Financial Institutions Priorities
IFC's Priorities in Financial Institutions
WORKING WITH LOCAL FINANCIAL INTERMEDIARIES ALLOWS IFC TO SUPPORT FAR MORE MICRO, SMALL, AND MEDIUM ENTERPRISES THAN WE WOULD ON OUR OWN.
IFC is committed to the World Bank Group goal of achieving universal access to finance by 2020.
In order to do this, IFC works with about 800 financial institutions with products including investment and advisory support for microfinance, insurance, loans to small and medium enterprises and women-owned businesses, and low- and medium-income mortgages.
Our work in more than 100 countries has helped strengthen financial institutions and systems, reinforcing responsible finance, enabling them to play a constructive role in economic growth, and introducing environmental and social standards in many clients for the first time.
IFC clients, directly or indirectly, were able to provide 7.6 million loans to small businesses worth a total of $243 billion, and 51 million microloans to individuals, worth $59 billion in 2015.
Our expertise and advice help our clients address systemic issues such as risk management, corporate governance, and the introduction of environmental and social standards. We also encourage financial institutions to become more involved in strategic sectors that are important to the development agenda, including women-owned businesses, trade finance, climate change, and agri-finance, and underserved regions such as fragile and conflict-affected states.
IFC WORKS WITH FINANCIAL INTERMEDIARIES TO SUPPORT:
Micro, small, and medium enterprises play a major role in creating jobs and boosting prosperity for low income people—fostering economic growth, social stability, and the development of a dynamic private sector. Having adequate access to finance is fundamental for these companies to flourish.
Products such as microinsurance, agricultural insurance, and housing loans are essential to help prevent people slipping back into poverty and to improve overall quality of life. Developing local capital markets also helps provide funding to local businesses.