A transformation in the West Bank: OPIC-supported small business lending facility featured in International Banker
One of the best ways to support economic growth, especially in developing markets, is to expand access to financial services. When small businesses can obtain capital, they are better equipped to grow their businesses and hire more workers.
But what happens to the banking sector when it commits to these underserved populations? Last year, when OPIC traveled to the West Bank to explore the impact of a small business lending facility we support, we found that small businesses weren’t the only ones to benefit. The banks benefited too.
As more small business borrowers joined the formal economy, they began using other banking services. Banks also became more skilled at processing loans and assessing risk. Ultimately, a project that had been designed to benefit a specific group of small businesses in the West Bank came full circle to return benefits to the local financial community.
Roxanne Alozie, OPIC Director of Development Outcomes, details the benefits to small businesses and local banks in this piece in International Banker.