Financial inclusion is important for Southeast Asian countries in orderto speed up regional development, and intensify connectivity andintegration, according to Managing Director of the World Bank SriMulyani Indrawati.
“Increasing financial inclusionin ASEAN will be critical for achieving universal access,” she said,noting that many people have no access to financial tools or credit yet.
According to the WB official, ASEAN countriesrepresent 12.3 percent of the world’s unbanked, with Indonesiaaccounting for 5.9 percent and Vietnam for 2.1 percent.
Small and medium-sized enterprises make up 96 percent of all firms inthe region and contribute between 23-58 percent to the total GDP.However, less than 15 percent of those firms are estimated to havesufficient access to credit.
The WB has agreed toassist ASEAN in measuring levels of financial development, monitoringthe compliance with core international standards for the financialsector supervision, upgrading financial infrastructure development, andbuilding the capacity for the application and enforcement of financiallaws and regulations, she stated.
She shared thatthe WB is supporting authorities in Indonesia and Vietnam to bring lowincome people into the financial system through digitising socialtransfers.
“It is of critical importance that theprivate sector is providing more and more innovative financialservices,” she said, suggesting national authorities encourage thesector to invest more in financial services to create a more conduciveregulatory and policy environment.-VNA
“Increasing financial inclusionin ASEAN will be critical for achieving universal access,” she said,noting that many people have no access to financial tools or credit yet.
According to the WB official, ASEAN countriesrepresent 12.3 percent of the world’s unbanked, with Indonesiaaccounting for 5.9 percent and Vietnam for 2.1 percent.
Small and medium-sized enterprises make up 96 percent of all firms inthe region and contribute between 23-58 percent to the total GDP.However, less than 15 percent of those firms are estimated to havesufficient access to credit.
The WB has agreed toassist ASEAN in measuring levels of financial development, monitoringthe compliance with core international standards for the financialsector supervision, upgrading financial infrastructure development, andbuilding the capacity for the application and enforcement of financiallaws and regulations, she stated.
She shared thatthe WB is supporting authorities in Indonesia and Vietnam to bring lowincome people into the financial system through digitising socialtransfers.
“It is of critical importance that theprivate sector is providing more and more innovative financialservices,” she said, suggesting national authorities encourage thesector to invest more in financial services to create a more conduciveregulatory and policy environment.-VNA
