News 24 | Everything you need to know about the “Bank for Small and Medium Enterprises” which the Cabinet has approved to create



[ad_1]

Council of MinistersThe Council of Ministers, during its session chaired by the Guardian of the two holy mosques, King Salman bin Abdulaziz, yesterday (Tuesday) approved the creation of a “Bank of small and medium enterprises”, with the aim of increasing financing granted to the sector, promote its growth and close the financing gap.

The General Authority for Small and Medium Enterprises “Monshaat” announced last night the launch of the bank, which is part of the development funds and banks of the National Development Fund, to enhance the fund’s contributions by providing innovative financing solutions and ensuring financial stability for this vital sector.

What "Bank of small and medium enterprises" Which cabinet approved its creation?

Digital Bank:

The Bank of Small and Medium Enterprises will present all its products and services in digital form without the need to set up branches, which will contribute to the provision of services in all promising areas, and it will also focus on the implementation of the best international practices in cooperation with and local partners. Build a product portfolio suitable for all segments of small and medium enterprises.

Bank initiatives:

The core of the bank is represented in 3 qualitative initiatives which include: the indirect loan initiative with a capital of 1.6 billion riyals, the creation of the Saudi Venture Investment Company with a capital of 2.8 billion riyals, and raising the capital of the “Kafala” Program to 1.6 billion riyals.

The establishment of the bank has become an umbrella for all financing solutions, including lending and equity financing, guarantee financing and alternative financing.

The total amount disbursed under the indirect lending initiative from the initiation of the initiative until the end of 2020 AD reached 2 billion riyals, while the amounts approved for investment exceeded 1 billion riyals, while that the total value of the guarantees of financing by small and medium enterprises “Kafalah” from the year 2018 until the end of last year, to 32.2 billion riyals.

Bank characteristics:

Among the most salient features of the bank are the provision of lending products on competitive terms that serve all sectors, the use of technology in lending operations, the provision of guarantees tailored to the microenterprise segment. , increasing opportunities for businesses to secure financing and support for advocacy efforts and non-financial services to empower businesses.

What "Bank of small and medium enterprises" Which cabinet approved its creation?

An umbrella financing solution

The governor of the General Authority for Small and Medium Enterprises “Monshaat”, Saleh Al-Rasheed, said that the bank’s launch was helping to close the financing gap in this sector and supported Monsha’at’s strategy to boost funding through initiatives that formed the core of its launch, which will deliver its services and products in digital form.

For his part, the interim CEO of the bank, Muhammad Al-Maliki, reviewed the financing solutions that the bank will provide in support of micro, small and medium enterprises by increasing their access to finance and working towards the realization. of Vision 2030 which supports the financial stability of these companies.

The creation of the bank was based on a comparative study covering 14 countries; Discuss best practices to support the financing of small and medium enterprises, analyze the current situation and identify financing gaps.



[ad_2]
Source link