Mobilizing private sector resources through commercial banks

Commercial bank lending in developing countries has tended to cluster in urban conglomerations and concentrate on funding large farming enterprises, consumer-based industries and the foreign-trade sector.
Counter Claim:
It is clear that formal financial institutions are suited to meet the demand for large and long-term credit because of their reliance upon the pooling of funds from deposits and maturity transformation, and because they can also exploit economies of scale and of scope in their operations. Their structure is conducive to meeting the financial needs of larger industrial and commercial units, as well as those of affluent households, but they are not suitable for providing financial services to small farmers, small-scale entrepreneurs and the poor.
Type Classification:
E: Emanations of other strategies
Related UN Sustainable Development Goals:
GOAL 7: Affordable and Clean EnergyGOAL 8: Decent Work and Economic Growth