GXBank, a Malaysia-based digital bank, said on September 14 that it signed a risk-sharing agreement with the International Finance Corporation (IFC), the World Bank Group’s private-sector arm, to support a target micro, small, and medium enterprise (MSME) loan portfolio of up to US$110 million.

Under the arrangement, IFC will provide up to US$4.95 million in unfunded first-loss coverage alongside existing local guarantee frameworks.

These can include the BNM-CGC Guarantee Scheme, which is designed to improve access to financing for small and medium enterprises through participating financial institutions.

GXBank said the structure would help it lend to underserved businesses with limited credit records or physical collateral, while improving capital efficiency under Bank Negara Malaysia frameworks.

It also aligns with IFC’s broader use of risk-sharing tools to expand lending to MSMEs.

🔗 Source: GXBank

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