MICROCAPITAL BRIEF: International Finance Corporation (IFC)’s Global Small and Medium-Sized Enterprise (SME) Banking Program Trains Caribbean Bankers on Building Sustainable Banking Operations

The International Finance Corporation (IFC), a member of the World Bank Group, is working with the Japanese government, the Canadian International Development Agency and the Commonwealth Secretariat, a voluntary association of 54 countries which share goals in democracy and development, to train bankers in the Caribbean on sustainable small and medium-sized banking strategies. The initiative is part of IFC’s Global Small and Medium-Sized Enterprise (SME) Banking Program, which “helps banks in emerging markets assess the potential benefits of targeting the small business sector” [1]. 17 banking institutions and 30 bankers and trainers are participating in the four-day event. Those attending represent 10 countries in the Caribbean [1].

The program is covering “strategy and market segmentation, product design, credit risk management, and information management systems” and additionally is training members to educate others so that learning can continue after IFC is finished conducting the workshop [1].

By Julia Korn, Research Associate

About the International Finance Corporation (IFC):

A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.

About The International Finance Corporation Global Small and Medium-Sized (SME) Banking Program:

The International Finance Corporation Global Small and Medium-Sized (SME) Banking Program is an office of the World Bank Group’s International Finance Corporation (IFC) that works to increase access of SMEs in developing countries to financial services. It provides funding for equity, loans and mezzanine finance to financial intermediaries. It focuses on SME financing, building the capacity of financial intermediaries and raising awareness on SME Banking practices. At the end of 2009, IFC had a committed portfolio of USD 6.1 billion in 200 financial institutions that primarily target SMEs 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 USD 90.6 billion. In the Caribbean, IFC’s committed portfolio in 2009 was USD 1.3 billion in 50 financial institutions with new commitments in these financial intermediaries totaling USD 181.5 million.

Sources and Additional Resources:

[1] International Finance Corporation. “IFC Helps Banks Increase Small Business Access to Finance in Caribbean” on June 8, 2010. http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/9E0F516EC290A3E98…

MicroCapital Universe. The International Finance Corporation. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int…

MicroCapital Universe. The International Finance Corporation Global Small and Medium-Sized (SME) Banking Program. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The…

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