Asian-Pacific members of the World Savings Bank Institute (WSBI), an association of retail and savings banks located in 92 countries, have committed to improving microfinance services and giving poor people greater access to financial services. The agreement was part of the Seoul Resolution, adopted at the 14th annual meeting of WSBI members in the Asian-Pacific region. About 150 delegates from 10 countries and 16 savings banks participated in the meeting.
The theme of the meeting was “Developing Cooperation Within the WSBI Network”, and one of the major agenda points of the meeting was to encourage WSBI members to cooperate with international organizations, governments and other members to improve microfinance services. This is to include the sharing of WSBI and KFSB members’ experiences and best practices in the area of microfinance for the purpose of developing innovative business models. WSBI President, Jose Antonio Olavarrieta added that, “Korea should share its best practices with members of the WSBI networks to define what would be the most appropriate and adapted microfinance model for Korean savings banks”. Olavarrieta also believes a closer link between Korean banks and MFIs will provide both parties with mutual benefits – MFIs would have access to deposit facilities, liquidity management services and emergency credit lines while banks would expand their client base and operations through the MFI network.
The Seoul Resolution also calls for the Korea Federation of Savings Banks (KFSB), a nonprofit organization, to work with the WSBI to revitalize microfinance in Korea. Seok-Won Kim, Chairman and CEO of KFSB, says that his organization will “establish various microfinance systems, in collaboration with the Korean government. These projects will include the recovery of credit-defaulters and the enlargement of small loans for individuals of low or poor credit. Mr. Kim also added that the Korean government is in the process of launching an initiative called New Start 2008 Project, which will bail out credit delinquents, struggling self-employed individuals, small business owners and farmers in debt.
The WSBI, founded in 1994 in Belgium from the now-dissolved International Savings Bank Institute, is a nonprofit association composed of retail and savings banks around the world. WSBI acts as a resource for its members in their development stage and encourages cooperation and sharing of best practices among its members. WSBI reported in 2006 that it represents 2353 financial intermediaries, and its member savings banks have total assets that amount to more than EUR 8.1 trillion (USD 9.6 trillion).
Founded in 1973, KFSB was established as the National Association of Credit Unions to help its members develop into sound financial institutions. KFSB provides its members with financial and information technology support, conducts research on the improvement of savings banks and helps operate the reserves of savings banks, amongst various other financial services. There are currently over 100 members in KFSB’s network, with combined total assets of USD 61 billion.
Additional Resources:
Korea.net: “Lee Unveils Revival Program for the Underprivileged”
Korea Development Bank: “Savings Banks Focus on Underprivileged”
Korea Federation of Savings Banks: Home, Missions, History
The Korea Times: “Microfinance Key to Sustainable Development” by Kim Jae-kyoung
The Korea Times: “Global Savings Bankers Call for Inclusive Financial System”
MicroCapital.org News Wire: Korea: Korea Federation of Savings Banks Head Endorses Microfinance Ahead of World Savings Banks Institute Meeting
MicroCapital.org News Wire: World Savings Bank Institute Chief Advices Korea to Boot Microfinance
World Savings Bank Institute (WSBI): Home, History, Introducing WSBI, Key Statistics
World Savings Bank Institute (WSBI) Press Release: “WSBI Calls for Enhanced Business Cooperation and Supporst Korean Savings Banks In Their Efforts to Develop Microfinance”
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