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
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.
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