Encouraging the growth of small and medium-sized enterprises (SMEs) is a crucial element of the development strategy adopted by the Myanmar government to promote sustainable, private-sector-led growth. With the SME Lending Programme (SELP), Myanmar aims to provide access to tailored financial services for SMEs to meet their investment needs, to build the capacity of financial institutions and to raise awareness on best practices for SME banking. Based on the findings of a feasibility study covering the Myanmar banking sector and a subsequent due diligence of selected banks at the end of 2013, KfW has chosen Co-Operative Bank Ltd. (CB Bank) as the Project Executing Agency for the Programme.
Frankfurt School first conducted a needs assessment to appraise CB Bank and develop a consulting, training and capacity development plan. The team also provided consultancy services at the institutional level, including aspects such as: strategy, planning and development of an SME lending strategy and business planning, design and promotion of SME lending products, development of an SME lending methodology, human resource management, risk management for credit risk and credit scoring.
In addition, a comprehensive training programme with classroom, coaching and on-the-job training for staff was conducted at various levels. In total, Frankfurt School designed eight training courses that were rolled out through 25 classroom training events. A total of 102 staff participated in one or several training courses and the Frankfurt School experts guided eight staff through a training of trainers programme to ensure sustainability for the further roll-out of the cash flow-based SME lending methodology throughout the country.