Bank of SMEs aims to launch financial solutions in 2021: CEO

The bank of small and medium enterprises (SMEs) is studying to launch some financing solutions in 2021, such as direct lending, CEO Mohammed Almalki said during a television interview.

He added that the bank aims to stimulate the financing institutions to increase lending and investment. The bank will neither receive deposits nor have the traditional banking system, as it will grant credit lines and relations with financing companies and banks.

Almalki indicated that the bank will deal with any entity that has a commercial register and offer it credit facilities, adding that the indirect lending is one of the bank's main programs that will be expanded to finance the SMEs.

The bank of SMEs will also expand in capital financing and guarantee the SMEs before the financing entities through Kafalah SME Loan Guarantee Program, with 95% of the loan value, the CEO said.

According to data compiled by Argaam, the Small and Medium Enterprises General Authority (Monsha’at) launched the bank of SMEs as one of the development funds and banks of the National Development Fund (NDF). The bank will focus on providing all its products and services in digital form without establishing branches.