Financial infrastructure needs to be developed to expand outreach to SMEs: ADB
Updated: Sep 03, 2015 02:28:18pm
New Delhi, Sept 3 (KNN) Financial infrastructure needs to be developed to expand financial outreach to a larger number of SMEs, a latest report by Asian Development Bank (ADB) has said adding that the Basel III may negatively affect bank lending attitudes to SMEs.
Recent global economic slowdown requires a new growth model for Asia, where small and medium enterprises (SMEs) play a greater role in boosting national productivity, ADB’s report on Asia Small and Medium-sized Enterprise (SME) Finance Monitor 2014 said.
The Asia SME Finance Monitor 2014 is the knowledge sharing product on SMEs in Asia and the Pacific, specially focusing on SME access to finance. This publication reviews various country aspects of SME finance covering the banking sector, nonbank sector, and capital markets. It is expected to support evidence-based policy making and regulations on SME finance in the region.
The report highlights that strengthening SME competitiveness is a critical policy agenda, given the anticipated low SME survival rate and liberalized trade and investment.
It said the nonbank finance industry is small in scale and influenced by bank performance; comprehensive national policy frameworks are lacking.
Although still in the trial stages, positive performances on SME equity markets and government reform efforts have been seen in Asia; and a balanced approach is required to design extensive policy measures for improving SME access to finance, and for safeguarding their financial stability.
The report said while mobile technology has been making access to financial services easier, faster, and cheaper for everyone from high-income individuals to even bottom-of-the pyramid households, the SME segment around the world seems to have made minimal use of this new technology for their financial needs.
The so-called SME “missing middle” in terms of financial access appears to have mobile financial services missing as well. (KNN Bureau)
Recent global economic slowdown requires a new growth model for Asia, where small and medium enterprises (SMEs) play a greater role in boosting national productivity, ADB’s report on Asia Small and Medium-sized Enterprise (SME) Finance Monitor 2014 said.
The Asia SME Finance Monitor 2014 is the knowledge sharing product on SMEs in Asia and the Pacific, specially focusing on SME access to finance. This publication reviews various country aspects of SME finance covering the banking sector, nonbank sector, and capital markets. It is expected to support evidence-based policy making and regulations on SME finance in the region.
The report highlights that strengthening SME competitiveness is a critical policy agenda, given the anticipated low SME survival rate and liberalized trade and investment.
It said the nonbank finance industry is small in scale and influenced by bank performance; comprehensive national policy frameworks are lacking.
Although still in the trial stages, positive performances on SME equity markets and government reform efforts have been seen in Asia; and a balanced approach is required to design extensive policy measures for improving SME access to finance, and for safeguarding their financial stability.
The report said while mobile technology has been making access to financial services easier, faster, and cheaper for everyone from high-income individuals to even bottom-of-the pyramid households, the SME segment around the world seems to have made minimal use of this new technology for their financial needs.
The so-called SME “missing middle” in terms of financial access appears to have mobile financial services missing as well. (KNN Bureau)
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