ADB to host 2-day reg’l confab on microfinance

The Asian Development Bank (ADB) will host a two-day regional conference starting tomorrow on the positive growth of microfinance in the region and developments towards its commercialization.

"Microfinance is considered today as one of the effective development tools for poverty reduction. However, microfinance development is an unfinished agenda and a majority of the poor still do not have access to a broad spectrum of financial services," said Nimal Fernando, ADB’s lead rural finance specialist.

The conference, which will bring together policymakers, microfinance service providers and academicians from about 20 countries, will address issues such as the future of commercial microfinance in Asia, challenges of reaching the poorest with microfinance services, and the role central banks play in promoting microfinance.

It will also explore whether alternative financial institutions, such as rural development banks, postal savings banks, and national savings banks, have a significant role in microfinancing.

The ADB wants to promote the commercialization of microfinance beyond the dole-outs from non-government organizations (NGOs).

It wants to increase public awareness and knowledge about cutting-edge issues in microfinance, share good practices, and promote sustainable programs of assistance and operations that will eventually close the wide gap between the demand for, and supply, of sustainable financial services for the poor.

Incidentally, the United Nations launched the International Year of Microcredit 2005 as part of efforts to build support for making financial services more accessible to the poor.

Key officials of central banks of developing nations such as Mongolia, Pakistan and the Philippines will share their experiences, including representatives of the World Bank, the United States Agency for International Development (USAID) and the United Nations Development Programme.

ADB has supported the microfinance industry in the region since 1988 through loans, grants, and policy advice. In 2000, ADB formulated a Microfinance Development Strategy to further strengthen its assistance to the sector.