small loans for big dreams: how TaiLong Bank winning both the hearts and the markets
In choosing between issuing a 1-billion loan to one massive state-owned enterprise or lending 1 million to a thousand smaller companies, most would prefer the first option as it seems more convenient and reliable. However, Zhejiang Tailong Commercial Bank (TaiLong Bank) takes the less-traveled path – the bank provides financial services to small-and-micro-enterprises (SMEs). Since its inception, the bank has cumulatively provided over ¥150 billion (around $23 billion) in loans, with an average loan size of ¥500,000, to its clientele, over 90% of whom are peasants-turned-entrepreneurs. ...