This report, prepared by the World Bank, seeks to enhance practitioners’ understanding of the potential role that capital markets can have in SME financing in EMDEs. The report reviews global experiences with the use of capital markets solutions and, more generally, of market-based solutions to expand SME financing with a view to identifying key preconditions and challenges for EMDEs implementing the solutions.
The London Stock Exchange released a report detailing the issues faced by SMEs and opportunities with financing in Africa.
SMEs account for about 90 percent of Africa’s businesses and the driving force of the continent’s economic development, yet they are still facing financial barriers.
Key challenges SMEs are facing include:
A report from Kapronasia examines how banks and financial institutions are reacting to growing financial challenges. Problem areas for financial institutions include, third party non-bank financials threatening traditional banks and institutions, trade tensions between the U.S. and China and the U.S. and Canada, interest rates and regulations.
Key findings in the report included:
Creditease founder and chairman Ning Tang speaks on this panel about financial sector and SME transformation.
Ellevest, the digital investment startup founded by Wall Street veteran Sallie Krawcheck, is launching a new fund to invest in offerings that help advance women. Founded just over a year ago, New York-based Ellevest offers exchange-traded funds to help women save for retirement. The firm’s products account for different life variables, such as salary curves, longer life spans, and risk profiles. These distinctions help generate a better estimate of how much money clients will need in retirement, Krawcheck said.
Research & Market Analysis (RMA) has the presents "Financing Micro Firms in Europe: An Empirical Analysis", n.44 of EIF's Working Paper Series.
The Miken Institute panel discusses the lessons learned, globally, from recent efforts to expand SME access to capital through equity markets. The experts share how effective have SME exchanges been in attracting listings and expanding firms' access to capital. The panel also reviews SME listings, and how to promote greater investor participation.
Moderator
Staci Warden, Executive Director, Center for Financial Markets, Milken Institute
Speakers
Ana Carvajal, Lead Financial Sector Specialist, World Bank Group
The European Investment Bank (EIB) and Banco Sabadell will provide EUR 800m to Spanish SMEs with the aim of supporting their investments and promoting the development of new projects, particularly in the services and industrial sectors. The EIB will grant a EUR 400m loan to Banco Sabadell, to which the Spanish bank will add an additional EUR 400m of its own.
FinTech investments targeting B2B and corporate services, with particular concentration in SMB lending across India and Europe, totaled about $396 million in VC funding. News via Pymnts.
Australian challenger, Judo Bank, has completed the biggest single funding round in the country’s history by raising $400 million. StartupSmart reports that the finance – which is double Judo’s original target for the round – came from new institutional investors, including Bain Capital Credit and Tikehau Capital, along with existing investors. Read more on the link.
