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Diagnostics and strengthening of MSE lending

Project Details

CLIENT

Jinshang Bank

YEAR

2012-2013

COUNTRY / REGION

China / South, Southeast & East Asia

EXPERTISE

Banking & SME Finance

Inclusive Finance

KEY TOPICS

SME Finance

Microfinance

Due Diligence

CONTACT

Ulrich Weber

Following a field visit to a leading MSE bank in China where IPC had successfully introduced cashflow-based MSE lending operations, Jinshang Bank introduced its own MSE-lending activities using the insights gained during the field visit and relying on its own experience and capacities. Around 1.5 years after starting these operations, the bank contracted IPC to conduct a one-month gap analysis of its MSE lending operations using IPC’s best practice as the benchmark. Based on the gap analysis, the bank then contracted IPC to provide assistance in improving MSE lending operations in a support project over 4.5 months on location.

 

MSE lending gap analysis, followed by a report, recommendations and a workshop

Analysing and assessing:

  • Organisational structure including relevant policies and job descriptions
  • HR management, including staff evaluation and incentive scheme
  • Market positioning and products
  • Procedures and lending operations, including portfolio analysis, as well as the performance of the bank, branches and staff
  • Internal control and risk management
  • Training system
  • IT system / MIS

On-location MSE lending improvement assignment

  • Institutional strengthening of MSE-lending operations on head-office level, with special emphasis on adapting relevant policies and procedures
  • Classroom training for relevant HO and branch staff to strengthen risk management capacities and deepen the understanding of cashflow-based MSE lending technology
  • Providing on-the job training for branch-level MSE lending staff on all steps of the credit cycle, including the exercise of veto rights in the credit decision process
  • Coaching supervisory staff on HO and branch level
  • Identifying and coaching of multipliers, trainers and on-the-job training mentors

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