Information opacity arising from MSEs’ lack of accounting records, inadequate financial statements or business plans also makes it difficult for potential creditors to assess the creditworthiness of MSE applicants. Besides, high administrative/ transaction cost of lending small amounts also queers the pitch for banks insofar as MSE financing is concerned.
4  BIS central bankers’ speeches  Further, the existing system of banks’ credit appraisal and related processes also need to be geared to appraise the financial requirements of MSE sector. 12. Alongside extending the reach of their banking services, banks need to improve and customize the products offered, fine tune the pricing aspects and enhance the quality and efficiency of services.