MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Provide Consulting Services to An Binh Joint Stock Commercial Bank (ABBANK) to Finance Small, Medium-sized Enterprises (SMEs) in Vietnam

The International Finance Corporation (IFC), an arm of the US-based World Bank Group, recently announced that it has signed a “project services agreement” with An Binh Joint Stock Commercial Bank (ABBANK), a Vietnamese commercial bank. Over the next 18 months, IFC will provide consulting services to ABBANK with the aim of improving the bank’s financial services for small and medium-sized enterprises (SMEs).

IFC’s East Asian Group Leader, Nguyen Hanh Nam, said, “We are confident that our support will help the bank build its position as an important lender to small and medium enterprises, which need help with accessing financing to expand their businesses and create more jobs for the people of Vietnam” [1].

As of 2013, ABBANK has total assets of VND 57.7 trillion (USD 2.7 billion). As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported net income of USD 1.4 billion, total assets of USD 84.1 billion, return on assets (ROA) of 1.8 percent and total investment mobilization of USD 38.1 billion.

By Jeff Pierce, Research Associate

About ABBANK

An Binh Joint Stock Commercial Bank (ABBANK), a Vietnamese commercial bank, was established in 1993. ABBANK has transitioned from strictly rural banking into the urban market. Partners of the institution include Maybank, which owns 15 percent equity, and Electricity of Vietnam (EVN). As of 2013, ABBANK has total assets of VND 57.7 trillion (USD 2.7 billion).

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported net income of USD 1.4 billion, total assets of USD 84.1 billion, return on assets (ROA) of 1.8 percent and total investment mobilization of USD 38.1 billion.

Sources and Additional Resources:

[1] IFC Press Release: “IFC Builds Capacity for ABBANK to Improve Financing for More Small and Medium Enterprises in Vietnam,” http://ifcext.ifc.org/IFCExt%5CPressroom%5CIFCPressRoom.nsf%5C0%5CE4C49B62A80F078085257E0E00318A53

MicroCapital Universe Profile: ABBANK

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=An+Binh+Joint+Stock+Commercial+Bank+%28ABBANK%29

MicroCapital Universe Profile: International Finance Corporation (IFC)

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