republic of belarus international entrepreneuership forum increasing competitiveness of the...
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REPUBLIC OF BELARUSINTERNATIONAL ENTREPRENEUERSHIP FORUM
Increasing Competitiveness of the Belarusian Economy - Access to Finance of Households and Firms
Johanna Jaeger, Senior Financial Sector Specialist,
Minsk, 16 November 2015
Development Module FSAP 2014 - Key Findings
2
Macroeconomic outlook remains fragile with risks of reignited inflation and exchange rate pressures
Banking sector High and volatile lending rates limit external funding sources of the
private sector High concentration and dominance of state owned banks Distortion in capital allocation through directed lending programs to
priority sectors (housing, agriculture) Unrealized development potential of non-banking financial
institutions Development and deepening of capital markets as an important
provider of long term financing Expansion of role of insurance sector as institutional investor Facilitation of an enabling environment for MFIs
Growth potential of alternative financing tools (leasing/factoring)
Evolution of Bank Lending
3
Financial Inclusion
Albania
Armen
ia
Azerba
ijan
Belarus
Bosnia
and H
erzeg
ovina
Bulgari
a
Georgi
a
Hunga
ry
Kazak
hstan
Kosov
o
Kyrgyz
Repub
lic
Maced
onia,
FYR
Moldov
a
Monten
egro
Roman
iaSerb
ia
Tajikist
anTurk
ey
Turkmen
istan
Ukraine
Uzbek
istan
Russia
n Fed
eratio
n 0%
10%20%30%40%50%60%70%80%90%
100%
Account at a financial institution only Financial institution and mobile money accountMobile money account only
14 pp
13 pp10 pp
7 pp
12 pp 4 pp
14 pp
10 pp 16 pp
21 pp
9 pp
12 pp
18 pp
19 pp
*Note: The change in account ownership from 2011 to 2014 is shown in red above each bar .
Financial InclusionTotal Percentage of Adults
10 pp
Access to Finance Constraints for Enterprises
Source: Enterprise Survey, WB staff calculations
Financing Gap of Enterprises
Source: Enterprise Survey, WB staff calculations
7
Financing needs are broad and vary by stage of development…
7
Capital Markets
Firm Size
Financing Needs
Micro Small Medium Large
Short Term
Medium Term
Long Term
Informal, mostly targeted by MFIs Formal, targeted by banks
Private Equity
Lease Financing
Trade Financing/ Factoring
Bank Financing
Available Financing Options
Enterprise & Household Finance – Policy Responses
8
Constraints Responses
Information asymmetry Credit Reporting Systems, Reliable Financial Information
Usable collateral
Secured Transactions Frameworks (including movable assets registries)
Weaknesses in NPL resolution
Insolvency and Creditor Rights’ Framework
Lack of Financing Sources and Products
Credit lines, Guarantee Schemes, State Banks, SME Exchanges, Reforms to encourage leasing, factoring
Financial Capability Financial Education, Training, Awareness Campaigns
• The World Bank offers a comprehensive set of instruments to support policy and legal reforms, financial infrastructure development, guarantee mechanisms, regulatory standards, financing platforms, etc.
• Instruments include financing, policy advice, data, and technical assistance.
The World Bank Group and Enterprise Finance
Select WBG
activities in the WBS
UkraineExport Development Project
Centre for Financial Reporting Reform – CFRR in Vienna, Austria, is
responsible for the World Bank’s corporate financial reporting
activities across the Europe and Central Asia region.
BiHLine of credit to enhance
access to finance for SMEs
CroatiaExport Financing
Guarantee Project
BelarusCompetitiveness Enhancement Project with access to finance
component (under preparation)
Thank you!
Johanna [email protected]