emerging market banks located in US, EU, Latin America, Asia and Australia.
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Benchmarking SME Banking Practices is an IFC initiative which aims to identify key success factors and highlight links between performance and business models, processes and tools adopted by participating banks. In it's current phase, which began in 2005, the project has focused on qualitative and quantitative benchmarking studies in five banks in OECD countries and six emerging market banks located in US, EU, Latin America, Asia and Australia.
Direitos autorais:
Attribution Non-Commercial (BY-NC)
Formatos disponíveis
Baixe no formato PDF, TXT ou leia online no Scribd
‘September 2007 vous coe‘SME Banking and IFC's Role
‘Small and medium enterprises (SMEs) are major contebuors ro
ployment in many pars of the world. However, their financial needs
underserved and this continues to bea constant to thei growth. Banks)
have traditionally served the corporate and lage business segments ofthe
view SMEs asa challenge div to information symmen; kick of collateral ansNbe
higher eos of serving smaller tansetions. However, as corporate banking margh
‘cntnne to shrink and increasing fsa restraint lowers yields on government hor
rowing, banks have begun to aes che
‘opporunites chat SMES offer in vrs
‘of growth and porfoio diversification
IFC Outstanding Portfolio in Financial stitutions
ee sve
Tn recent years IFC, a member of the
‘World Bank Group has shifed isin
‘valent with SMEs from dret inves
rent in enterprises o mainly channeling
fonds through financial intermediaries
IFC’ micro, small and mes enterprise
(MSME} porsolio represents 24 percent
‘ofits woul ponflio and 56 pereent of
its financial marke portfolio. Commit
‘meni 1 financial insenatons forthe
MSME sector reached $1.9 billion in
fiscal year 2007. As of Decernber 2006,
IFC financial institutions clints accounted for about five millon MSME leans for
toa value of $57.1 billion. Inadition tit investments, IFC financial markers
‘echnical asistnce activites in SME banking include creating SME operations,
bank downscaling, cling up microfinance institutions and cresting leasing oper
sions and product
Benchmarking SME Banking Practices
Benchmarking SME Banking Prasices ian IFC initiative which sims to identify
key suceas factors and highligh links hrween performance and business models,
processes and tools opted
oi by paticipaing bans, Ta ins
Sy I RET BEM current phase, which began in
ac 2005, the projet as focused
fon qualitative and quanti
benchnaing ste ative bank in OCD coun ar six retging ay
banks locate inthe US, EU, Latin America, Asia, and Australia,
‘out, Ina second phase, the core et of benchmarks
merging makes fiancal sitions interes ps the cree
|| wae + room ale‘SME Segment Offers
Growth & Profit,
‘The banks surveyed during the benchmarking
exert highlight fierce competition in the corpo-
ace ad seal segments a a ke factor in eri
the SME matket, The SME market is viewed a
an untapped segmene with margins for groweh
given shrinking margins inthe comporate stor
and inereed competition in teil banking. In
adltion, SME banking i cen as high margin
business with 2 srong potential for profitability and
inmportanecros-selling and porfalio divesifcation
‘opportunites. The banks surveyed reveal hat SME
traning i profitable bovines despce challenges
such asthe need fr buy-in ac hoch management
and operational stafflevels and the neat adapt
products and develop IT coos. As highlighted in
ROA SME Vers Total Bank page 4, SME portio-
ios generat higher rerurn on assets (ROA) than
total bank portfolios. Four ou of five bales noted
higher porclio and income groweh forthe SME
scgment chan the cotl bank.
Definitions of SMEs Vary
‘The paticpatng banks’ definitions of SMEs and
the rtria used to categorize them vary con-
siderably, Most banks not that loan siz is aoe
an adequate criteria and indicate tha they have
cevalved more sophisticated criteria bated on thor
‘ough analysis oftheir SME clients. Nine ofthe 1]
surveyed banks ue den intinse characteristics
vallenges in SME banking are similar for
PO Re iar ue Com anicdy
Banks are still refining their business models.
1 this primary criteria. ‘The banks suggesed that
they define SMBs using da easily collectable by
font office staff and based on: (1) whether they
are asset customers or liability only customers and
(2) eisk/erum profes which enables the baak to
determine potential reveas, adjust cast to seve,
and tnakinize profi.
Higher Unsecured Lending in OECD
Unsecured lending in che inal unas eyinent
is higher overall in dhe banks in OECD countries
‘compared to emerging marker banks. Unsecured
leading is percent forthe OECD banks ana 3
|yzed compared co 36 percent on average for thei
emerging marker counterparts, Thi i likely de to
the availabilty of beter information on clients and