Public Lending Schemes for SMEs in Asia and the Pacific: Lessons from the Republic of Korea and the United States
This brief draws on experiences from the Republic of Korea and the United States to provide insights on how public lending schemes can support small and medium-sized enterprises (SMEs) in developing countries in Asia and the Pacific.
Due to perceived high risks and low liquidity, many SMEs in Asia and the Pacific find it challenging to access loans. Public lending schemes have proven successful in improving access to credit for SMEs in the Republic of Korea and the United States. In Asia and the Pacific, governments in developing countries should look to establish specialized banks and government-supported organizations to set up public lending schemes for SMEs.