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Research: Big Banks fake micro loans

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Ba Shusong, a Researcher from the Development Research Center, China, said Banks are still setting tough standards for small firms thereby making loans difficult to obtain. “Everyone right now talks about financing for small and micro sized firms, but there is a portion of Big Banks who are faking their lending to small and micro-sized firms,” said Ba while speaking to a forum in Boao, southern China.

Based on the report on developing countries, the story is not different in Nigeria, as most of the leading banks demand for collaterals which are not usually available to their customers. “The lack of appropriate collateral in developing countries is one of the basic source of financial difficulty for small and micro businesses,” the study confirms. It recommended that banks expend their pool of acceptable collateral to include intellectual property, warehouse warrants, and equity.

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