Manila, Philippines, July 23, 2010—IFC,
a member of the World Bank Group, and GTZ, a German government development
agency, are providing technical assistance to the Philippines’ central
bank to strengthen its supervisory and regulatory capacity for lending
to small and medium enterprises.
IFC and GTZ chose Deutsche Bank Risk
Management Advisory to provide advisory services on risk management best
Greater support from central bank supervisors
for commercial banks specializing in lending to small and medium enterprises
is expected to increase much needed credit flow to the sector. A study
last year by UPS Asia Business Monitor showed that more than 83 percent
of small and medium enterprises in the Philippines have experienced difficulties
in accessing credit from banks.
“Many banks are interested in using
new products and risk assessment methodologies to profitably address the
needs of small and medium enterprises,” said Will Beloe, IFC Head of Advisory
Services in the Philippines. “The central bank recognizes this need
and has made it a priority to develop a specialized team of small and medium
Commercial banks mostly lend to big
businesses or salaried individuals, while rural banks focus on microfinance.
This has given rise to the “missing middle” of small and medium
enterprises with limited access to financial services.
The Filipino central bank has successfully
trained their supervisors to specialize in supporting microfinance institutions,
and is looking at similar training to support commercial banks’ small
and medium enterprise lending operations.
Lukas van der Hoef, Head of Risk Advisory
Services Asia at Deutsche Bank, said, “This project is important and is
part of our efforts to share the latest risk-management techniques and
technology with banks and regulators around Asia to strengthen the local
banking systems and ensure their stable and continued growth.”
IFC aims to increase access to financial
services for small and medium enterprises globally. This program
is supported by the Canadian International Development Agency and the Australian
Agency for International Development. GTZ supports the program through
its Private Sector Promotion Program.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit
For more information about Deutsche
Bank, visit www.db.com.
For more information about GTZ, visit