PPCBank and IFC team up to help SMEs

South Korea-based PPCBank on Friday entered into an agreement with the International Finance Corporation (IFC) to foster the growth of small businesses in Cambodia.

According to a press release, the new collaboration is part of the bank’s strategy to enhance financial inclusion in Cambodia, facilitate growth, and create jobs.

Under the new partnership, PPCBank will use IFC’s risk-sharing facility to help small and medium enterprises (SMEs).

Through the risk-sharing facility, PPCBank will be able to provide a more inclusive service to existing customers, particularly SMEs and women-owned enterprises, the company said.

The facility will be used to cover loans extended to SMEs, reducing the risk while, at the same time, allowing PPCBank to serve more customers and support their business growth, it added.

In addition to sharing the risk on the covered portfolios, IFC will provide advisory services designed to expand PPCBank’s capacity to confidently extend more loans to more growing enterprises.

“These business segments have been underserved because there is very little historical loan performance data, which would otherwise be used to make responsible lending decisions, which further constrained these businesses’ capacity to grow,” said Shin Chang Moo, PPCBank president.

“These entrepreneurs have real potential to impact Cambodia’s future growth. At the same time, PPCBank is committed to providing them with the right financial and funding solutions to empower and enable them to grow their businesses,” he said.