How Do Banks Serve SMEs? Business and Risk Management Models
This study describes the business and risk management practices that banks use to serve small and medium enterprises (SMEs). To do so, we use recently collected evidence from Argentina and Chile for a significant number of banks in each country, ga...
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| Format: | Other Financial Sector Study |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2008/06/16404267/banks-serve-smes-business-risk-management-models http://hdl.handle.net/10986/12959 |
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okr-10986-129592021-04-23T14:03:03Z How Do Banks Serve SMEs? Business and Risk Management Models de la Torre, Augusto Martínez Pería, María Soledad Politi, María Mercedes Schmukler, Sergio L. Vanasco, Victoria ACCESS TO FINANCE ACCOUNTING AMOUNT OF LOANS AUDITORS AUTONOMY BALANCE SHEETS BANK CREDIT BANK FINANCING BANK LENDING BANK POLICY BANK REGULATIONS BANKING PRACTICES BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKS BORROWER BRANCH LOCATION BUSINESS CENTERS CAPITAL REQUIREMENTS CASH FLOW CASH FLOWS CASH MANAGEMENT CENTRAL BANK CENTRAL BANKS COLLATERAL COLLATERAL REQUIREMENT COLLATERAL REQUIREMENTS COMMODITY PRICES COMMUNITY BANKS CONSUMER LENDING CONSUMER LOANS CREDIT ANALYSIS CREDIT BUREAU CREDIT BUREAUS CREDIT CARD CREDIT LIMITS CREDIT LINES CREDIT MARKET CREDIT PRODUCT CREDIT QUALITY CREDIT RISK CREDIT RISK EXPOSURE CREDIT RISK MANAGEMENT CREDIT SCORING CURRENCY DEBT DEBT OUTSTANDING DEBTOR DEBTORS DEFAULT CASES DEFAULT PROBABILITY DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANKS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMICS EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EXCHANGE RATE FINANCIAL ANALYSIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL NEEDS FINANCIAL RISK FINANCING OBSTACLES FOREIGN BANKS FOREIGN EXCHANGE FORGIVENESS INDEBTEDNESS INDIVIDUAL LOAN INTEREST RATE INTEREST RATES INTERNATIONAL BANKS INTERNATIONAL FINANCE INTERNATIONAL FINANCE CORPORATION JUDICIAL PROCESS LACK OF ACCESS LEGAL CONSTRAINTS LENDING DECISIONS LIQUID ASSETS LIQUIDITY LOAN LOAN AMOUNT LOAN APPLICATIONS LOAN APPROVAL LOAN APPROVAL PROCESS LOAN DECISION LOAN OFFICER LOAN PRODUCTS LOAN RECOVERY LOAN REPAYMENT LOAN REQUESTS LOAN VOLUME LONG-TERM LOANS LOW INTEREST RATES MARKET SHARE MARKET STRUCTURE MICRO-ENTERPRISES MONEYLENDERS NET WORTH NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOAN NPL OVERDRAFT OVERDUE LOAN PERSONAL GUARANTEE PLEDGE COLLATERAL PORTFOLIO PORTFOLIOS PRIVATE BANKS PRIVATE SECTOR LOANS PROBABILITY OF DEFAULT PROFITABILITY PUBLIC BANKS QUALITY OF ASSETS RELATIONSHIP LENDING REORGANIZATION REPAYMENT RISK ASSESSMENTS RISK MANAGEMENT SECURITIES SHARE OF INVESTMENTS SIGNATURE LOANS SMALL BANKS SMALL BUSINESS SMALL ENTERPRISES SMALL LOANS SOLVENCY SOURCES OF FINANCE TOTAL DEBT TRANSACTION TRANSACTION COSTS TRANSPARENCY UNION This study describes the business and risk management practices that banks use to serve small and medium enterprises (SMEs). To do so, we use recently collected evidence from Argentina and Chile for a significant number of banks in each country, gathered through on-site meetings, a tabulated questionnaire, and a detailed data request. We find that banks are setting up separate departments to serve the segment, targeting many SMEs from all economic sectors and geographic regions. Banks use relationship managers to seek out new clients. Risk management and loan approval is separate from sales, mostly centralized, but not largely automated. Knowing the client is still crucial to minimize risks. Overall, the patterns we uncover suggest that banks are in the middle of an on-going learning process, by which they are developing the structure to deal with SMEs in a sustainable basis over the coming years. 2013-03-26T20:03:50Z 2013-03-26T20:03:50Z 2008-06 http://documents.worldbank.org/curated/en/2008/06/16404267/banks-serve-smes-business-risk-management-models http://hdl.handle.net/10986/12959 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Other Financial Sector Study Economic & Sector Work Latin America & Caribbean ARGENTINA Chile |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO FINANCE ACCOUNTING AMOUNT OF LOANS AUDITORS AUTONOMY BALANCE SHEETS BANK CREDIT BANK FINANCING BANK LENDING BANK POLICY BANK REGULATIONS BANKING PRACTICES BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKS BORROWER BRANCH LOCATION BUSINESS CENTERS CAPITAL REQUIREMENTS CASH FLOW CASH FLOWS CASH MANAGEMENT CENTRAL BANK CENTRAL BANKS COLLATERAL COLLATERAL REQUIREMENT COLLATERAL REQUIREMENTS COMMODITY PRICES COMMUNITY BANKS CONSUMER LENDING CONSUMER LOANS CREDIT ANALYSIS CREDIT BUREAU CREDIT BUREAUS CREDIT CARD CREDIT LIMITS CREDIT LINES CREDIT MARKET CREDIT PRODUCT CREDIT QUALITY CREDIT RISK CREDIT RISK EXPOSURE CREDIT RISK MANAGEMENT CREDIT SCORING CURRENCY DEBT DEBT OUTSTANDING DEBTOR DEBTORS DEFAULT CASES DEFAULT PROBABILITY DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANKS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMICS EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EXCHANGE RATE FINANCIAL ANALYSIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL NEEDS FINANCIAL RISK FINANCING OBSTACLES FOREIGN BANKS FOREIGN EXCHANGE FORGIVENESS INDEBTEDNESS INDIVIDUAL LOAN INTEREST RATE INTEREST RATES INTERNATIONAL BANKS INTERNATIONAL FINANCE INTERNATIONAL FINANCE CORPORATION JUDICIAL PROCESS LACK OF ACCESS LEGAL CONSTRAINTS LENDING DECISIONS LIQUID ASSETS LIQUIDITY LOAN LOAN AMOUNT LOAN APPLICATIONS LOAN APPROVAL LOAN APPROVAL PROCESS LOAN DECISION LOAN OFFICER LOAN PRODUCTS LOAN RECOVERY LOAN REPAYMENT LOAN REQUESTS LOAN VOLUME LONG-TERM LOANS LOW INTEREST RATES MARKET SHARE MARKET STRUCTURE MICRO-ENTERPRISES MONEYLENDERS NET WORTH NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOAN NPL OVERDRAFT OVERDUE LOAN PERSONAL GUARANTEE PLEDGE COLLATERAL PORTFOLIO PORTFOLIOS PRIVATE BANKS PRIVATE SECTOR LOANS PROBABILITY OF DEFAULT PROFITABILITY PUBLIC BANKS QUALITY OF ASSETS RELATIONSHIP LENDING REORGANIZATION REPAYMENT RISK ASSESSMENTS RISK MANAGEMENT SECURITIES SHARE OF INVESTMENTS SIGNATURE LOANS SMALL BANKS SMALL BUSINESS SMALL ENTERPRISES SMALL LOANS SOLVENCY SOURCES OF FINANCE TOTAL DEBT TRANSACTION TRANSACTION COSTS TRANSPARENCY UNION |
| spellingShingle |
ACCESS TO FINANCE ACCOUNTING AMOUNT OF LOANS AUDITORS AUTONOMY BALANCE SHEETS BANK CREDIT BANK FINANCING BANK LENDING BANK POLICY BANK REGULATIONS BANKING PRACTICES BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKS BORROWER BRANCH LOCATION BUSINESS CENTERS CAPITAL REQUIREMENTS CASH FLOW CASH FLOWS CASH MANAGEMENT CENTRAL BANK CENTRAL BANKS COLLATERAL COLLATERAL REQUIREMENT COLLATERAL REQUIREMENTS COMMODITY PRICES COMMUNITY BANKS CONSUMER LENDING CONSUMER LOANS CREDIT ANALYSIS CREDIT BUREAU CREDIT BUREAUS CREDIT CARD CREDIT LIMITS CREDIT LINES CREDIT MARKET CREDIT PRODUCT CREDIT QUALITY CREDIT RISK CREDIT RISK EXPOSURE CREDIT RISK MANAGEMENT CREDIT SCORING CURRENCY DEBT DEBT OUTSTANDING DEBTOR DEBTORS DEFAULT CASES DEFAULT PROBABILITY DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANKS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMICS EMERGING ECONOMIES EMERGING MARKETS EMPLOYMENT EXCHANGE RATE FINANCIAL ANALYSIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL NEEDS FINANCIAL RISK FINANCING OBSTACLES FOREIGN BANKS FOREIGN EXCHANGE FORGIVENESS INDEBTEDNESS INDIVIDUAL LOAN INTEREST RATE INTEREST RATES INTERNATIONAL BANKS INTERNATIONAL FINANCE INTERNATIONAL FINANCE CORPORATION JUDICIAL PROCESS LACK OF ACCESS LEGAL CONSTRAINTS LENDING DECISIONS LIQUID ASSETS LIQUIDITY LOAN LOAN AMOUNT LOAN APPLICATIONS LOAN APPROVAL LOAN APPROVAL PROCESS LOAN DECISION LOAN OFFICER LOAN PRODUCTS LOAN RECOVERY LOAN REPAYMENT LOAN REQUESTS LOAN VOLUME LONG-TERM LOANS LOW INTEREST RATES MARKET SHARE MARKET STRUCTURE MICRO-ENTERPRISES MONEYLENDERS NET WORTH NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOAN NPL OVERDRAFT OVERDUE LOAN PERSONAL GUARANTEE PLEDGE COLLATERAL PORTFOLIO PORTFOLIOS PRIVATE BANKS PRIVATE SECTOR LOANS PROBABILITY OF DEFAULT PROFITABILITY PUBLIC BANKS QUALITY OF ASSETS RELATIONSHIP LENDING REORGANIZATION REPAYMENT RISK ASSESSMENTS RISK MANAGEMENT SECURITIES SHARE OF INVESTMENTS SIGNATURE LOANS SMALL BANKS SMALL BUSINESS SMALL ENTERPRISES SMALL LOANS SOLVENCY SOURCES OF FINANCE TOTAL DEBT TRANSACTION TRANSACTION COSTS TRANSPARENCY UNION de la Torre, Augusto Martínez Pería, María Soledad Politi, María Mercedes Schmukler, Sergio L. Vanasco, Victoria How Do Banks Serve SMEs? Business and Risk Management Models |
| geographic_facet |
Latin America & Caribbean ARGENTINA Chile |
| description |
This study describes the business and
risk management practices that banks use to serve small and
medium enterprises (SMEs). To do so, we use recently
collected evidence from Argentina and Chile for a
significant number of banks in each country, gathered
through on-site meetings, a tabulated questionnaire, and a
detailed data request. We find that banks are setting up
separate departments to serve the segment, targeting many
SMEs from all economic sectors and geographic regions. Banks
use relationship managers to seek out new clients. Risk
management and loan approval is separate from sales, mostly
centralized, but not largely automated. Knowing the client
is still crucial to minimize risks. Overall, the patterns we
uncover suggest that banks are in the middle of an on-going
learning process, by which they are developing the structure
to deal with SMEs in a sustainable basis over the coming years. |
| format |
Economic & Sector Work :: Other Financial Sector Study |
| author |
de la Torre, Augusto Martínez Pería, María Soledad Politi, María Mercedes Schmukler, Sergio L. Vanasco, Victoria |
| author_facet |
de la Torre, Augusto Martínez Pería, María Soledad Politi, María Mercedes Schmukler, Sergio L. Vanasco, Victoria |
| author_sort |
de la Torre, Augusto |
| title |
How Do Banks Serve SMEs? Business and Risk Management Models |
| title_short |
How Do Banks Serve SMEs? Business and Risk Management Models |
| title_full |
How Do Banks Serve SMEs? Business and Risk Management Models |
| title_fullStr |
How Do Banks Serve SMEs? Business and Risk Management Models |
| title_full_unstemmed |
How Do Banks Serve SMEs? Business and Risk Management Models |
| title_sort |
how do banks serve smes? business and risk management models |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2008/06/16404267/banks-serve-smes-business-risk-management-models http://hdl.handle.net/10986/12959 |
| _version_ |
1764420993103691776 |