World Bank - Union of Arab Banks Access to SME Finance Survey

Transcription

1 World Bank - Union of Arab Banks Access to SME Finance Survey Country: Bank s name: Name of CEO or President: Bank s Activity: [Commercial] [Investment] [Islamic] [Other] (please circle as appropriate, and specify if 'other') Ownership structure: [Private] [State] [Public] (please circle) Person(s) who filled out the questionnaire (name & title): Person s contact details: Telephone number: Fax number: Address Page 1 of 15

2 Section 1: Strategic Overview 1 Provide your Bank s definition criteria for a Small Enterprise (SE). From To Client size in terms of total sales/turnover: Client size in terms of total assets: Client size in terms of total employees: US Dollars (current rates) US Dollars (current rates) employees Other, please specify: 2 Provide your Bank s definition criteria for a Medium Enterprise (ME). From To Client size in terms of total sales/turnover: Client size in terms of total assets: Client size in terms of total employees: US Dollars (current rates) US Dollars (current rates) employees Other, please specify: 3 Does the bank currently have SMEs among its clients? Yes 3a. If yes, does the bank have a separate unit managing the banking relation with SMEs? Yes 3b. If no, do you plan to add SMEs as clients in next 12 months? NA Page 2 of 15

3 4 To what degree is your involvement with SMEs driven by the following factors? Very Marginally Not Market Saturation (intense competition for large corporates and/or retail customers) Diversification (excessive exposure to large corporates and/or retail customers) Returns (profitability in the SME segment) Supply Chain links (possibility to seek out SMEs through existing relations with large clients) Cross Selling (selling a variety of products to the SME customer) Government Incentives and Support Programs Others (specify): 5 To what degree the following factors adversely affect your decision to lend to SMEs? Very Marginally Not Lack of SME Transparency (poor quality of financial statement, informality, lack of business skills) Lack of reliable collateral by SME's Inadequate Credit Information Systems (lack of credit bureaus and registries for SME's) Weak creditor rights (weak collateral law, bankruptcy regime, contract enforcement, judicial efficiency) Restrictive regulations and legal environment (interest rate ceilings, tax regime, antimoney laundering) Excessive competition in the SME segment (presence of state banks, niche players, narrow margins) Lack of demand from SME's (weak demand from creditworthy SME's, high interest rates) Lack of Sharia Compliant Products (non-availability of Islamic products) Page 3 of 15

4 Bank specific factors (lack of lending technology and skills, strategic direction, limited geographic coverage) 6 To what degree following institutions are involved in SME financing in your country? Very Involved Involved Marginally Involved Not Involved Small private commercial banks Large private commercial banks State-owned commercial banks State-owned specialized banks Islamic Banks Leasing companies Other financial intermediaries outside the banking system e.g. public funds Other (e.g. social funds, government agencies), please specify: 7 What is your long-term target for SME lending as a % of total lending % of total Section 2: SME Products and Market 8 What type of services does your bank provide to SMEs? Deposits and cash management products Loan products Lines of credit/overdraft facilities Trade finance (e.g. letters of credit) Page 4 of 15

5 Leasing products Payments and transfers products Insurance products Advice, technical assistance 9 What types of distribution channels does your bank have which are important for relations with SME clients? Own branches (full-service branch) Own branches (limited-service branch) Mobile branches ATMs Points of sale Agents (post office, retail outlets, other non-bank entities) Internet banking Self service (automated) banking Phone banking Other, specify: 10 Please indicate the main characteristics of your loans to SMEs Interest Rate Maximum (% p.a.) Minimum (% p.a.) Currency Local (% of total SME loans) Page 5 of 15

6 Foreign (% of total SME loans) Term/Maturity Shorter than one year (% of total SME loans) Longer than one year (% of total SME loans) Purpose Investment (% of total SME loans) Working Capital (% of total SME loans) Other (e.g. Trade) (% of total SME loans) 11 Does your bank offer Sharia-compliant products? 11a. If yes, kindly indicate the products your bank offers Murabaha Mudaraba Ijara Musharaka Istisna`a Other, please specify: 11b. If no, do you plan to offer Sharia-compliant products in next 12 months? 12 Are collateral requirements higher for SMEs than for larger corporates? 12a. If yes, please indicate the degree of importance of the following factors Page 6 of 15

7 Very Marginally Not SMEs are less stable SMEs have less competent management SMEs are harder to evaluate (lack of information) SME contracts are harder to enforce SMEs collateral is more difficult to seize in case of default Other, please specify: 13 Please indicate the government programs that exist and their importance in your decision to lend to SMEs Program exists Overall Impact Yes/No Very Marginally Not Guarantees Co-financing Subsidized lending Lower Reserve Requirements Other, please specify: 14 Does your bank accept movable assets as collateral for SME lending? 15 Are there difficulties in registering fixed and movable collateral for SME lending? Fixed Assets Page 7 of 15

8 Movable Assets 16 Are there difficulties in enforcing (seizing) fixed and movable collateral for SME lending? Fixed Assets Movable Assets 17 Are there difficulties in selling fixed and movable collateral for SME lending? Fixed Assets Movable Assets 18 Do you use a Credit Registry or Credit Bureau as part of the loan analysis process? Credit Registry Credit Bureau 19 If there is a Credit Registry is there a threshold for minimum loan size reported? What amount? Yes/No Amount 20 How would you rate the usefulness of the credit registry or credit bureau for assessing SME credit risk? Very Effective Effective Marginally Effective Not Effective Credit Registry Credit Bureau Page 8 of 15

9 21 Do you have programs targeted toward women-owned businesses? 22 Have you observed any difference in repayment behavior between men and womenowned businesses? Yes, better for womenowned businesses Yes, better for menowned businesses No Difference NOT OBSERVED 23 What is the percentage of female loan officers? % 24 Is the percentage of defaulted loans lower by female loan officers? % Section 3: Risk Management 25 Provide your assessment of the risk of default (%) of the average SME loan relative to the average loan of other type SME loans less risky than SME Loans equally risky than SME Loans more risky than Large corporates Consumers (credit card, overdraft, non-collateralized) Housing Microfinance Page 9 of 15

10 26 What risk techniques and selection criteria does your bank use to determine the SMEs it will target? Credit scoring internal (built using your own data) Credit scoring external (credit bureau scores) Rating system internal (e.g. financial analysis of SME, qualitative analysis of SME) Export orientation Growth prospects of specific SME sectors Size of exposure to specific SME sectors Firms that are existing clients Supplier to a firm that s an existing client 27 If your bank uses a scoring model, do you utilize an automated application processing system to approve loans for SME clients? Yes/No 28 If your bank uses a scoring model, then please provide % % of small business applicants are scored % of credit applicants are approved 29 Do you run any of the below mentioned stress test exercises on the SME portfolio? Page 10 of 15

11 Currency shocks Interest rate shocks Slow-down in a particular sector Commodity price shock (when relevant) GDP shock (when relevant) Other, please specify: 30 After how many days is a non-serviced SME loan moved to non-accrual? Days 31 How often are SME loans reviewed and re-rated? Quarterly Semiannually Annually 32 What is the average number of months it takes to recover all or a significant proportion of a defaulted SME loan? Months Portfolio to new to answer 33 What is the average percent share of SME problem loans recovered? % Portfolio to new to answer Page 11 of 15

12 34 How is your institution complying with the new Basle II regulation, as regards the computation of capital requirements against credit risk? Standardized Approach Internal Ratings-based Approach Not yet adopting Basle II. 35 The overall impact of the adoption of Basle II on SME lending by your institution will be: Positive Neutral Negative Don't Know 36 Will Basle II impact the selection of SME size Will favor smaller SMEs Will favor larger SMEs No impact on SME size Don't Know 37 Are your SME clients informed of the factors that drive ratings or scorings? 38 For regulatory purposes, are SMEs classified in your retail or corporate portfolio? Page 12 of 15

13 Retail Corporate Section 4: Data Request SME Lending Dec 07 Dec 08 June 09 39a. Outstanding portfolio (loans) - total for bank (currency amount) 39b. Outstanding portfolio (loans) with households (currency amount) 39c. Outstanding portfolio (loans) with small and medium enterprises (currency amount) 39d. Of which: Outstanding portfolio (loans) with small enterprises (currency amount) 39e. Of which: Outstanding portfolio (loans) with medium enterprises (currency amount) 39f Outstanding portfolio (loans) with large enterprises (currency amount) Dec 07 Dec 08 June 09 40a. No. loans disbursed - total for bank 40b. No. loans disbursed to households 40c. No. loans disbursed to small and medium enterprises 40d. No. loans disbursed to large enterprises Dec 07 Dec 08 June 09 41a. No. active clients (borrowers) - total for bank 41b. No. active clients (borrowers) - households 41c. No. active clients (borrowers) - small and medium enterprises 41d. No. active clients (borrowers) - large enterprises Dec 07 Dec 08 June 09 Page 13 of 15

14 42a. Percentage (%) of loan applications approved per year - total for bank 42b. Percentage (%) of loan applications approved per year - households 42c. Percentage (%) of loan applications approved per year - small and medium enterprises 42d. Percentage (%) of loan applications approved per year - large enterprises Dec 07 Dec 08 June 09 43a. % of gross bank loan portfolio secured by collateral 43b. % of gross household loan portfolio secured by collateral 43c. % of gross small and medium enterprise loan portfolio secured by collateral 43d. % of gross large enterprise loan portfolio secured by collateral Dec 07 Dec 08 June 09 44a. % of gross bank loan portfolio covered by guarantees 44b. % of gross household loan portfolio covered by guarantees 44c. % of gross small and medium enterprise loan portfolio covered by guarantees 44d. % of gross large enterprise loan portfolio covered by guarantees 45a. Islamic lending portfolio (total for bank) Dec 07 Dec 08 June 09 45b. Islamic lending portfolio with households (currency amount) 45c. Islamic lending portfolio with small and medium enterprises (currency amount) 45d. Islamic lending portfolio with large enterprises (currency amount) Further Data 46 Could you provide us with the bank's ownership structure (% of equity owned by)? % Page 14 of 15

15 1. Government/State 2. Private sector (domestic) 3. Private sector (foreign) 4. International Financial Institutions (E.g. IFC, Islamic Development Bank) 5. Other, please specify 47 Average Interest Rates for lending to firms (1 year) % Large corporates (prime rate) Minimum SME rate Average SME rate Maximum SME rate Typical microfinance rate 48 What is the number of branches your bank has in this country? 49 What is the number of ATMs your bank has in this country? 50 What is the number of points of sales your bank has in this country Page 15 of 15