Building Inclusive Financial Sectors for Development (Blue Book)
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Table of Contents
Chapter I ... Setting the Stage for Building Inclusive Financial Sectors
Policy must be designed at the country level
Why inclusive financial sector development matters
The emergence of outreach considerations
The state of financial access today
A vision of inclusive finance
Overall policy context for enabling inclusive finance
Why inclusive financial sector development matters
The emergence of outreach considerations
The state of financial access today
A vision of inclusive finance
Overall policy context for enabling inclusive finance
Chapter II ... What Limits Access to Formal Financial Services?
Issue 1. Who you are and where you live matters
... Cultural norms matter
... Gender matters
... Age matters
... Legal identity matters
... What you have learned matters
... Where you live matters
... Gender matters
... Age matters
... Legal identity matters
... What you have learned matters
... Where you live matters
Issue 2. How you make your living matters
... Level of income matters
... Type of occupation matters
... Type of occupation matters
Issue 3. Compromised confidence in financial institutions
... Personal relationships with customers
... Impact of national financial developments
... Impact of national financial developments
Issue 4. The attractiveness of the product matters
... Savings accounts
... Credit products
... Payment services
... Insurance
... Credit products
... Payment services
... Insurance
Conclusion
Chapter III ... Why Retail Financial Institutions Can Serve Poor and Low-income People Better
Issue 1. Profitability, risk and incentive structures
... Profitability
... Risk
... Comparing the profitability with other lines of business
... Incentives and disincentives to serve the market
... Risk
... Comparing the profitability with other lines of business
... Incentives and disincentives to serve the market
Issue 2. "Small is beautiful, but large is necessary"
... The high costs of small transactions
... Pricing strategies
... Economies of scale and scope
... Cost control and increasing efficiency
... The heart of inclusive finance: multiple sales points and products
... Pricing strategies
... Economies of scale and scope
... Cost control and increasing efficiency
... The heart of inclusive finance: multiple sales points and products
Issue 3. Lack of innovation prevents closing the gap between supply and demand
... The operating environment
... Internal systems and practices
... Management
... Governance matters
... Internal systems and practices
... Management
... Governance matters
Conclusion
Chapter IV ... Access to Financial Markets: A Challenge for Microfinance Institutions
Issue 1. Impact of weak financial sectors on MFIs
Issue 2. Limited access of MFIs to domestic financial markets
... Institutional factors limit the ability of MFIs to access financial markets
... Constraints on financial market confidence
... A role for guarantees
... Bonds, securitization and equity investment
... Agency relationships, strategic alliances and other partnerships
... Donor funding can be a disincentive to financial market access
... Constraints on financial market confidence
... A role for guarantees
... Bonds, securitization and equity investment
... Agency relationships, strategic alliances and other partnerships
... Donor funding can be a disincentive to financial market access
Issue 3. International borrowing: opportunity and risk
... The role of socially oriented international investors
... Increasing concern about foreign exchange risk
... Increasing concern about foreign exchange risk
Issue 4. Drawing resources from the domestic economy: Savings as an alternative funding source
Conclusion
Chapter V ... The Policy Framework and Public Sector Role in Inclusive Finance
Issue 1. Country level policy frameworks: from vision to strategy
... Country visions and strategies
... Public policy, politics and inclusive finance
... Public policy, politics and inclusive finance
Issue 2. There is still no consensus on the liberalization of interest rates
... Interest rate ceilings continue to exist or have been reintroduced
... Interest rate ceilings do not solve the policy problem
... Legitimate concerns about high interest rates
... What solves the policy problem?
... "Smart subsidies" and interest rates
... Interest rate ceilings do not solve the policy problem
... Legitimate concerns about high interest rates
... What solves the policy problem?
... "Smart subsidies" and interest rates
Issue 3. How much government involvement in financial intermediation?
... Experiences of state-owned banks
... Priority sector lending
... Priority sector lending
Issue 4. The role of subsidies and taxation
... Subsidies: valuable or counterproductive?
... Taxation: incentives and disincentives
... Taxation: incentives and disincentives
Issue 5. Policies to broaden and strengthen financial infrastructure
... Infrastructure that enhances risk mitigation
... Infrastructure that enhances transparency
... Infrastructure that increases efficiency and reduces costs
... Infrastructure that enhances innovation
... Infrastructure that enhances transparency
... Infrastructure that increases efficiency and reduces costs
... Infrastructure that enhances innovation
Conclusion
Chapter VI ... Legal Models, Regulation and Supervision in the Context of Inclusive Finance
The importance of regulation and supervision
Particular considerations for developing countries
Particular considerations for developing countries
Issue 1. There is still uncertainty about what, when, and how to regulate
... The range of institutional models is frequently limited
... When to regulate
... What kind of regulation and who regulates?
... How to regulate microfinance
... When to regulate
... What kind of regulation and who regulates?
... How to regulate microfinance
Issue 2. The challenges of applying tiered regulation and risk-based supervision to microfinance
... Tiered regulatory structures
... Risk-based supervision
... Risk-based supervision
Issue 3. The need to focus on the adequacy of supervision
... A range of supervisory issues
Issue 4. Should regulation incorporate access to financial services as a policy goal?
... Adding outreach explicitly to the regulatory framework
... Experience with regulatory treatment of microfinance
... Regulating to increase access with soundness
... Experience with regulatory treatment of microfinance
... Regulating to increase access with soundness
Issue 5. New regulatory issues that need to be considered
... Introducing deposit insurance schemes
... Regulatory response to foreign exchange risk
... A role for international standards in regulation and supervisory practices
... Regulatory response to foreign exchange risk
... A role for international standards in regulation and supervisory practices
Conclusion
Chapter VII ... Policy Issues and Strategic Options
Option Set 1. Government intervention in the market for financial services
- how much intervention, what kind, where and when?
Option Set 2. How can we achieve affordable and sustainable interest rates?
Option Set 3. How to fashion financial infrastructure for inclusive finance?
Option Set 4. What should regulators and supervisors do to foster financial inclusion?
Option Set 5. How to promote consumer protection?
Option Set 6. How many financial institutions and of what types?
Option Set 7. How can "access" be built into financial sector policy?
Conclusion
- how much intervention, what kind, where and when?
Option Set 2. How can we achieve affordable and sustainable interest rates?
Option Set 3. How to fashion financial infrastructure for inclusive finance?
Option Set 4. What should regulators and supervisors do to foster financial inclusion?
Option Set 5. How to promote consumer protection?
Option Set 6. How many financial institutions and of what types?
Option Set 7. How can "access" be built into financial sector policy?
Conclusion
Chapter VIII ... Dialogue as a Prelude to Action
Setting the stage for dialogue at the national level
Important process considerations
Conclusion
Important process considerations
Conclusion
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