The G-20 Financial Inclusion Expert Group’s (FIEG) SME Finance Sub-Group recommends Scaling-up SME access to Financial Services in developing countries. The key to making it happen lies in the development of supporting infrastructure and credit information.
The International Finance Corporation (IFC World Bank Group), as the lead advisor to G-20 Financial Inclusion Expert Group’s (FIEG) SME Finance Sub-Group, issued a report during the last quarter of 2010 with the promising title: “Scaling-up SME Access to Financial Services in the Developing World”
According to the report the total unmet need for credit by all formal and informal Micro, Small and Medium Size Enterprises (MSMEs) in emerging markets is in the range of $2.1 trillion to $2.5 trillion.
The lack of supporting financial infrastructure (accounting and auditing standards, credit reporting systems, and collateral and insolvency regimes), and the legal and regulatory framework for financial institutions and instruments appear to be the cause of it.
Several recommendations centered on the development of supportive legal and regulatory frameworks; strengthening of the financial information infrastructure and building consistent and reliable data sources. These initiatives, if supported by local governments, could result in significant opportunities for business information companies. BIIA members and users discussed the implications of this initiative at its March 24th Business Information Forum 2011 (Hong Kong Convention Center). BIIA is committed to assist the IFC in this important initiative
To read a summary findings of the report click on the attachment Scaling-up SME Access to Financial Services in the Developing World otherwise go to the link below.