Meeting on financial inclusion begins in Kathmandu

By A Staff Reporter,Kathmandu, Mar. 8: A meeting of two thematic working groups of Alliance for Financial Inclusion (AFI) has started in Kathmandu from Tuesday.

The meeting of Inclusive Green Finance Working Group (IGFWG) and SME Finance Working Group (SMEFWG) jointly organised by Nepal Rastra Bank (NRB) and AFI started today.

This is the 8th and 20th edition of the IGFWG and SMEFWG meetings respectively.

More than 80 representatives of the central banks and other regulatory bodies of the financial sector of 41 countries are participating in the meeting, which will be held until March 10, according to a press statement of the NRB.

In the opening session of the meeting, Acting Governor of NRB Dr. Neelam Dhungana Timsina pointed out the need to make the policy system strong and effective in order to mitigate the risks to the social inclusion, economic prosperity and financial stability of emerging and developing countries caused by climate change.

She also briefed about the recent legal and policy arrangements adopted by the government of Nepal and NRB for the promotion of green finance.

Acting Governor Timsina also informed about the efforts made by NRB for the promotion of small and medium businesses in Nepal and access to financial resources.

She said that Nepal has received considerable support from AFI in the formulation and implementation of the policy system of financial inclusion in Nepal.

Highlighting the significant contribution of small and medium enterprises in job creation and improvement of livelihood in developing countries, Executive Director of AFI Dr. Alfred Hannig stressed on the need to take concrete steps to minimise the impact of climate change in this sector.

He hoped that the meeting will be fruitful in policy cooperation, exchange of technical assistance and enhancement of capacity development among the member organisations of AFI in this regard.

Appreciating the policy initiative taken by the NRB for the promotion of green finance, Hannig said that this effort of the bank is exemplary for other member institutions.

A joint meeting of both groups will be held on the first and last day of the four-day programme.

On the second and third day, there will be a separate discussion on the issues under the scope of the respective groups, said the NRB.

In the meeting of the IGFWG, there will be a detailed discussion among the participants about financial inclusion as well as the environmental and social impact caused by climate change, the policy practices at the regional and international levels to address it and its impact.

Similarly, the SMEFWG meeting will discuss the contribution of small and medium businesses to the global economy, gender equality and the current challenges in this sector.

In the two meetings, IGFWG and SMEFWG will be chaired respectively by Deputy Director of the Central Bank of Nigeria Dr. Paul Oluikpe and the Director of the Bank of Namibia Dr. Emma Haiyambo.

IGFWG was formed under AFI in 2019 with the aim of promoting green finance by addressing the uncomfortable situation created due to climate change.

Likewise, SMEFWG has been operational since 2013 with the aim of supporting economic growth, sustainable development, job creation and poverty alleviation through the promotion of small and medium enterprises.

AFI was established on January 1, 2008 with the common objective of promoting financial inclusion and expanding access to quality financial services at regional and international levels.

Seven different thematic groups are active under AFI. Similarly, six different thematic areas for policy cooperation have also been identified.

A total of 84 institutions, including the central banks of 76 countries with emerging and developing economies and eight other regulatory institutions are affiliated to AFI's network.