Showcasing successful SME lending - SME Sector Workshop for Jordanian Banks

2014-01-31 - 2014-01-31

The project was initiated by the SANAD Fund for MSME and Finance in Motion (FIM), to enable interested commercial banks in Jordan to learn more about the opportunities and challenges of venturing into SME lending. For the participating banks who have already begun SME lending, it was intended to act as a forum to learn about and discuss best practices in the industry, as well as capacity building initiatives.
LFS participated in hosting a workshop for Jordanian commercial banks on the subject of SME lending. Mr. Enenbach as an LFS consultant moderated the event and presented best practices. LFS also brought in an executive from a bank that had previously downscaled in Uzbekistan under LFS’s advisory (Hamkor Bank). The executive presented his bank as a successful downscaling case study. The main elements of the assignment were the following: Present the theoretical basics of best practice SME lending, including institutional and legal prerequisites for successful SME operations Identify and present a successfully downscaled commercial bank operating under similar framework conditions and using a similar SME definition like banks in Jordan Bring in a senior executive from this showcase bank that shall present the institution’s historic development including challenges encountered and solutions addressing them along key milestones. The case study covered: including a pre- and post-implementation institutional swot analysis, the bank’s rationale for venturing into SME lending, development of a downscaling workplan, practical implementation including costs and timeline accompanying this roadmap, and an analysis of the bank’s current SME lending business (profitability and sustainability) Moderate a closing roundtable / Q&A session with the showcase bank’s senior executive