SBP DEPUTY GOVERNOR ASSURES FINANCIAL INCLUSION WILL REMAIN A KEY POLICY
OBJECTIVE OF THE STATE BANK
Mr. Ashraf Mahmood
Wathra, Deputy
Governor Banking, State Bank of Pakistan has outlined five key aspects of the
Microfinance Summit 2013, in his closing and way forward remarks while chairing
the Closing Session of the Microfinance Summit at a local hotel in Islamabad
today.
He said that the summit was a huge success in bringing together
all the stakeholders who shared their unique experiences and developed
recommendations to enhance access to inclusive financial services for the
financially excluded economic and geographic segments.
Mr.Wathra said that financial inclusion movement has prompted innovative
developments in Pakistan and elsewhere. However, it is often that ‘innovations’
are viewed differently by various stakeholders. It is, therefore, important to
keep on analyzing and discussing new ideas and solutions to agree on the way
forward and chart the avenues for further collaborations to reach out to the
marginalized, poor and low-income people.
He
said that the summit has developed broader understanding of the opportunities
and challenges facing the microfinance sector in Pakistan:
·
First, Government offered full support to the development
of microfinance sector on sustainable basis and the participants have
appreciated the vision of the new Government. I am sure that this will help us
in taking the microfinance to the next level.
·
Second, microfinance sector has received a lot of support
from the government, State Bank, and donors in the form of an enabling policy
and regulatory framework and funding support resulting in transformation of
MFIs into regulated microfinance banks, a well-capitalized and diversified
micro-banking sector and catalyzing innovations in delivery channels etc., We
have a long way to go especially in increasing sustainable financial access and
usage of a broad range of services (savings, credit, payments, and insurance)
to the most-excluded segments such as poor entrepreneurs in under-developed
areas, women and youth. In this context, it is important to adopt a market
segmentation approach which would help us in analyzing the gaps at different
segments, and develop timely and appropriate policy responses and solutions.
·
Third, the summit has developed consensus that the focus
of microfinance industry should now be on improved governance, deepening the
strength of management teams and improved system of control and information
flow. Fourth, it is encouraging to note that microfinance
players are keen on finding ways to lower their operating costs and offer
convenience to their clients through partnerships with branchless banking
providers.
·
Fifth, the summit has also highlighted the importance of
value chains and its linkages with improving livelihoods.
In the end, Mr. Wathra reassured that financial inclusion will remain a
key policy objective of the State Bank, and it will continue to provide full
support to the microfinance sector as it is an important policy tool to promote
inclusive economic growth.
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