Supporting Small and Medium-

Sized Enterprises Professionally

Microbanks in Southeast Europe

Dr. Klaus Glaubitt, KfW

1. Shortcomings of the Financial Sector in SEE

Banking systems have been misused for non-financial

interests

Weak banking supervision

Lack of qualified financing institutions and adapted

credit technologies

Lack of refinancing sources Distrust in local banking sectors restricts mobilization of local

deposits High country risks limit local banks’ access to international capital

markets

3. Loan Development of MEBs (II)

0

5000

10000

15000

20000

Nu

mb

er

of

Lo

an

sTotal Number of Outstanding Loans = 20,102

FEFAD Albania(March 1999)

MEB Bosnia & Herzg.(Nov 1997)

Mirobank Romania4

(Nov 1999)

MEC-Bank Moldova4

(Dec 99)

MEB Kosovo(January 2000)

MFB Serbia(April 2001)

ProCredit Bank Bulgaria (Oct. 2001)3

1 Loan development includes the seven microbanks in which KfW has an equity participation and includes these microbanks’ entire loan portfolio; 2 2002 only until 30.6.2002; 3 Date microbank opened; 4 started out as finance companies -have obtained full banking licenses in 2002Source: IPC Microbank data

4. Outstanding Business and Housing LoansMEB Bosnia and FEFAD Albania

Outstanding business and housing loans MEB Bosnia and FEFAD Albania

December 1999 - September 2002 (EUR mln)

0

5

10

15

20

25

30

December 1999 December 2000 December 2001 September 2002 December 1999 December 2000 December 2001 September 2002

Medium (> 50.000)

Small (10.001 - 50.000)

Micro (1.001 - 10.000)

Micro-micro (< 1.001)

MEB Bosnia FEFAD Albania

0,1%126.1001610,2%66.4101460,3%29.610105

0,0%20.6200-5.2400---

0,0%24.5800-8.8000---

1,1%8.20091-4.8200-1.4700

0,1%19.47014-10.5900-3.3100

0,1%24.870320,5%17.660890,6%14.98085

0,1%28.360240,3%19.300570,2%9.85020

As %

Outstanding Business

Loan Portfolio at Year End

(€ '000s)

Total Business

Loan Write- Offs in Year

(€ '000s)

As %

Outstanding Business

Loan Portfolio at Year End

(€ '000s)

Total Business

Loan Write- Offs in Year

(€ '000s)

As %

Outstanding Business

Loan Portfolio at Year End

(€ '000s)

Total Business

Loan Write- Offs

in Year

(€ '000s)

September 2002

20012000

Total

5. Write offs vs. Business Loan Portfolio

6. Arrears MEB Bosnia (1999 – 10/2002)

0

0,5

1

1,5

2

2,5

3

Jan

99

Mar

99

May

99

Jul 9

9

Sep 9

9

Nov 9

9

Jan

00

Mar

00

May

00

Jul 0

0

Sep 0

0

Nov 0

0

Jan

01

Mar

01

May

01

Jul 0

1

Sep 0

1

Nov 0

1

Jan

02

Mar

02

May

02

July

02

Sep 0

2

Oct

02

7. Number of Disbursed Loans 2002 MEB Bosnia

0

100

200

300

400

500

600

700

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep

8. Volume of Disbursed Loans (in ´000 Euro)

0

500

1000

1500

2000

2500

3000

3500

4000

Jan FebMar AprMay Jun Jul Aug Sep Oct Nov Dec

20012002

9. Number and Volume of national money transfersMEB Bosnia 2001 – 10/2002

0

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

Jan

00

Mar

00

May

00

Jul 0

0

Sep

00

Nov

00

Jan

01

Mar

01

May

01

July

01

Sep

01

Nov

01

Jan

02

Mar

02

May

02

Jul 0

2

Sep

t 02

Oct

02

Vo

lum

e o

f T

ran

sfer

s

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

Nu

mb

er o

f T

ran

sfer

s

Volume Number

10. Number and Volume of international money transfersMEB Bosnia 2001 – 10/2002

0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

7.000.000

8.000.000

9.000.000

10.000.000

Jan

00

Mar

00

May

00

Jul 0

0

Sep

00

Nov

00

Jan

01

Mar

01

May

01

Jul 0

1

Sep

01

Nov

01

Jan

02

Mar

02

May

02

July

02

Sep

02

Oct

02

Val

ue

of

Tra

nsf

ers

0

200

400

600

800

1.000

1.200

Nu

mb

er o

f T

ran

sfer

s

Volume Number

11. Deposit Volume MEB Bosnia(1/2000 – 10/2002)

0

5

10

15

20

Jan

00

Mar

00

May

00

Jul 0

0

Sep

00

Nov

00

Jan

01

Mar

01

May

01

Jul 0

1

Sep

01

Nov

01

Jan

02

Mar

02

May

02

Jul 0

2

Sep

02

Oct

02

12. Development of the Number of ATM vs. Cashbox transactions at MEB Kosovo

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

Dat

e

08.0

4.02

14.0

4.02

20.0

4.02

26.0

4.02

02.0

5.02

08.0

5.02

14.0

5.02

20.0

5.02

26.0

5.02

01.0

6.02

07.0

6.02

13.0

6.02

19.0

6.02

25.0

6.02

01.0

7.02

09.0

7.02

17.0

7.02

25.0

7.02

02.0

8.02

12.0

8.02

20.0

8.02

29.0

8.02

06.0

9.02

16.0

9.02

24.0

9.02

01.1

0.02

09.1

0.02

17.1

0.02

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

Number of ATM transactions

Number of cashbox transactions

Total number of issued cards

Transactions (number) Issued cards (number)