Priority lending programs


By encouraging financial intermediaries to carry out targeted lending programs, governments can promote access to finance for inclusive businesses. Priority lending programs can allocate a certain portion of a country‚Äôs total lending budget to a few key sectors or regions where inclusive businesses tend to be most active, such as agriculture, health, education, energy, water, and sanitation. 

Additionally, governments can increase access to finance for inclusive businesses by encouraging banks to directly support these businesses in specific regions or communities and by attracting banks and other mainstream institutions to invest in funds that finance them. It is important to note that improvements in access to finance for inclusive businesses are not dependent on banks alone, but there is also a growing group of non-bank financial institutions (NBFIs) funding these businesses.

Policy Instruments: Countries: Topics: