The financial sector seems to be in good health and this is remarkable especially when one looks at the fact that our economy only got out of the world economic crisis a year or so ago. It is not just Stanchart which reported profits, this week Banc ABC also revealed a healthy performance especially from its local establishment. However Lekaukau’s announcement that their SME lending grew by nearly 200 percent indicates that banks are finally coming round to the fact that Small and Medium enterprises are crucial for the economy and any developing economy for that matter. We also note reports by the local press tha Banc ABC officials recognise the role SMEs play in the development of a healthy economy. This is refreshing coming from the banking sector. After all banks could take the safe route and concentrate on the run-of-the-mill strategies which give more attention to those already endowed with resources. It is a welcome move for banks to seriously consider the SME sector and lend a helping hand. It has been our position that with assistance SMEs contribution to our economy could become even more pronounced. Lekaukau says they have tried to avoid start-ups because of the level of risk, that perhaps is expected but the bank’s decision to give SME loans is a welcome move. Going forward banks should innovate and improve their level of service to SMEs.
