Microfinance Key to Sustainable Development
By Kim Jae-kyoung
Staff Reporter
Members of the World Savings Bank Institute (WSBI) have agreed to step up cooperation with international organizations and governments to improve financial access of those being left out of financial services, the Korea Federation of Savings Bank (KFSB) said Thursday.
The agreement came as part of the Seoul Resolution reached by WSBI members participating in the 14th Asia/Pacific regional group meeting held under the theme of "Developing Cooperation Within the WSBI Network" at Lotte Hotel, downtown Seoul, Thursday.
The KFSB said that in order to boost cooperation, the members agreed to work together to develop innovative microfinance programs, as well as to share best practices and to promote exchange training among member banks.
They also agreed to make further efforts to help ordinary people improve their economic and financial conditions by propping up microfinance, a type of banking service that is provided to unemployed or low-income individuals who would otherwise have no other means of gaining financial services.
Finally, representatives from 10 member countries, including Thailand, Malaysia, India, and the Philippines, agreed to boost microfinance services by creating a new opportunity through business cooperation among members.
Delivering the message of the Seoul Resolution, KFSB President Kim Seok-won said, ``The Seoul Resolution will be a cornerstone to strengthen our cooperation to develop microfinance.''
He added that the Seoul meeting will serve as an excellent platform for members to exchange views and discuss the direction of financial services to disadvantaged people and small companies.
``To develop trade and cooperation among member banks beyond just declaration and to produce mutual benefits, it is important to share best practices, as well as information and experience,'' said Kim, who is hosting the two-day regional meeting.
``Member banks in the Asia/Pacific region should put their heads together to develop new business models and areas related to microfinance to strengthen cooperation,'' he added.
In a congratulatory speech, Financial Services Commission (FSC) Chairman Jun Kwang-woo said that savings banks should provide better financial services for ordinary people.
``I hope the Seoul meeting will be an opportunity to extend mutual cooperation and share know-how among WSBI members,'' he said.
He added that offering a financial education for those being left out of financial services is very important, stressing, ``The KFSB and member banks are working together to develop a specialized program for such people.''
He added that establishment of ATM network among member banks in the Asia/Pacific region, one of the key agendas of the meeting, would contribute to helping ordinary people get easier access to more financial services.
During the meeting, WSBI President Jose Antonio Olavarrieta, who is heading the WSBI delegation, said that microfinance is no longer limited to developing countries and it has become a global phenomenon with the recognition of the need for inclusive financial services also in the developed world.
``I recommend that Korea give more attention to the importance of microfinance for sustainable development,'' he added. ``Korean savings banks should play an active and critical role to revitalize the microfinance in Korea.''
A total of 150 delegates from 10 countries and 16 savings banks in the Asia/Pacific region, as well as from local savings banks participated in the annual meeting designed to discuss and drive issues relevant to the region's financial sector.
WSBI is the global voice of retail and savings banking and represents 109 banking organizations from 92 countries. As of the beginning of 2006, combined assets of member banks amounted to more than 8,081 billion euro, with operations through more than 191,000 branches and outlets