Publication: Creating Financial Infrastructure in a Large Transition Economy – Lessons from China’s New Credit Bureau
International Financial Corporation (IFC) and the World Bank have in recent years promoted the implementation of credit bureaus as a way of improving access to finance for both individuals and businesses. In 2003, no such structure existed for consumer credit information in China. Not only was access to financing reduced, but the quality of the entire lending industry was also affected nonperforming loans represented a significant proportion of the portfolio, risk management practices were weak, and loans were poorly monitored. However, as this smart lesson describes, creating financial infrastructure such as a consumer credit bureau in large countries presents a unique set of challenges.
“Paramanathan, Prashan; Huang, Lin. 2009. Creating Financial Infrastructure in a Large Transition Economy – Lessons from China’s New Credit Bureau. IFC Smart Lessons Brief. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/1abfbb0c-204e-5c24-8ddd-0bb2eb71dda2 License: CC BY-NC-ND 3.0 IGO.”
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PublicationIFC at an Inflection Point : Time for a New Business Delivery Model?(World Bank, Washington, DC, 2012-12)As International Finance Corporation (IFC) continues to further scale up its operations, seeking to deliver more development impact, could it be in danger of inadvertently becoming an increasingly slower and higher-cost delivery mechanism, and thus a less relevant change agent? This smart lesson, growing out of the author's observations during 32 years with IFC, proposes an alternative business delivery model with particular relevance to fragile states and frontier regions in middle income countries, in hopes of sparking a lively and productive debate around how IFC defines, delivers and measures success in its poverty reduction effort.
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