21 – 22 September 2006, Kuala Lumpur Savings Banks and Foundations, contribution for a sustainable society Marzunisham Omar Malaysia Central Bank “Savings.

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21 – 22 September 2006, Kuala Lumpur Savings Banks and Foundations, contribution for a sustainable society Marzunisham Omar Malaysia Central Bank “Savings banks: the retail gateway to a global market. Driving sustainable development”

2 Contribution for a Sustainable Society: A Central Banker’s Perspective Dato' Mohd Razif Abdul Kadir Deputy Governor Bank Negara Malaysia 21 September st WSBI World Congress

3 The path to a sustainable society … Economic Strategy Stable macro conditions Diversified, competitive and dynamic Financial Sector Development Strategy Facilitate growth Effective, efficient and resilient Inclusive Prom ote susta ined econ omic growt h Hi gh qu alit y Bal an ce d Br oa d- ba se d Eq uit abl e Sust aina ble Soci ety Fa ir & eq uit ab le di str ib uti on of w ea lth Er ad ic ati on of po ve rty

4 Role of Bank Negara Malaysia in Promoting Financial Inclusion Role of Bank Negara Malaysia in Promoting Financial Inclusion Enhance access to financial services Enhance access to financial education Objective: Ensure all economic sectors, regions and communities have access to financial services

5 Promoting Financial Inclusion: Enhance Access to Financial Services Promoting Financial Inclusion: Enhance Access to Financial Services Branching Policy Conscious policy to ensure branches are spread across the country. –No. of branches increased from 131(1960) to 1,987 (2006) –No. of clients served per branch declined from 62,800 to 15,060 –Locally-incorporated foreign banks allowed to establish 4 new branches, including in rural areas Basic Banking Services Ensure that banking customers can enjoy a minimum level of banking services at reasonable costs. –Basic savings and current accounts –Bill payment facility –Interbank-GIRO Microfinancing Develop a vibrant and sustainable microfinance industry. –Obj: To meet the financing needs of the microenterprises I.e. 80% of total SMEs –Players: Development Financial Institutions, Banking institutions –Enhancing credit information infrastructure

6 Promoting Financial Inclusion: Enhance Access to Financial Education Promoting Financial Inclusion: Enhance Access to Financial Education Objective: Increase financial inclusion through greater awareness of financial products and services Children Adult School Adoption Program Financial Education Website Pocket Money Book One-stop advisory centre (BNM LINK) Credit counseling and debt mgmt Awareness on banking and insurance products

7 Thank You