“It is hard to reach the poor people with the financial resources at our disposal. [break]
MFIs have to integrate their programs with the government programs to better serve the poor,” Khatiwada said, addressing the SAARC level microfinance conference that kicked off here from Tuesday. He also stressed on the need for holistic mobilization of MFIs in micro-insurance, targeting the poor people, in addition to the financial use. He also underscored the need to properly regulate the activities of MFIs through effective regulations to ensure their sustainability.
The governor, however, stressed on the need to replicate MFIs in customized and need-based manner as haphazard replication of MFI programs will not yield positive results.
Inaugurating the two-day ´Regional Conference on Microfinance in SAARC Countries: Sharing Lessons and Way Forward´, Finance Minister Surendra Pandey hailed the progress by Bangladesh in microfinance sector and urged Nepalis to take advantage from the experience of Bangladesh.
“Bangladesh is globally considered as a pioneer in the field of microfinance. I request Nepali delegates to take optimum benefit from Bangladesh´s rich experience,” Pandey said. “Given the multiplicity of institutions engaged in microfinance sector, the government is working to set up a Second Tier Institutions (STI) to regulate different types of MFIs.
He called upon the delegates to work out modalities on effective use of remittances for overall development of SAARC countries through microfinance.
The conference is jointly organized by the Institute of Microfinance (InM) of Bangladesh and the Rural Microfinance Development Centre Ltd (RMDC) of Nepal in cooperation with the SAARC Secretariat.
Speaking on the occasion, Shankar Man Shrestha, CEO of RMDC, expressed concerns over the growing ill-practices in the microfinance sector. “Though there are many positive developments in the microfinance sector, some MFIs are drifting away from their very mission of serve the poor,” he said, adding, “Some MFIs are found extending big loans to well-off clients.”
Dr Moslesh Uddin Sadeque, interim executive director of InM, underlined the need to forge collective effort among MFIs of SAARC region to overcome the challenges existing in the sector.
SAARC Secretary General Dr Sheel Kanta Sharma highlighted the role of MFIs to uplift the lives of poor people to alleviate poverty in the region.
Wahiduddin Mahmud, chairman of InM, said about 30 million borrowers are taking advantage of microfinance in Bangladesh. “We are revolving over $3 billion annually in Bangladesh, despite the fact that many people are still unaware of microfinance,” Mahmud said.
The conference is aimed at disseminating the finding of a study conducted by InM on ´State of Microfinance in SAARC Countries´ among the stakeholders in the region and seeking ways forward to face the challenges in the microfinance sector.
About 200 participants, including 70 international representatives, are taking part in the conference.
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