Download Asia-Pacific Outreach Meeting on Sustainable Development Financing Session 6: Financial inclusion

MINISTRY OF FINANCE REPUBLIC OF INDONESIA Asia-Pacific Outreach Meeting on Sustainable Development Financing
10-11 June 2014
Djuanda Hall, Ministry of Finance Complex, Jakarta
Session 6: Financial inclusion
Presentation
Financial Inclusion for Sustainable Development
by
Atiur Rahman
Governor, Bank Bangladesh
June 2014
The views expressed in the presentation/paper are those of the author(s) and should not necessarily be considered as
reflecting the views or carrying the endorsement of the United Nations. This presentation/paper has been issued without
formal editing. Dr. Atiur Rahman
Governor, Bangladesh Bank Wednesday, 11 June 2014
Jakarta, Indonesia
Mechanisms to channel resources into productivity‐
enhancing and sustainable investments to address financial intermediation weakness
 Deliberate directional bias in monetary and financial policies towards financing of productivity enhancing, sustainability enhancing output initiatives.
 A sustained motivational thrust for mainstreaming socially responsible inclusive and sustainable financing in the institutional ethos of our financial sector.
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Financial inclusion initiatives –reaching the unreached
 Motivational initiative
o Road shows/fair/campaign;
 Policy support initiatives
o
Concessional refinance against agricultural, SME lending and green financing;
o
Area cluster based support packages for MSME;
o
Rural bank branch expansion
o
Off branch agent based financial services delivery using MFIs and Mobile phone/smart card based banking;
o
No‐ frill accounts for farmers and disadvantaged people.
o CSR initiatives;
o Own need based assessments.
 Technology driven
initiatives
o Digitization/modernization of payment system.
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Evidence of financial inclusion through MFS
Urban : Rural customer base = 49 : 51 and Funds are flowing from urban centers to rural regions
Average ticket size per transaction is USD 25
Impact:
Share of agricultural and SME credit as % of total credit holding up
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Impact:
Sustained GDP growth with stable single digit inflation
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Poverty declined substantially in the preceding
decades…
… but more remains to be done, especially for the
extreme poor
% of population below the upper poverty line
% of population below the lower poverty line
 Population in poverty fell from 61.6 million in 2000 to 44.8 million in 2010
 Consumption Gini coeff. unchanged at 0.33 over ten years, evidencing social cohesion
Source: HIES 2005, 2010
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Many thanks
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