Downscaling for Postal Savings Bank of China

The primary goal of the assignment was to demonstrate the practical usage and impact of key approaches for achieving commercially viable and customer oriented micro-credit operations.

The technical assistance provided by BFC’s experts consisted of three main components:

  1. piloting of a loan product for urban microenterprises;
  2. demonstration of core features of lending policies and procedures;
  3. training of loan officers and managers.

As part of this assignment BFC supported PSBC in:

  • Developing and guiding the launch of a new collateral-free product for urban microenterprises with a maximum loan amount of RMB 50,000 (approximately USD 1,300);
  • Conducting a three-day seminar for 13 loan officers and managers of PSBC on financial analysis of microenterprises;
  • Developing and Introducing policies and procedures for microlending in the areas of marketing, credit analysis, monitoring, and collections;
  • Providing day-to-day training to loan officers by participating in interviews with clients and analyzing their businesses;
  • Providing recommendations to PSBC on further development of the microlending program and to GTZ on future cooperation with PSBC.