Why Banks in Emerging Markets Are Increasingly Providing Non-financial Services to Small and Medium Enterprises
Banks in emerging markets are increasingly providing non-financial services to their SME clients, typically consisting of information sharing, training and consultancy. This study, published by IFC in partnership with the Austrian Government, is th...
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| Language: | English en_US |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/988801468163454790/Why-banks-in-emerging-markets-are-increasingly-providing-non-financial-services-to-small-and-medium-enterprises http://hdl.handle.net/10986/27115 |
| Summary: | Banks in emerging markets are
increasingly providing non-financial services to their SME
clients, typically consisting of information sharing,
training and consultancy. This study, published by IFC in
partnership with the Austrian Government, is the first to
explore reasons behind this trend, finding that banks'
key motivations include attracting and retaining customers,
and strengthening portfolio quality. The report consists of
an overview followed by case studies of three banks, namely
Türk Ekonomi Bankasý (TEB), Standard Chartered Bank (SCB),
and ICICI Bank. It is estimated that there are 365 to 445
million formal and informal micro, small, and medium
enterprises, with a subset of 25 to 35 million formal SMEs,
in the developing world. Of these, 70 percent do not use
external financing from financial institutions, although
they are in need of it. Approximately 85 percent suffer from
credit constraints. |
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