Small Lending Programme
On behalf of KfW, the CCB Small Lending Programme started on February 14th in China. This innovative two-year programme aims to strengthen the Chinese Small Enterprise (SE) finance sector. IAS is supporting three city commercial banks, namely Bank of Chongqing, Huishang Bank and Tailong Commercial Bank. All three partner banks are active SE lenders but currently mainly provide short-term loans with maturities of only 6 to 12 months.
Three expert teams are assisting the banks in introducing medium-term loans into their product portfolio, complementing their current short-term SE financing. The goal is to ensure sustainable, effective and client-oriented provision of medium-term loans with loan terms of around 2.5 years. Our experts designed medium-term lending products according to international best practice and at the same time introduce enhanced credit risk analysis methodologies.
Main activities in the project are focusing on:
- Product development and design: developing and implementing locally suitable products and respective lending methodologies and procedures
- Training and on the job coaching: developing and/or adjusting existing curricula and integrating them into the existing training structure regarding client credit risk assessment and financial analysis
- Process management: Where appropriate, lending procedures and processes are being adjusted
A KfW credit line of EUR 60m is being disbursed for medium-term loans for fixed assets. The teams are providing support in credit line management, reporting and fulfilling the formal requirements for KfW subloans.