M'SIA'S CENTRAL BANK TO FORMULATE NEW BLUEPRINT FOR FINANCIAL SECTOR

KUALA LUMPUR, Jan 18 (Bernama) -- Malaysia's central bank Bank Negara
Malaysia, is in the process of formulating a new blueprint for the financial
sector for the next decade which would ensure the development of a more
inclusive financial system.

Disclosing this in her welcoming remarks at the Financial Inclusion Advisers
Programme here Monday, its Governor, Tan Sri Dr Zeti Akhtar Aziz said Malaysia
would continue to ensure that all segments of society continue to have
access to financial services.

While the current global economic slowdown posed a challenge to the
financial inclusion agenda, the country's high level of financial inclusion is
the result of conscious policies to build a progressive and inclusive financial
system, Zeti said.

The financial inclusion measures have seen positive results so far, with the
country having among the highest level of deposit and loan accounts in the
world.

The text of her speech was released here Monday.

Zeti said the strategies implemented had generated six characteristics of
the financial system, firstly a business environment that allowed a diverse
range of financial service providers to thrive and compete.

The financial system also includes foreign financial institutions through a
series of sequenced liberalisation measures.

Secondly, basic banking products and services have been made available
at reasonable costs, and thirdly a diverse set of delivery channels had been
introduced to ensure widespread access to financial services.

"The central bank's branching policy has encouraged financial institutions
to establish an extensive branch network across the country to ensure widespread
physical access to financial services," Zeti said.

Another feature of the system has been the enhancement of financial literacy
and protection of consumer rights. Towards this, a Consumer Protection Framework
has been developed to enhance the disclosure standards of financial products and
services, the various dispute resolution mechanisms and to institute fair
practice amongst the financial service providers.

Supporting financial infrastructure to facilitate the operations of
financial institutions has been another important feature of the financial
system.

In this regard, credit bureaus have been established to enhance access to
financing by encouraging borrowers to build credit records, Zeti said.

Finally, recognising the importance of human capital development in the
industry, the central bank also established several centres of excellence for
learning for the overall financial services sector, including covering the areas
of corporate governance, leadership development and Islamic finance.

Meanwhile, Bank Negara Malaysia and the Japan International Cooperation
Agency (JICA) have jointly organised the ongoing Financial Inclusion Advisors
(FIA) Programme here.

The five-day programme, beginning Monday will provide a platform for
microfinance practitioners in the region to share their experiences in enhancing
financial inclusion with regulators and microfinance practitioners from Kenya,
Malawi, Tanzania, Uganda and Zambia.

Discussions will focus on recent developments in microfinance in Africa,
Malaysia, India and Indonesia, development of agriculture microfinance, micro
credit practices and credit risk management.
-- BERNAMA