group. the rbf has announced policies whereby the banks and other financial institutions are to increase their involvement in microfinance. policy guidelines have been issued to them in this regard. an inclusive financial sector the idea for this workshop was mooted in a meeting with commercial banks during the microfinance workshop organised by the microfinance pacifika in july this year. one of the critical outcomes that i wish to see arising from this workshop is the strategy on the integration of commercial banks in fiji in providing microfinance services from january next year. the financial system is a locomotive for growth and banks are the main players in this system. their importance comes with responsibilities as well. no doubt, banks have contributed to the development of the country over the years. however, i would like to see them play a more influential and active role in addressing the unbanked population through financial inclusion initiatives. there is a moral responsibility as well for the commercial banks to develop financial services to suit the development needs of a country. banking licences are not issued as a right, but are a privilege. therefore, the commercial banks ’ policies need to be aligned to the development needs of a country in which they operate. of course, we understand that commercial banking is a very specialised area and risks need to be managed carefully so that depositors ’ interests are safeguarded. i therefore strongly believe that the commercial banks operating in fiji can play a more active role in the economic and social development of our country, by providing banking services to suit the needs of our people, especially those considered to be un - commercial or unbankable. this has been successfully demonstrated by commercial banks in many countries in asia, south america and africa, where financial services are normally tailored to the needs of the people and the country. banks in these countries have modified their operations to include microfinance because they realized the opportunities that existed. we believe that commercial banks with their outreach and resources have a unique opportunity, not only to contribute to the development of our rural areas and assist the marginalised in our communities, but also capitalise on this investment and make reasonable returns. nevertheless, i understand that the commercial banks will need to work out their own strategies and ensure appropriate and adequate resources are invested in the provision of this service. there is no doubt that banks would need to undergo certain degree of adjustments to enable them to provide microfinance services. but, it can be done. i am glad that the programme will have some discussions on this

be another meeting where we just come, talk and go away. i will be very interested in the practical action plan that the workshop should produce at the end of the 2 - day meet. i look forward to your usual contribution and commitment in this respect. over the years, we have seen various action plans being generated at meetings held for the development of microfinance and smes. most of these plans have remained plans and not actioned. a good starting point therefore would be to do a stocktake to determine the extent of financial inclusion in the country and then determine areas that need further improvement and who should be responsible for doing this. this should be followed by developing strategies for lifting financial inclusion in fiji to the next level. what role can each of the institutions represented here play to realise the extension of financial services to the remote areas? it is my hope that this workshop will not only crystallise these roles for us, but that we will action them so that we achieve measurable results. what the reserve bank is doing for a number of years the reserve bank of fiji has been advocating the development of microfinance in fiji and also greater participation of the financial sector in areas like financial literacy and access to banking for rural / remote areas of fiji, similar to many other developing economies around the world. this year, as many of you may be well aware, the rbf has taken the challenge of promoting financial inclusion in fiji and ensuring a financial system geared towards supporting this critical area. our intention is to see the poor or those considered unbankable being provided access to savings and credit facilities that will ultimately help in reducing poverty. accordingly, the aim of the workshop is to come up with clear and actionable strategies for promoting financial inclusion. the microfinance sector plays a very important role in economic development. this has been proven in both the developing and developed countries of the world. we have seen it necessary to pick up the momentum in this particular area of economic development. for this reason, the rbf has become more involved rather than just playing a promotional role. to express our commitment, we established a new department at the bank called the financial systems development and compliance group. amongst other responsibilities, the group will drive the development of microfinance and other financial inclusion initiatives to reach the poor and vulnerable in society. this workshop is the materialisation of planning by this new department which has only been in existence for over 7 months. the outcomes of this meeting will also be monitored by this