Explainer: For SMEs, access to finance isn't the problem. Lending is.

A female entrepreneur visits a bank in Vientiane, Laos. Photo by: Stanislas Fradelizi / World Bank / CC BY-NC-ND

Few people like talking — or reading — about regulation. It's boring.

While frequently mind numbing, if ignored, regulation can often lay waste to the best-laid plans, especially when it comes to accessing financing for small and medium-sized enterprises. As it stands, there are two regulatory challenges that are causing major headwinds for SME lending and capital formation: Basel III regulatory capital requirements and Know Your Client guidelines, which has severely impacted correspondent banking.

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About the authors

  • Andrew haimes profile

    Andrew Haimes

    Andrew, before moving to project management, worked at world-renowned think tanks, major trade associations, in the political realm providing in-depth research and policy analysis on a range of transnational issues. Andrew exemplifies Office:FMA's research methodology and approach to problem solving, focusing on understanding the conflicting and congruent motivations for groups of actors in complex environments.
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    Steve Zausner

    Steve is a co-founder and lead of the advisory practice at Office:FMA, a financial strategy and advisory firm focused on emerging and frontier markets. Steve has successfully led high-profile projects around capital market development, public financial management, entrepreneurship, access to finance, economic growth, investment promotion and has structured many significant innovative financial transactions. Clients have included DFIs, foundations, non-profits and other consulting firms.