A review done by MTI in 1997 revealed that despite the involvement of many NGOs and Government Ministries and agencies, the availability of finance to small and micro businesses remains poor. This is one of the major obstacles to the ability of this important sector to realise its full social and economic potential and role.

Through its 1997 Policy and Programme on Small Business Development, the MTI proposed an intervention by the Government in various forms. One of these is the creation of A Credit Guarantee Scheme with the aim of encouraging commercial banks to lend to small businesses. This saw the establishment of the Small Business Credit Guarantee Trust (SBCGT). Its primary function is to provide guarantees to SMEs who acquire loans from commercial banks.

The Government has taken a decision to transform the Trust into a self-financing SME bank, whose services will focus but not be limited to lending and providing other products tailored to the needs of SME sector.

A detailed study has been carried out on the establishment of such a bank.