SME Banking

Small and medium enterprises (SMEs) are critical for the economic and social development of emerging markets. They play a major role in creating jobs and generating income for low income people; they foster economic growth, social stability, and contribute to the development of a dynamic private sector. As such, access to financial services is vital in developing a vibrant SME sector in any economy. In many emerging markets, however, access to financial services for SMEs remains severely constrained.

IFC's Role
IFC works to increase access of SMEs to financial services in developing countries by providing funding for equity, loans and mezzanine finance to financial intermediaries (FIs) focusing on SME financing and by building capacity of FIs and raising awareness on best SME Banking practices. Since 2000, IFC has shifted away from direct investments in SMEs to a more focused, efficient, and effective approach relying nearly exclusively on our FI investments to reach SMEs. This puts the Global Financial Markets department front and center in the Corporation’s strategy to reach this important market segment.

Achievements
As of end fiscal year 2009, IFC had a committed portfolio of $6.1 billion in 200 financial institutions that primarily target small and medium enterprises in developing countries. About half of these institutions also received advisory services from IFC. In total, these institutions had an outstanding portfolio of 1.3 million SME loans amounting to $90.6 billion.




Resources
SME Banking Brochure

SME Banking Knowledge Guide (October 2009)

2009 Reach Data Analysis Factsheets
- Global
- IDA
- Europe and Central Asia
- East Asia and Pacific
- Latin America and Caribbean
- Middle East and North Africa
- South Asia
- Sub-Saharan Africa

For more information on IFC’s SME Banking Investment and Advisory Services contact:

Paul Rusten | Email: PRusten@ifc.org
Ghada Teima | Email: GTeima@ifc.org