cat/policy-and-financial-infrastructure
Small and medium-sized enterprises (SMEs) play a crucial role for employment, job creation, investment, innovation and economic growth around the world. They account for about 90% of businesses and more than 50% of employment worldwide, and are therefore crucial for the recovery of the world’s economy. Considering this important role, it is critical to ensure that viable SMEs around the world have access to the credit they need to expand.
The Basel Committee on Banking Supervision released a second consultative paper on the Standardized Approach to Credit Risk on December 10 that withdrew proposals late last year that would have sharply increased risk weights and capital requirements for a broad range of bank credit to SMEs.
This report seeks to identify key capital markets instruments that can help mobilize institutional investors to infrastructure and small and medium enterprises (SME) financing in emerging market economies (EMEs). EMEs face financing gaps in infrastructure and SMEs that if not addressed can stifle growth and affect shared prosperity. This report is structured as follows: this section explains the objective of this report and the scope of the work undertaken.
Europe’s SMEs are heavily reliant on bank loans with limited access to other types of finance. Yet equity finance is often more suitable for startups and growth companies and is available from diverse sources, such as family and friends, business angels, crowdfunders, venture capitalists and public markets. But the path to accessing this type of finance is not always clear…
IFC, a member of the World Bank Group, and the Netherlands Ministry of Foreign Affairs today announced an initiative to provide much needed financing and advice to small and medium enterprises (SMEs), especially to those in difficult to reach segments and in fragile markets, by lending through emerging market banks and other financial intermediaries.
We are faced with a big challenge. The recent economic downturn eliminated 67 million jobs globally and saw trillions of dollars of wealth disappear. To add to this, emerging countries need to create another 600 million jobs by 2020, mainly in Asia and Africa, just to keep employment rates constant. So how can we generate employment and spur economic growth?
Think small.
Date: 10 September 2015
Location: Antalya, Turkey
Financial Infrastructure Week 2015 will consist of a series of plenary and break-out sessions on the topics of Payment Systems/Remittances, Credit Reporting, Secured Lending/Collateral Registries and Insolvency/Debt Resolution. During the event experts, regulators, practitioners and private sector representatives from financial services institutions, as well as the relevant advisory services providers with global expertise, will discuss the most relevant topics in their respective arenas and disseminate best practices and international standards.
On June 1 and 2, 2015 the G-20 Global Partnership for Financial Inclusion hosted a workshop on "Financing Entrepreneurship - Innovative Solutions". The event had 165 attendees from 45 countries. This included leaders from banks, fintechs, donor institutions and governments.
A polling tool was used during the event to request the attendees to identify the top priorities for the event. This is what the participants indicated:
Developing SME capital markets can be a priority policy area as part of national growth strategies.
A comprehensive policy to create investor base and enhance market literacy for SMEs is needed to develop a new market.
