MFIs should focus on poor

KATHMANDU, MAR 21:

Microfinance institutions (MFIs) should focus on uplifting the living standards of people below the poverty line, according to the central bank governor.

Inaugurating a seminar on ‘Regulation and Supervision of Microfinance Institutions in SAARC Region’ organised by Nepal Rastra Bank (NRB) here in the valley today, NRB governor Dr Yubaraj Khatiwada said that the regulator has directed microfinance institutions to support in uplifting the people who live below the poverty line.

“The central bank has stressed on easy loan and investment promotion in poverty reduction-oriented programmes,” he said, adding the government has also prioritised women empowerment, human development, capital mobilisation and expansion of financial services in rural areas. “A separate Act on microfinance institutions is a must.”

“Microfinance institutions that target backward people in Bangladesh have been running different income-generating programmes in collaboration with non-government organisations,” informed governor of Bangladesh Bank Atiur Rahman. “Such programmes have been fruitful in reducing poverty,” he added. “Banks — either government or private or joint investment — in Bangladesh must lend 2.5 per cent of total capital to agriculture,” he said, stressing on the need to maintain a high level of institutional good governance.

Source: THT