Bank Negara, the Malaysian government’s central bank, has announced it will offer assistance in developing microcredit schemes for African governments that seek outside advisory services. The Malaysian financial institution extended the offer as part of its support for Africa’s Financial Inclusion Advisers program (FIA), a poverty reduction initiative that consists of African countries sharing information on microfinance programs and strategies.
The legitimacy behind the central bank’s unseeming offer to assist foreign governments stems from two factors. First, Bank Negara is one of the founding organizations and administrators of FIA; its offer to assist member governments displays its continued support of the program. Second, Bank Negara has extensive experience implementing microfinance policies, having spearheaded several programs in Malaysia. In addition, some FIA member countries are impressed with Bank Negara’s domestic microcredit schemes, and seek to model their own programs after those implemented by the bank.
The offer was made by Malaysia’s Deputy Prime Minister Datuk Seri Najib Razak, during a speech at the Global Southern Africa International Dialogue (GSAID). Najak elaborated on Bank Negara’s offer, saying that when Bank Negara assists African governments in microfinance strategies “each scheme will be planned according to the respective country’s needs and will be a long-term program”.
Bank Negara is Malaysia’s central bank. Since its inception in 1959, the bank has aimed to promote monetary and financial system stability, and foster a progressive financial sector that achieves sustained economic growth. At December 2007, the bank held total assets of MYR 424.9 billion (USD 130 billion), a debt-equity ratio of 1,328 percent and return on assets of 1.57 percent, as calculated from its financial statements.
By Ryan Benson, Research Assistant
Additional Resources:
Bank Negara Malaysia: Home
The New Straits Times Online: Bank Negara to help African countries come up with microcredit schemes
Langkawi International Dialogue: BNM Proposes FIA to Eradicate Poverty Among African Countries
Microfinance Gateway: Pleading for Sustainable Microfinance on Both Sides of the Globe
Bank Negara Malaysia: 2007 Financial Statements
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