General Manager of SME&SPD, addresses international programmes : BB’s initiatives and

Honorable Governor’s leadership lauded.

General Manager of SME & SPD Mr. Sukamal Sinha Choudhury attended APAC SME Banking

Conference 2013 in Malaysia during 15-16 May, 2013 and attended SBBN CEO & Senior Leaders

Roundtable, 2013 in Dubai during 20-21 May 2013. In both the programmes he delivered

presentation on the SME initiatives and achievements in Bangladesh. General Manager in his

speech lauded leadership and contribution of Honorable Governor Dr. Atiur Rahman which was

appreciated by the participants and guests presented in both the programmes.

Report on APAC SME Banking Conference 2013 in Malaysia

APAC SME Banking Conference 2013 was held during 15-16 May, 2013 at THE ROYALE

CHULAN HOTEL, KUALALUMPUR, organized by FLEMING GULF CONFERENCES, under

cooperation with CYBER VILLAGE, ASIAN BANKERS ASSOCIATION AND ASIAN

AFFAIRS BUSINESS COUNCEL. This conference was arranged in order to bridge the gap

and unlock the growth opportunities in SME Banking.

A. Events of conference

1. Deliberation by the finest industry experts

2. Deliberation by the Central Bank of Bangladesh i.e., Bangladesh Bank (the

only central bank present in the conference)

3. Case study presentation

4. Problem solving sessions

5. Interactive panel discussions

6. Guru Panel, Fleming Gulf Conference

7. Deliberation by Dato Hafsah Hashim, CEO of SME Corporation Malaysia (He

gave an idea of today’s Asian economies, charting the future directions,

potential rewards of SME untapped market, current issues and challenges of

SME, forecasting the future market of SME

8. Dr. Marcus Lee, Chief Economist of Hampton Court Investment Bank

explored business opportunities for foreign SMEs in China

9. Case study presentation by Mr. Victor Lee Meng Teck, Managing Director,

Group Head of Business Banking, United Overseas Bank. The case study

included key trends affecting SME’s access to finance, opportunities for SME

financing in South- East Asia under adverse economic circumstances and

global recession and new initiatives to support growing and wide range of SME

financing entities.

10. Interactive panel discussion on Increasing loans on micro financing for SMEs

in developing countries, Loan guarantees and bank support to engage in SME

lending, loan vs equity financing, regional development fund vs variety of existing

funds.

11. Deliberation on SMEs by Reynaldo P Orsoline, First Senior Vice President for

Commercial and SME banking, RCBC Bank giving emphasis on the following issues:

a. Maximum automation of SME loans origination

b. Re evaluation with reduced operational costs on SME portfolio

c. Measuring on portfolio management as the core risk management

function d. Managing the F/E risk for SMEs

12. Deliberation by Malcolm Athaide, President and Country Head of Business

Banking, Retail Banking, Inclusive and Social Banking of Yes Bank Ltd on

transformation of risk management in SME lending

13. Deliberation by Donald Lim Kee Hong, Head of Business Development, CIMB

Bank on SME Relationship Management

14. Deliberation by Datuk Zainal Abidin Hj Mohammed, Head of Business

Relationship CIB, Business Banking SME and ICBU of Amislamic Bank, Malaysia

on Islamic Banking for SME which included Shariah compliant financing for SMEs,

Initiative by

MoF, SME Corporation, Association of Islamic Finance Malaysia on 2% rebate for

SMEs

15. Deliberation by Steven Kenneth Miller, EVP & Head of Group Business Banking

of Alliance Financial Group on using analytics to drive relationship

management and innovation in SME banking

16. Deliberation by Syed Mohsin Ali Shah, EVP and Head of Cash

Management, Corporate Banking, Bank Alfalah Limited on challenges and

opportunities for the SME sector

17. Only central bank participated is Bangladesh Bank. Mr. Sukamal Sinha

Choudhury, General Manager of SME and Special Programs Department spoke

on central bank’s policy initiatives and role on SME financing and

development. Initiatives of Bangladesh Bank under the leadership of Dr. Atiur

Rahman were highlighted which received appreciation from foreign countries’

representatives.

18. Case study presentation by Kittima Thongket, SVP, SME Marketing &

Business Development, Bank of Ayudhya PLC on changing SME Banking

landscape, incorporating technology wise, product solutions and marketing

19. Deliberation by Zeeshan Mustafa, SVP & Head of Product Development,

SME Banking, Burj Bank Ltd. on putting the right marketing strategies

20. Deliberation by Rohit Garg, Head of Business Banking, UAE, Egypt and Qatar,

Mashreq Bank PJSC, UAE on the middle east perspective cross settling

opportunities in the SME needs spectrum

21. Deliberation on cross border financing for supporting SME trading by

Azrin Azizuddin, Manager of Business Support & Promotion Department,

Business Division, Exim Bank

22. Roundtable discussion on the following seven topics by seven groups of

participants, each group for one topic

a. Is the dependency on relationship manager a challenge to SME banking

industry? Are banks only looking into ready talent in the market?

b. Are SME clients needed to be taught the preparation of banks required

documents and they will only being entertained at relationship manager

level?

c. What are the key differences between lending to SMEs and lending to

large companies?

d. A r e the new competitors increasing? How does it affect SME banking

in future?

e. Is credit bureau helping lending institutions with their evaluation and

information for a variety of uses?

f. How to identify the external resources (funding/technical support)

to complement their resources

g. How does your strategy give competitive advantage in the target market?

B. Outcome of the program

1. Getting opportunity to hear firsthand experience from world leaders working in SME 2. Sharing knowledge, experience and solutions for overcoming the latest

challenges in the field of SME 3. Beginning of a long term business association with all

4. Exploring new ideas and innovations

5. To go forward for enduring association

C. Sponsoring organizations

1. Cyber village (www.cyber-village.net)

2. Terato tech

D. Supporting associations

1. The Asian Bankers Association

2. Asean Affairs Business Council (www.aabcouncil.com)

E. Media partners

1. Capital Business

2. Asian Banking and Finance

3. MSME News Network

4. Malaysia SME

5. Conference Locate

6. Oxford Business Group

7. Business Islamica

8. The Emerging Finance

9. Asia Today

10. The Paypers

11. Alhuda center of Islamic Banking and Islamic Economics (CIBE)

12. BVents

13. Amilin.tv

14. BanksDaily.com

15. PrivateBanking.com

16. True Banking

F. Participating organizations

1. Agrani Bank, Bangladesh

2. Agro Bank, Malaysia

3. Ahli United Bank B.S.C (AUB), Bahrain

4. AlHuda Centre of Islamic Banking and Economics, UAE

5. Alliance Finance Group, Malaysia

6. AmBank(M) Berhad, Malaysia

7. Amilin TV, Malaysia

8. AmIslamic Bank, Malaysia

9. ASEAN AFFAIRS, Thailand

10. Bangladesh Bank, Bangladesh

11. Bank Alfalah Ltd, Pakistan

12. Bank of Ayudhya, PLC, Thailand

13. Bank of Thailand, Thailand

14. Burj Bank Limited, Pakistan

15. CIMB Bank, Malaysia

16. Cyber Village, Malaysia

17. DFCC Bank, Srilanka

18. EXIM Bank, Malaysia

19. Export Import Bank, Malaysia

20. EXIM Bank, Bangladesh

21. Hampton Court Investment Bank, China

22. Hong Leong Bank, Berhad, Malaysia

23. HSBC Bank, Berhad, Malaysia

24. International Finance Corporation, Vietnam

25. Malaysia Land Transport Authority, Malaysia

26. Malaysia SME and MSME News Network, Malaysia

27. MARA Industrial and Business Development, Malaysia

28. Mashreq Bank, UAE

29. MayBank Berhad, Malaysia

30. Microfinance Bank Bai Tushum and Partners, Kyrgyzstan

31. National Bank of Oman, Oman

32. RCBC Bank, Philippines

33. RHB Banking Group, Malaysia

34. Security Bank Corporation, Philippines

35. SIMAH-Saudi Credit Bureau, Saudi Arabia

36. SME Corporation, Malaysia

37. Societe Generale, India

38. TBA, Egypt

39. Terato Tech Sdn Bhd, Malaysia

40. The Export Import Bank of China, China

41. Times of Money Ltd., India

42. United Overseas Bank, Singapore

43. Vietnam Bank, Vietnam

44. Yes Bank Ltd., India

G. Initiatives to be taken by SME and Special Programs Department, Bangladesh Bank

1. Continue communication with the following organizations for exploring areas

of cooperation in future and make linkages with Bangladeshi organizations:

a. SME Corporation, Malaysia

b. Hampton Court Investment Bank,

China c. Alliance Financial Group

d. United Overseas

Bank e. SME Bank

Malaysia

f. RCBC Bank

g. Yes Bank, India

h. CIMB Bank

i. AmIslamic Bank, Malaysia

j. Bank of Ayudhya, PLC, Thailand

k. Burj Bank Ltd.

l. Mashreq Bank PJSC, UAE

m. Exim Bank

n. ASEAN Affairs Business Council

2. Making linkages of Bangladeshi Islamic Banks with Islamic Banks of Malaysia and

other Islamic Banks of other Islamic Countries.

3. Cooperate with Fleming Gulf for holding very suitable workshop/conference, training

in Dhaka, Chittagong or Cox’s Bazar with participation of all Banks, NBFIs and

SME related organizations of Bangladesh bringing experts from dedicated banks,

organizations around the globe from whom our stakeholder may learn and

forge linkages.

4. Continuing communication with all sponsors, supporting associations for exploring

future cooperation.

Report on

SBBN CEO & Senior Leaders Roundtable, 2013

May 20-21, 2013, Dubai

US based Small Business Banking Network (SBBN), which is a CAPITAL PLUS

Exchange initiative, arranged 2-day CEO and Senior Leaders Roundtable on

the “Future of SME Banking” during 20-21 May 2013 at Media Rotana Hotel in

Dubai. The SBBN is a global industry-building initiative that significantly

helping financial institutions (FIs) in emerging economies to expand their

capacity, competency for serving small and growing businesses. The

CapitalPlus Exchange, however, strengthens FI’s ability to target underserved

entrepreneurs and communities profitably.

The SBBN CEO & Senior Leaders Roundtable is aimed to expand access to

financial services among underserved small business owners and micro

entrepreneurs in emerging economies and to share the learning more broadly

in the field. At this roundtable peers from different countries were connected

to discuss emerging innovations and the future of SME banking. More than 50

key banking experts, leaders and speakers from across the globe gathered

together. SBBN member and non-member participants also attended the

program. They showed commitment to building their small business segment

coming to the global event, discussed the challenges, opportunities and a

vision for this sector. There were presentations and discussions about

international small business banking strategies, tools and resources, case

modeling, expert perspectives and enlightening peer inputs with practical

techniques to strengthen financial institutions. Individual experiences and

insights of all participants contributed to the roundtable’s collaborative

environment.

The donors for running exchange initiatives and programs are International

Finance Corporation (IFC), Belgian investment Company for Developing

Countries (BIO), Ford Foundation, Gatsby Foundation, Levi Strauss Foundation

and Evslin Foundation. SBBN is an initiative of exchange which offers peer

learning services and trainings to financial institutions that serve the small

business banking segment in developing countries around the world.

It is believed that bankers learn best from other bankers who have succeeded

in meeting the demand of small business banking services. The SBBN is a

natural extension of CapitalPlus Exchange’s deep experience in developing,

implementing and managing access to ‘best in class’ expertise and resources

focused on unleashing the provision of finance to small enterprises in

emerging economies.

The only central bank participated in the roundtable is the Central Bank of

Bangladesh i.e. Bangladesh Bank. General Manager, SME & Special Programs

Department Mr. Sukamal Sinha Choudhury spoke on the 1st day of the

program on “SME portfolio credit stress testing program by BB”. He also

focused on initiatives and role of BB as central bank and leadership of

Governor Dr. Atiur Rahman in SME activities in order to ensure employment,

women empowerment, poverty reduction and overall economic development

of Bangladesh. Initiatives of BB as a central bank were appreciated by all the

participants.

The agenda of first day i.e. 20 May, 2013 was on the Future of SME Banking:

focusing on emerging trends, managing risk and customers for the future.

Events of the First day

(i) The keynote session was delivered by Clifton Kellogg, Director of the State Small

Business Credit Initiative, US Department of Treasury (USA) on the “ What’s

Emerging: Forecasting Trends in SME Banking”. This presentation focused on

accommodating changes in order to address the SMEs for future.

(ii) Deliberation by Lynn Pikholz, CEO & President of CapitalPlus Exchange/SBBN

(USA) on Benchmarking Small Business Banking. Findings of the recently

published SBBN’s Small Business Banking (SBB) success factors benchmarking

study were given emphasis.

General Manager , SMESPD, BB Mr. Sukamal Sinha

Choudhury (Extreme Right) spoke in the Roundtable.

Group photo of the participants in the roundtable,

2013

(iii) Principal and Executive Coach of Design for Learning & Change (USA) Mr. Prinny

Anderson presented global future trends in SMEs for accommodating the

changes in human capital management system.

(iv) A deliberation on “Early Warning Signs in SME Portfolio” was done by Mr.

Manish Jaiswal, Senior Director, CRISL (India). This session addressed how risk

ratings and analytics are changing the SME landscape and how FIs can take

advantage of existing data to determine warning signals in their portfolio while

building their business.

(v) General Manager, SME & Special Programmes Department of Bangladesh Bank

Mr. Sukamal Sinha Choudhury delivered a unique presentation on the session

of “SME Portfolio Credit Stress Testing Program-Bangladesh Central Bank

Perspective”. This deliberation mainly focused on the initiatives and forward

looking activities of Bangladesh Bank for SME financing and development; and

also stressed the introduction of Stress Testing program by BB for a systematic

and strong SME banking.

(vi) Dennis J. DiDonna, CEO & Co-Founder, Entrepreneurial Finance Lab (USA)

presented on psychometric testing which focuses on fundamental

entrepreneurial qualities; and which works as a tool to reduce/eliminate the

need for credit report and collateral.

(vii) Traditional Credit Scoring Models were presented by Michael Gallagher, Senior

VP of Wells Fargo Bank (USA). His deliberation has given an idea of

adapting/applying “credit scoring’ in emerging economies where databanks

needed for credit scoring and credit bureaus are currently being scaled up.

(viii) The last session of the 1st day was on an approach to credit scoring and was

moderated by Mr. Rajeev Kakar, EVP & Regional CEO of CEEMEA Region for

Fullerton Financial Holdings (Fullerton) and Founding MD & CEO of Dunia

Finance LLC (UAE).

(ix) At last Ms. Carol Musyoka, Founder & CEO of Carol Musyoka Consulting (Kenya)

summarized all the presentations of the 1st day.

The 2nd day focused on the following sessions emphasing to emerging markets, new

channels and automation technologies. The sessions of the 2nd day also focuses on

unique approaches to successful small business banking practices.

Sessions of the 2nd Day:

(i) At the beginning of the 2nd day Ms. Selin Oz, SME Strategic Planning and

Business Development Manager of Garanti Bank (Turkey) and Ms. Carol

Musyoka, Founder & CEO of Carol Musyoka Consulting (Kenya) jointly

presented on “Women-The Emerging Market of Emerging Markets”. With the

moderation of SBBN’s President & CEO, this presentation focused on how to

overcome the systematic challenges of women entrepreneurs. They gave the

special reference to Garanti Bank (a Turkish Commercial Bank).

(ii) In the next session Mr. Stanislaus Deh, Head of SME Banking, Stanbic (Ghana)

focused Ghana’s experience on global presence of small business in

international trade. This session gave an idea some of the opportunities and

challenges in the African region.

(iii) Andrew Charles McCartney, Senior Global Banking Specialist, IFC (UAE) had a

deliberation on “Evolution of Mobile Banking: Payment module to SME

banking”. This session reviewed the developments of mobile banking

technology from its erstwhile money transfer role to a more robust

infrastructure to assist FIs manage their SME business across emerging markets.

(iv) A presentation on “ Remote Banking on the Move” was delivered jointly by Anil

Nath, Country Head-Business Banking, HDFC Bank Ltd. (India) and Gregory

Chen, Regional Representative for South Asia, The Consultative Group to Assist

the Poor (CGAP), Bangladesh with moderation by Jenny Hoffman, Director of

Risk Frontier (U.K). In this session HDFC shared their experiences on branchless

banking, mobile banking and CGAP provided a status review focusing

Bangladesh’s scenario.

(v) Joaquim Mascarenhas, CEO of Mpower Human Capital Solutions (India) have

made an impressive presentation on “Human Capital Requirements &

Challenges of Remote Banking” with special experiences from the Indian

banking market.

(vi) The last session was delivered by Sandy Vaci, Senior Lecturer, Business School

of the Central European University (Hungary) & Chairman of the Board, Credit

Bank of Moscow (Russia) and V. Sencer Demirel, SME Banking, Strategic

Planning & Central Marketing Manager, Garanti Bank (Turkey) under

moderation of Gerry Monterio, EVP, CapitalPlus Exchange/SBBN (USA). This

session focused on the diversity of SME’s needs and risk profiles that requires

an integrated customer management approach for FI’s success and discussed

the Best-in-Class practices in Garanti Bank which is a leading Turkish bank.

(vii) Finally, the program was closed by a closing remark by Gerry Monterio.

Outcome of the Program

(a) Getting an idea about emerging trend in SME Banking;

(b) Benchmarking of small business;

(c) Early warning signs in SME portfolio;

(d) Stress testing program;

(e) Psychometric testing;

(f) Credit scoring;

(g) Emphasizing women’s program by some banks;

(h) Mobile technology to assist FIs manage their SME business;

(i) Remote banking i.e. agency banking, branchless banking and mobile banking;

(j) Customer management approach for financial institution’s success.

Steps to be taken by SMESPD, BB

(a) Communication and collaboration with SBBN;

(b) Extend cooperation for arrangement of program in Dhaka by SBBN on the following

areas-

a. Program on SME banking strategy for CEOs of all Banks & NBFIs

b. Experience to gather from leading SME focused Banks & NBFIs

c. How to make SME banking profitable?- a program for all Banks & NBFIs

d. Mitigating risk on SMEs

e. Program on credit scoring, benchmarking and psychometric testing

f. Arranging a program on supervision and monitoring of SMEs for central

bankers.

(c) Continue communication with the following organizations and explore areas of

cooperation, make linkages with Bangladeshi organizations for further cooperation-

a. Small Business Credit Initiative, US Department of the Treasury (USA)

b. CRISL/ Risk and Infrastructure Solutions, CRISL (India)

c. Entrepreneurial Finance Lab (EFL), USA

d. CEEMEA region for Fullerton Financial Holdings (Fullerton)-a subsidiary of

Temasek Holding, Singapore

e. Dunia Financial, LLC (UAE)

f. Carol Musyoka Consulting, Kenya

g. Garanti Bank, Turkey

h. HDFC Bank Ltd., India

i. The Consultation Group to Assist the Poor (CGAP), USA

j. Risk Frontier, UK

k. Mpower Human Capital Solutions, India

l. Axis Bank Ltd., India.

(d) Communicate with IFC regarding mobile banking, payment services for SME

banking. For reference communication may be made with Andrew Charles

McCartney, Senior Global Banking Specialist, IFC, UAE.

Participation from the following Organizations-

1. Axis Bank Limited, India

2. Bangladesh Bank, Bangladesh

3. Carol Musyoka Consulting, Kenya

4. The Consultation Group to Assist the Poor (CGAP), USA

5. Commercial Bank of Africa, Kenya

6. Credit Bank of Moscow, Russia

7. CRISL Risk & Infrastructure Solutions, India

8. DCB Commercial Bank Limited, Tanzania

9. Design for Learning & Change, USA

10. Entrepreneurial Finance Lab (EFL), USA

11. Equator Capital Partners, USA

12. Equity Bank, Kenya

13. First Gulf Bank, UAE

14. Fullerton Financial Holdings, Singapore

15. Fullerton India Credit Company Limited

16. Garanti Bank, Turkey

17. HDFC Bank, India

18. IDLC Finance Limited, Bangladesh

19. International Finance Corporation (IFC)

20. Janalakshmi Financial Services, India

21. Khushhali Bank, Pakistan

22. Madison Finance Company Limited, Zambia

23. Mpower Human Capital Solutions, India

24. Pubali Bank Limited, Bangladesh

25. Reliance Financial Services, Gambia

26. Risk Frontier Consultants Limited, UK

27. Sathapana Limited, Cambodia

28. Savings House Mazhnosti, Macedonia

29. SMEP DTM Limited, Kenya

30. Standard Bank Group, South Africa

31. Tanzania Women’s Bank Limited, Tanzania

32. TUHF, South Africa

33. US Department of the Treasury

34. Wells Fargo, and

35. Small Business Banking Network (SBBN), USA.