Dhaka, Bangladesh, February 17, 2014
– IFC, a member of World Bank Group, is helping City Bank improve access to finance for small businesses in Bangladesh by improving the bank’s loan and risk management processes. The three-year project is expected to disburse 18,000 loans worth $480 million to small and medium enterprises.
IFC’s support will help City Bank, across its 102 branches, expand lending and collection through automated SME and retail loan origination and collection processes, which will track and better manage disbursement and collection. The processes will be strengthened using an advanced management information system. IFC will also help design and deliver training to 250 employees of the bank on this new approach.
This project will address the financial needs of the ‘missing middle’, the segment not served by banks or microfinance institutions. City Bank is committed to filling in this important gap for rural and semi-urban entrepreneurs, who need financing to grow their businesses,” said Sohail Hussain, Chief Executive Officer, City Bank.
Rural Bangladesh is known for its outreach in microfinance. Yet, neither private nor public banks offer full services to smaller businesses located there.
“If Bangladesh is to attain its goal of reaching middle income status by 2021, small businesses will be a key driver. But they first need access to a broad range of financial services," said Jennifer Isern, IFC Manager for Access to Finance Advisory in South Asia.
In Bangladesh, IFC works with financial intermediaries to help increase access to and improve affordability of finance for small enterprises; supports product standardization, new product development , risk management, business development, and automation of operating procedures; and promotes environmentally friendly financing.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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