ID :
59314
Thu, 05/07/2009 - 10:40
Auther :
Shortlink :
https://oananews.org//node/59314
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STABLE FINANCIAL SYSTEM VITAL IN ECONOMIC GROWTH
KUALA LUMPUR, May 6 (Bernama) -- Continuous functioning of financial systems are a vital element in the economic growth and development process, says Malaysia's Central Bank Governor Dr Zeti Akhtar Aziz.
" As regulators, the focus is placed in ensuring soundness and stability of
the financial system, and thereby provides the platform on which the role of the
banking sector in the economy can be enhanced," she said.
For emerging market economies, in particular, the efforts are to be extended
to building the financial infrastructurea, raising financial
literacy and providing the environment for a more inclusive financial system.
Although the financial systems in most emerging economies continue to remain
sound and provide credit and support the economy, collapse of external
demand has however adversely affected the more open emerging economies.
"Therefore, it becomes more vital given the more adverse implications of the
crisis on the poor segments in the Economy," she said in her opening remarks at
the Asia Regional Forum on Policy and Regulatio /of Financial Inclusion.
In Malaysia, financial inclusion is a high priority in our national agenda.
Since the establishment of the Central Bank, there has been a conscious
policy to have an extensive commercial banking branch network across the
country, to ensure the outreach, in particular, to cover the non-urban areas.
Malaysia now has 10.2 branches for every 100,000 individuals as opposed to
the global median of 8.4 branches for every 100,000 individuals, she said.
She said more than 80 per cent of the population also have some form of
savings account, which has contributed to the financialisation of savings.
Deposits as a percentage of gross domestic product is 180 per cent.
"This means savings is mobilised including from small savers into the
formal financial system. This allows the savings to be channelled to productive
economic activity," said Dr Zeti.
To further drive the provision of basic financial services to the
underserved, the National Savings Bank in Malaysia has been mandated to enhance
the outreach of deposit services and micro-financing.
Their efforts, together with those of commercial banking institutions and
government mandated micro-financing agencies, have resulted in a significant
expansion of micro-financing.
Micro-financing has increased from RM151 million in 2000 to RM1.7 billion in
2008, representing an annual average growth rate of 35 per cent.
-- BERNAMA
" As regulators, the focus is placed in ensuring soundness and stability of
the financial system, and thereby provides the platform on which the role of the
banking sector in the economy can be enhanced," she said.
For emerging market economies, in particular, the efforts are to be extended
to building the financial infrastructurea, raising financial
literacy and providing the environment for a more inclusive financial system.
Although the financial systems in most emerging economies continue to remain
sound and provide credit and support the economy, collapse of external
demand has however adversely affected the more open emerging economies.
"Therefore, it becomes more vital given the more adverse implications of the
crisis on the poor segments in the Economy," she said in her opening remarks at
the Asia Regional Forum on Policy and Regulatio /of Financial Inclusion.
In Malaysia, financial inclusion is a high priority in our national agenda.
Since the establishment of the Central Bank, there has been a conscious
policy to have an extensive commercial banking branch network across the
country, to ensure the outreach, in particular, to cover the non-urban areas.
Malaysia now has 10.2 branches for every 100,000 individuals as opposed to
the global median of 8.4 branches for every 100,000 individuals, she said.
She said more than 80 per cent of the population also have some form of
savings account, which has contributed to the financialisation of savings.
Deposits as a percentage of gross domestic product is 180 per cent.
"This means savings is mobilised including from small savers into the
formal financial system. This allows the savings to be channelled to productive
economic activity," said Dr Zeti.
To further drive the provision of basic financial services to the
underserved, the National Savings Bank in Malaysia has been mandated to enhance
the outreach of deposit services and micro-financing.
Their efforts, together with those of commercial banking institutions and
government mandated micro-financing agencies, have resulted in a significant
expansion of micro-financing.
Micro-financing has increased from RM151 million in 2000 to RM1.7 billion in
2008, representing an annual average growth rate of 35 per cent.
-- BERNAMA
