Building SME lending capacity at Myanma Apex Bank (MAB)
The KfW SME Lending Programme II (SELP II) aims to provide financial and technical assistance to banks in Myanmar with the goal of spurring sustainable lending to small and medium enterprises (SMEs). A consortium led by IPC was contracted by KfW to specifically provide support for 30 months to Myanma Apex Bank (MAB), a private commercial bank.
In order to support SME lending at MAB, the consortium first conducted an institutional analysis of MAB, with the goal of understanding current gaps in MAB’s SME strategy and service. Following this, the consortium supported MAB in developing a SME lending strategy, with a detailed business plan for integrating SME lending into the overall business of the Bank and for building the necessary capacity to sustainably expand SME lending.
With the plan established, the IPC-led consortium worked with MAB to design and market SME lending products, develop a fitting SME lending methodology, establish an appropriate risk management system for SME lending, support the implementation of a strong management information system (MIS), and implement a SME-related human resource management strategy (including job descriptions, staff incentive schemes, and training plans).
In this way, the IPC-led consortium have been able to significantly enhance the capacity of MAB to significantly and sustainably engage in SME lending and further enable the growth of SMEs in Myanmar.