1 / 7

RECAP DAY ONE

RECAP DAY ONE. Six presentations were done; (2 Central Bank, 1 MFIs, 2 commercial bank and 1 Government) Critical issues faced on the point of view from Central Bank (Mozambique):

zed
Download Presentation

RECAP DAY ONE

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. RECAP DAY ONE • Six presentations were done; (2 Central Bank, 1 MFIs, 2 commercial bank and 1 Government) Critical issues faced on the point of view from Central Bank (Mozambique): • All indicators of financial deepening point to the fact that the Financial sector in is shallow even by sub-Saharan Africa standards

  2. RECAP DAY 1 Cont’d… • Incentives to broaden and widen the financial sector; • Adjustment/relaxation in Reserve Requirement; • Help reducing transaction costs (Central Bank New branches) • Regulatory enhancement (decree No. 57/ 2004;

  3. RECAP DAY ONE CONT’D … Challenges • Introduce savings culture rural communities • Improve basic infrastructure • Break the myth that Agricultural as a risky activity • Introducing an explicit deposit insurance scheme for low income depositors • Create private CRCs

  4. RECAP DAY 1 • Constraints in promoting the expansion of financial services to rural areas • Asymmetric information • Seasonality of income • sparse population base in rural areas • Massive Illiteracy Need to acknowledge that Microfinance is not a panacea (instead, is one of the tools for poverty alleviation – need for sustainability)

  5. RECAP DAY 1 • Point of View for MFIs • Critical Issues • Need for government intervention (Infrastructures, incentives, transaction cost reduction) • Lack of tangible collateral • Importance of value chain • Demand driven approach in delivering financial services • Linkages and partnership

  6. RECAP DAY 1 GOVERNMENT POINT OF VIEW • Play a supportive role – Start up Capital • Rural Finance Strategy (underway) • Fund for facilitating innovation and expansions of rural finance • Partnership between MFIs and Rural Finance • Need to ensure institutional articulation/coordination between FARE and all other stakeholders

  7. THANK YOU!

More Related