Banks Must Build Specialised SME Lending Capabilities – EBRD

By Siti Radziah Hamzah

TASHKENT, June 16 (Bernama) --  Developing deeper capital markets and expanding financing access for underserved segments remain among the key challenges facing emerging Southeast Asian economies, according to the European Bank for Reconstruction and Development (EBRD).

EBRD managing director and head of financial institutions Francis Malige said while banking systems in many emerging markets were generally well-capitalised, greater efforts were needed to channel financing to segments that were often overlooked by traditional lenders, particularly small and medium enterprises (SMEs).

"The biggest gap has to be capital markets development, as well as helping banks address markets that are not as well served as other markets," he told Bernama on the sidelines of the Tashkent International Investment Forum (TIIF) 2026 here today. 

Malige said SMEs continue to face structural barriers in accessing financing despite their importance to economic growth and job creation.

"It is easier to lend to the government than to SMEs. It is also more complicated to analyse an SME. The effort you need to put in compared to the size of your loan is not as favourable as for a large corporation," he said.

As a result, financial institutions need to develop specialised SME lending capabilities and risk assessment practices to better serve the sector.

Malige said the EBRD works closely with partner financial institutions across its regions of operation to strengthen their capacity to serve underserved market segments.

Beyond SMEs, he said female and young entrepreneurs also frequently encounter difficulties in obtaining financing, highlighting the need for more targeted lending programmes and financial products.

"We help our partner financial institutions find a way to develop specialised SME lending skills and specialised SME lending practices, and also help them address markets that are underserved, like female entrepreneurs and young entrepreneurs," he said.

On cross-border trade financing, Malige said development finance institutions continue to play an important role in supporting international commerce amid shifting global supply chains.

He noted that the EBRD operates an extensive trade facilitation programme involving approximately 130 issuing banks and nearly 1,000 confirming banks worldwide.

"There is capacity available. Anyone who wants to do trade with an EBRD country of operation, such as Uzbekistan, is welcome to come and talk to us and take part in the programme," he said.

Malige said global investors are increasingly adapting their strategies in response to a more volatile and unpredictable international environment, leading to shifts in supply chains and investment flows.

He said countries that maintain supportive investment policies and strengthen economic fundamentals will be better positioned to attract capital and benefit from these changes.

The fifth edition of the TIIF is taking place from June 16 to June 19 with the theme "Investment Resilience: New Frontiers, New Partnerships".

The forum featured a large-scale industrial exhibition with over 100 domestic manufacturers, alongside numerous business-to-business and business-to-government meetings.

In 2025, the forum was attended by over 8,000 people, including 3,000 foreign guests from over 100 countries.

-- BERNAMA