1 / 7

citiesalliance

F INANCIAL S ERVICES : A C ROSS -C UTTING T HEME O CTOBER 8, 2002. www.citiesalliance.org. Outline. I. CA Strategy to Date II. CA Key Initiatives A. The Shelter Finance for the Poor Initiative · Overview · Snapshots – What practitioners are learning

hamish-cummings
Download Presentation

citiesalliance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FINANCIAL SERVICES: A CROSS-CUTTING THEME OCTOBER 8, 2002 www.citiesalliance.org

  2. Outline I. CA Strategy to Date II. CA Key Initiatives A.The Shelter Finance for the Poor Initiative ·Overview · Snapshots – What practitioners are learning · Emerging policy recommendations · Early Results B.Community-led Infrastructure Finance Facility (CLIFF) III. Next Steps

  3. I. CA Strategy To Date FIs City Poor Poor Cities ·Poor’s demand for housing and housing finance services is high ·Access to capital tailored to their needs is big constraint  ·Increasing recognition of the incremental way poor people build · Mortgage finance and old housing paradigm not working · Recent entry of financial institutions specialized in serving the poor commercially  

  4. II. CA Key Initiatives A. Shelter Finance for the Poor Initiative  Overview ·A private financial institution led initiative: networks of practitioners and supporting partners ·Purpose: look at emerging practice and learn how best to support it (FIs, govts and donors) ·Approach: learning by doing and lateral exchange ·The cases: SEWA, Mibanco, Funhavi, Ecuador, Kenya ·Analytical Framework: scale, financial sustainability, client poverty levels

  5. CA Key Initiatives • Snapshots – What practitioners are learning • MIBANCO (PERU) • ·Context • · Product: terms, amounts, pricing, forms of guarantees • · Clientele • · Service delivery methodology • · Early results: scale, portfolio quality and profitability • · What would it take to go to scale?

  6. CA Key Initiatives Emerging Policy Recommendations · Pro-poor financial institutions in the driver’s seat ·Key Constraint to scale is retail institutional capacity Donors: ·Institutions: portfolio quality, client outreach, sustainability, track record ·Instruments: Facilities that provide medium term capital to FIs (3 to 5 year) ·Flexible funding: institutional capacity building, pilots, institutions, not `projects’ ·Promote/fund:research and knowledge dissemination ·Long-term view: building institutions and not `projects’ Governments: • Create the enabling environment that follows the institutions and the practice • ·Land availability and the security of tenure • ·Sound financial sector policy

  7. CA Key Initiatives Early Results ·Dissemination: own and leveraged ·Practitioners doing more already (Accion, Indonesia, Vietnam)* ·Donors rethinking modes of support (SIDA, IaDB) • Governments recognizing new `paradigm’ (Indonesia, South Africa) Next Steps ·PPF 2003 ·Learning/Dissemination ·Facilities for medium term capital to FIs

More Related