Bank Financing to Small and Medium-Sized Enterprises (SMEs) in Colombia
The objective of this paper is to shed light on current trends and policy challenges in the financing of small- and medium-sized enterprises (SMEs) by banks in Colombia. The paper is motivated by the well-documented financing gap for SMEs, whose ca...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/01/8956897/bank-financing-small-medium-sized-enterprises-smes-colombia http://hdl.handle.net/10986/6486 |
| Summary: | The objective of this paper is to shed
light on current trends and policy challenges in the
financing of small- and medium-sized enterprises (SMEs) by
banks in Colombia. The paper is motivated by the
well-documented financing gap for SMEs, whose causes are
complex and multi-dimensional. Based on data collection and
interviews with the authorities, a representative sample of
banks, and other relevant entities, the authors analyze the
evolution and characteristics of this market in recent
years. Bank financing to SMEs is becoming a strategic
segment for Colombian credit institutions. The current
business and risk management models for SME lending are
still relatively underdeveloped, but greater sophistication
is expected as the market matures. Important institutional
and policy constraints to SME lending remain, but are not
yet binding. In order to address these constraints before
they "begin to bite", the authors identify and
describe a potential policy reform agenda. |
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