SBP I NITIATIVES FOR P ROMOTION OF SME F INANCING IH& SME Finance Department State Bank of Pakistan, Karachi.

Slides:

Advertisements

Similar presentations

European Commission Regional Policy Conclusions Workshop 2 Sustainable communities, entrepreneurship and micro-credit.

Advertisements

© International Finance Corporation The Importance of the SME Segment to Banks in Developing Countries A Perspective New Technologies for Small- and Medium-Size.

Andrew McCartney: Lead Global Specialist, SME and Gender Finance, FIG Advisory Services Sri Lanka, October 2014 Global and Regional Insights into Supporting.

Established in 1978 as a public shareholding company One of the fastest growing banks in Jordan; grew at double or triple the market rate over the last.

EBRD: Agro Leasing Opportunities December 2014Ulaanbaatar Matthieu Le Blan, Head of Office.

DEPARTMENT OF TRADE AND INDUSTRY INCREASING ACCESS TO FINANCE.

APECCAM Cameroon Bankers’ Association Mathieu Mandeng PRESIDENT.

SBP’s Initiatives for SMEs Financing. Initiatives Issuance of a separate Prudential Regulation (PRs) for SME financing. Help in capacity building in human.

Strategic Banking Corporation of Ireland Dublin Chamber of Commerce May 1st 2015.

1 Role of Service Sector in the Economy of Nepal Presentation by Dr. Ramesh C. Chitrakar Expert 1 At Second National Stakeholder Workshop.

1 An Asian Investment Fund: What it will do and Why needed? Yung Chul Park Research Professor And Director Center for International Commerce and Finance.

1 Focused and Coordinated Development of Small and Medium Enterprises (SMEs): The Malaysian Experience Conference on SME Financing: Issues and Strategies.

Making Small Business Finance Profitable Peer Stein, Banking Advisory Group December 4, 2002 Key Lessons Learned about Applying New Technologies to SME.

Using alternative financing tools to improve agribusiness finance by Yan Zhang UNCTAD Caribbean Rural Development Briefings

Rwanda Business Seminar

Mortgage Finance Opportunities and Challenges By Taimur Afzal, Chairman ASSOCIATION OF MORTGAGE BANKERS (AMB) March 25th

Innovation and SME Finance Matthew Gamser CEO, SME Finance Forum CUPID Conference February 2015.

Is a Financial Institution controlled by the Italian Ministry for Economic Development, participated by leading Italian Banks and Confindustria – the.

Eng. Osama Al-Mobarak Director of Kafalah Financing Guarantee Program, SIDF (K.S.A)

FORMAL RURAL FINANCE INSTITUTIONS AND THE STATE OF MICROFINANCE BANKS A PAPER PRESENTED BY THE DIRECTOR OF DEVELOPMENT FINANCE DEPARTMENT OF THE CENTRAL.

Housing Finance in Pakistan

Step into Careers in Banking Friday 3 February Registration and refreshments 09.20Welcome Jenny Barber, Head of Education and Careers, Financial.

MBF-705 LEGAL AND REGULATORY ASPECTS OF BANKING SUPERVISION OSMAN BIN SAIF Session: THIRTY.

Imran Ahmad Additional Director Infrastructure, Housing & SME Finance Department State Bank of Pakistan.

February 2015 The Export Credit Agency of México 1 Mexico City.

Union SME Financing – Is it Really a …. ?. SME Definition (SBP) Type of Business a) Fixed Assets Excluding Land & Building (Rs.M) b) Employment.

SME Credit Bureau in Singapore Serving Critical Information Needs For Credit Manager Dun & Bradstreet (Singapore) Pte Ltd 25 th October 2006 The BIIA Business.

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION The Sixth (6 th ) Meeting of the SME and enterprise policy Subgroup for the EU-Russian Dialogue.

 Cluster development as an approach to industrial development has been successful in countries like China, India, South Korea, Malaysia  In at least.

Financial Markets & Credit institutions. Practice Variety of teaching methodology Students participation Fair grading Care about st Quizz or viva Feedback.

Support of small and medium-sized enterprises. 2 Importance of SMEs Business environment Business environment Structural changes Structural changes Stabilizing.

European Investment Bank 1 The Risk Sharing Finance Facility (RSFF); -innovative finance for innovation- 6 th WIPO FORUM ON IP and SMEs Cardiff, 10th September.

IDB: Financing with the Private Sector Coverage:  Project Finance  Corporate Finance  Capital Markets  Trade Finance Presence in the Market:  Operations.

SOURCES OF FINANCE FOR ECONOMIC GROWTH CREDIT FINANCING FOR THE PRIVATE SECTOR JUNE 8 TH 2010 Robert Wright.

Group II Presentation on Products, Services & Delivery Channels.

Innovations - SME Financing. 9% of GDP 40% of exports 45% of industrial employment More than 26 mn units SME Market Contribution to banking Contribution.

Agribusiness and Rural SME Lending. Profile of Kosovo Land area: 10,908 km² Capital City : Pristina - pop. 400,000 Population Description: approximately.

SBP Vision SBP Act to provide for the constitution of a State Bank to regulate the monetary and credit system of Pakistan and to foster its growth in.

REPUBLIC OF BELARUS INTERNATIONAL ENTREPRENEUERSHIP FORUM Increasing Competitiveness of the Belarusian Economy - Access to Finance of Households and Firms.

IFC: HELPING MFIs UPSCALE VSE/SME WORKSHOP Prague November 5, 2015 MFIs UPSCALING.

Banking Risks and Regulation. Changes in Indian Banking.

MINISTRY OF ECONOMY Department of Economic Strategy Supporting innovative SMEs in Poland Warsaw, 26 November 2002 by Elżbieta Wolman, Economic Strategy.

IFC AT A GLANCE FINANCE OPPORTUNITIES FOR THE PRIVATE SECTOR.

AKHTIAR AHMED JOINT DIRECTOR IH&SME FINANCE DEPARTMENT STATE BANK OF PAKISTAN JANUARY 26, 2016 SBP ROLE FOR PROMOTION OF SME BANKING SME BANKING 1.

Finance (Basic) Ludek Benada Department of Finance Office 533

Rural Banking - Background Pakistan has great potential in agriculture. About 27% of the total 80 million hectares of the country is under cultivation.

Structure of Banking Industry

SME Funding Winston Smit 24 November [Southern Africa/Forests] Slide 2 Key Strategic Drivers for SME in Forestry Sector  Forestry Sector BBBEE.

Trend in Credit Growth in last 3 years Rs. Lac Cr Growth %: Source: RBI-Deployment of Gross Bank Credit by Major Sectors.

Private & Confidential NOV 2014 Evolving Role & Relevence of Asian Exim Banks – Path to 2020 Export – Import Bank of Thailand.

SME Financing – A case of CRDB Bank PLC (Tanzania) Rehema Mhina Shambwe Senior Relationship Manager -SME DANIDA Development Day, Copenhagen 8-9 June.

Danida support to the microfinance industry. Overall objectives of Denmark’s development cooperation Overall objective To combat poverty and promote human.

Mortgage Finance Opportunities and Challenges By Taimur Afzal, Chairman ASSOCIATION OF MORTGAGE BANKERS (AMB) March 25th

National Financial Inclusion Strategies (NFIS) National Financial Inclusion Strategies play major roles in shaping policies and regulatory frameworks.

Safeguarding Agriculture production through access to finance and insurance DAWN Pakistan Food & Agri Expo Conference 2016 PRESENTATION BY: Mr. Noor Ahmed.

SME Financing in the Middle East Sibel Beadle 11 May 2016.

Role of NBFCs in Financial inclusion

Non-Financial Advisory Services

“Agribusiness Financing: Innovative Financial Solutions”

Commercial Banking : Structure and Evolution.

PRESENTATION TO THE PORTFOLIO COMMITTEE ON HOUSING

LOANS AND FINANCING PROSPECTS FOR FARMERS

by Imran Ahmad Additional Director, State Bank of Pakistan

New Approaches to SME and Entrepreneurship Financing

Priority Sectors for Inclusive Economic Growth

Meeting with SME Heads of Banks

He World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF). The president of the World Bank is, traditionally,

UNDERSTANDING FINANCIAL ECOSYSTEM AND MICROFINANCE

PRESENTATION TO THE PORTFOLIO COMMITTEE ON TRADE AND INDUSTRY

R.C. Giltner Services, Inc.

Presentation transcript:

SBP I NITIATIVES FOR P ROMOTION OF SME F INANCING IH& SME Finance Department State Bank of Pakistan, Karachi

2 SME F INANCING T REND …. Borrowers is ‘000’Amount in Billions Dec-04Dec-05Dec-06Dec-07Dec-08Dec-09Dec-10Dec-11Dec-12Dec-13 Dec- 14 SME Outstanding % Share in Total O/S 17.5%17.7%17.0%16.2%11.7%10.3%9.6%8.3%6.8%6.5%6.3% SME Borrowers % Share in Total Borrowers 3.1%3.8%3.7%3.9%4.7%4.8%5.4%4.5%3.7%4.0%4.2% NPLs - SME Sector % Share in Total NPLs 16.7%24.3%22.6%20.5%20.6%18.6%19.4%16.0% 15.5%15.4% Note: Dec-08 and onwards is the aggregate of Banks & DFIs

T OTAL F INANCING -DFI S DFIs Total financing Amounts in Million Mar-14Jun-14Sep-14Dec-14 Pakistan Kuwait Investment Company Limited Pak Libya Holding Company Limited Pak Oman Investment Company Limited Saudi Pak Industrial & Agricultural Investment Company Limited House Building Finance Company Limited Pak Brunei investment Company Limited PAIR Investment Company Limited Pak-China Investment Company Limited

Q UARTERLY SME F INANCING -DFI S DFIs SME Financing Amt in Millions Mar-14Jun-14Sep-14Dec-14 Pakistan Kuwait Investment Company Limited Pak Libya Holding Company Limited 0.00 Pak Oman Investment Company Limited Saudi Pak Industrial & Agricultural Investment Company Limited House Building Finance Company Limited Pak Brunei investment Company Limited PAIR Investment Company Limited 0.00 Pak-China Investment Company Limited

SME F INANCING AS PERCENT OF TOTAL FINANCING DFIs SME Financing as percent of Total Financing Mar-14Jun-14Sep-14Dec-14 Pakistan Kuwait Investment Company Limited 3%1% Pak Libya Holding Company Limited 0% Pak Oman Investment Company Limited 1% Saudi Pak Industrial & Agricultural Investment Company Limited 0%1% 0% House Building Finance Company Limited 1%0% Pak Brunei investment Company Limited 1%3% 2% PAIR Investment Company Limited 0% Pak-China Investment Company Limited 2%0% 5

S HARE OF B ANKS IN SME F INANCING 6

7 S TATE B ANK ’ S R OLE 1.Revision in SME PRs 2.Secured Transaction Framework 3.Implementing Supportive Financing Schemes for SMEs i.Credit Guarantee for Small & Rural Enterprises. ii.Refinancing schemes for SMEs iii.Mark up Subsidy and Guarantee Facility for the Rice Husking Mills in Sindh 4.PM Youth Business Loans Programme 5.Capacity Development Measures for Banks 6.Cluster studies of important SME clusters

8 N EW I NITIATIVES IN P IPELINE  Introduction of Indicative Targets’ Regime  Launch of Financial Innovation Challenge Fund  Launch of Funding Facility for banks/DFIs for availing advisory services for diagnosis and then re-vamping SME Banking portfolio  Financial Literacy of SMEs  Data Enrichment – New PRs, District-wise  SME Finance details from banks through a questionnaire/survey  NPL Study  Indirect Exporters (EFS)  National Financial Inclusion Strategy

W HAT DFI S NEED TO DO IN ORDER TO CAPITALIZE ON THE OPPORTUNITY Strategy & Segmentation Dedicated SME banking strategy & business model Adopt specific market segmentation approaches. Effective branding and marketing of SME banking product and services. Product & Services Tailor existing corporate & retail banking products Build product programs Offer non-borrowing solutions. (Cash Management, payroll Management, payment collection, & trade finance solutions Sales & Delivery Introduce new SME Banking model SME specific branches in cluster areas. Use alternate delivery channels. (Internet banking, Mobile Banking) Advisory Services Provide Advisory Service to SMEs to aid and facilitate their growth. Organization and Systems Incorporate training into organizational framework to increase staff knowledge about SME Banking products. Risk Management Adopt better & more sophisticated methodologies for risk management. (behavioral scoring, credit scoring, cash flow based lending etc).