AMERMS Workshop 25. Designing and Implementing a National Strategy for Financial Inclusion (PPT by Angelique Kantengwa)
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

AMERMS Workshop 25. Designing and Implementing a National Strategy for Financial Inclusion (PPT by Angelique Kantengwa)

  • 1,512 views
Uploaded on

FULL TITLE: ...

FULL TITLE:
Process of Designing and Implementing a National Strategy for Financial Inclusion: Challenges and Lessons Learned
ROOM: Aberdare Hall
Translated session: English & French
PANEL:
Chair: Mr. Makarimi Adechoubou, Head of the Regional Office for Southern and East Africa, Inclusive Finance Senior Technical Advisor, United Nations Capital Development Fund (UNCDF), South Africa
Panelist: Ms. Angelique Kantengwa, Senior Director Financial Stability, National Bank of Rwanda, Rwanda
Panelist: Mr. Tafsir Amadou Mbaye, National Director Microfinance, Microfinance Direction Ministry, Senegal
Panelist: Dr. Fodé Ndiaye, Head of the Regional Office West and Central Africa, Inclusive Finance Senior Technical Advisor, United Nations Capital Development Fund (UNCDF), Senegal

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,512
On Slideshare
1,500
From Embeds
12
Number of Embeds
3

Actions

Shares
Downloads
49
Comments
0
Likes
1

Embeds 12

http://www.slideshare.net 5
http://microcreditsummit.org 4
http://www.microcreditsummit.org 3

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. PROCESS OF ESTABLISHING A FINANCIAL INCLUSION PROGRAM IN RWANDA
    Kantengwa Angelique
    Senior Director Financial Stability
    National Bank of Rwanda
    1
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 2. Rwanda’s Finance Industry Landscape
    • Rwanda’s financial sector is relatively small
    • 3. It comprises :
    • 4. 8 Commercial banks
    • 5. 3 Specialized banks (BHR, BRD, CDHR)
    • 6. 1 Microfinance bank
    • 7. 122 Microfinance institutions
    • 8. 8 Insurance companies
    • 9. 1 Public Pension fund (NSSR)
    • 10. 40 Growing Private Pension funds
    • 11. 2 venture capital companies (GROFIN, REIC)
    2
    RWANDA FINANCIAL SECTOR STRUCTURE
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 12. 2005 WB/IMF Financial sector assessment identified challenges facing Rwanda financial sector;
    • Lack of financial depth, undiversified & Oligopolistic banking sector
    • 13. Very low insurance penetration
    • 14. Scarcity of long term debt and a low savings rate
    • 15. Unregulated pension and Insurance sector
    • 16. Scarcity of home mortgages and capital equity
    • 17. Inadequate payment system
    • 18. FSAP made recommendations to address these weaknesses
    • 19. Government of Rwanda launched the FSDP as a comprehensive reform agenda
    3
    ASSESSMENT OF THE SITUATION IN RWANDA (FSAP 2005 and Finscope 2008)
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 20. Financial Access, Percent of Adult Population.
    4
    BANKING AND ACCESS TO CREDITAccess indicators (Source: FinScope Rwanda 2008)
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 21. The figure places the Rwandan “access strand” in a regional comparison with other African countries for which similar FinScope surveys have been undertaken
    5
    ACCESS INDICATORS (continued) Source: FinScope Rwanda 2008
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 22. “To build an inclusive financial system, capable of meeting the financing needs of a rapidly growing economy and a key driver to attain Rwanda’s vision of being a middle- income country and an economic trade and communication hub by 2020”.
    KEY ANCHORS TO THE FSDP
    • Macroeconomic stability
    • 23. Banking and access to credit
    • 24. Long term finance and capital markets
    • 25. Contractual savings regulation (pension and insurance)
    • 26. Payments systems modernization
    6
    RWANDA FSDP MISSION STATEMENT
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 27. Expansion of banks branch networks particularly in rural areas
    Promotion of microfinance institution and building rural cooperative structures
    Domestic savings mobilization- expanding access to formal financial services to the population
    Payment system modernization-mobile banking, agent banking,…
    Establish programs of financial literacy
    7
    FINANCIAL INCLUSION- HOW TO?
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 28. Government: creating a favourable environment without being a provider:; fiscal incentives; promoting financial literacy and financial culture;
    Central Bank :designing the strategy without being a promoter. legal and regulatory framework. BNR support the strategy by proposing laws encouraging the promotion of financial inclusion and encouraging viable and sustainable financial institutions.
    Financial institutions including MFIs: clients oriented businesses;
    Investors and donors: to invest in activities which promote financial inclusion and to support the strategy by participating on the roundtable;
    Beneficiaries: awareness of the role of savings; repayment of loans; bankable projects;
    8
    INSTITUTIONAL FRAMEWORK
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 29. At macro level: Rwanda has put in place an adapted legal and regulatory framework; The Government has adopted a microfinance policy to facilitate broader and deeper access to financial services.
    At meso level : Gvt mobilise funding via the donor community (UNCDF, DFID,..) and its own budget to improve financial market infrastructure and support services to provide more effective pro-rural, poor and MSMEs financial services in the country
    At micro level : AMIR is giving support (training, TA,…) to financial institutions retail capacity to offer financial services tailored to the needs and preferences of their clients
    BNR support the promotion of strategic alliances between traditional financial institutions and MFIs
    9
    MOBILIZING RESOURCES
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 30. KEY CHALLENGES
    • Very low access level to financial services
    • 31. Resource mismatch to finance increasing demand for investment
    • 32. High interest rate spread (8.5%)
    • 33. Low access to finance by SMEs
    • 34. Low lending to agriculture sector (4.5%)
    STRATEGIES
    • Overcoming access problems
    • 35. Domestic Savings Mobilization
    • 36. External resource Mobilization
    • 37. Facilitate access to finance by SMEs
    • 38. Unlocking lending to agriculture
    • 39. Reduce the interest rate spread through the reduction of the financial risk premium overtime
    10
    BANKING AND ACCESS TO CREDIT
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 40. KEY CHALLENGES
    • Supervision of a large mass of growing MFIs
    • 41. Reimbursement of depositors in failed MFIs is limited due to low recovery rate
    • 42. Low operational skills
    • 43. Inadequate legal systems to address MFIs problems
    • 44. The financial viability of large number of existing MFIs remains an issue
    STRATEGIES
    • Strengthen monitoring for MFI’s staff capacity building and improvement in MIS
    • 45. Improve the governance of MFIs
    • 46. Consolidation of small MFIs to reach the minimum size for financial viability
    • 47. Making operational the National Microfinance Consultative Committee (NMCC) to coordinate the industry development
    11
    FINANCIAL INCLUSION AND ACCESS TO CREDIT -MICROFINANCE
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 48. KEY CHALLENGES
    • Low insurance up-take on the demand side
    • 49. Limited penetration of insurers to untapped markets
    • 50. Limited professionalism- on the supply side
    • 51. Limited database on historical performance of the sector
    STRATEGIES
    • Increase & diversification of insurance products such that by 2020 the penetration % of GDP for:
    - Non- life premiums to be 2.5% of GDP (2008:1.20%)
    - Life insurance is 7.5% of GDP( 2008: 0.5%)
    - Total penetration to be 10% (2009: 1.8%)
    • Improve professionalism through education and trainings
    • 52. Draft insurance contract law and mandatory insurance law
    12
    INSURANCE SECTOR
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 53. KEY CHALLENGES
    • Big size of excluded informal sector
    • 54. Low knowledge of pension services in the Rwandan Society
    STRATEGIES
    • Increase coverage from 5.6% in 2007 to 25% by 2020 (contribution/active labor force) through:
    • 55. Extension of current schemes to self employed people
    • 56. The introduction of personal retirement savings account
    • 57. Reform the current social security scheme to secure its long term financial viability
    • 58. Establish a provident fund
    • 59. Set tax incentives to encourage the development of private pension schemes.
    13
    CONTRACTUAL SAVINGS -PENSION SECTOR
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 60. Vision = Changing the Rwandan society from cash-based oriented to one using modern means of cash-less payments by encouraging the usage of non-cash payment instruments.
    KEY CHALLENGES
    Setting modern payment system is very costly and Banks are reluctant to invest
    Connectivity and reliability of the network
    A pricing structure with very high prices
    In general shifting from cash and paper takes awhile amongst the population
    STRATEGIES
    Developing a Card based Payment system
    A strong awareness campaign
    Implementation of the RIPPS (March 2010 to March 2011)
    14
    PAYMENT SYSTEMS
    The Micro credit summit -Nairobi 7th to 10th April 2010
  • 61. Thankyou for your attention
    Questions?
    15
    The Micro credit summit -Nairobi 7th to 10th April 2010