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Cashflow-based SME lending, establishing VTBs, middle management training

Project Details

CLIENT

Ma'anshan Rural Commercial Bank

YEAR

2009-2013

COUNTRY / REGION

China / South, Southeast & East Asia

EXPERTISE

Banking & SME Finance

Training & Skill Development

Knowledge Transfer

KEY TOPICS

SME Finance

HR Development & Training

Workshops

CONTACT

Ulrich Weber

Ma’anshan Rural Commercial Bank (MRCB) was one of the partner banks to receive IPC support in developing cashflow-based MSE lending capacities in the framework of the China Development Bank’s China Microfinance Project (CMFP). After obtaining IPC’s support under the CMFP, the bank contracted IPC directly to: (1) assist in the development of its SME-lending activities; (2) support MRCB’s growing village and township bank (VTB) network by strengthening MSME-lending operations in this network and developing coordination capacities in the MRCB’s head office; and (3) strengthen middle-management training capacities throughout the bank and its VTBs.

Assisting in the development of SME-lending activities

  • Assessing the current SME-lending activities of the bank: policies, procedures, job descriptions, products, training standards and capacities, IT/MIS
  • Recruiting suitable SME lending staff from among MSE lending staff: SME loan officers, back office and supervisory staff
  • Developing a new set of SME-related policies with the bank: procedures, products with maximum amount of RMB 5 million (EUR 650,000)
  • Strengthening training capacities regarding SME-lending staff
  • Providing classroom and on-the-job training on all steps of the SME credit cycle, including training of credit committee members and exercising veto rights in credit committees
  • Re-calibrating the performance-based salary approach for SME-lending staff
  • Developing products and concepts for expansion of SME-lending operations to a broader market segment, including rural SMEs

VTB support

  • Strengthening capacity to coordinate the growing VTB network
  • Assisting in business planning and market studies prior to opening new VTBs
  • Screening VTB staff for suitability to perform cashflow-based MSME-lending activities
  • Providing classroom and on-the-job training on all aspects of the credit cycle to MSME-lending and supervisory staff in two VTBs

Middle-management training capacities

  • Needs assessment for middle management training throughout the bank and its network of VTBs
  • Jointly with the bank, setting up a systematic approach for middle management training: curriculum and implementation planning
  • Delivery of two middle management trainings in business planning and HR management

 

With the assistance of IPC, MRCB was able to strengthen its position as a leading regional SME lender and establish a foundation to successfully operate a broad network of VTBs throughout China. This successful project also laid the groundwork for further cooperation with IPC in the area of green finance and training.

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