. this will further ensure that access to institutional microcredit also enables the borrowers to explore opportunities for generating income in a sustainable manner, besides meeting their immediate needs for money. concluding remarks mfin has been instrumental in multiple initiatives to strengthen the sector during the decade and to develop the microfinance ecosystem. the current mfin microfinance review report provides data - supported insights, and it has been enriched with mfin's experience. the report discusses in detail the organic evolution of the microfinance sector and the supporting ecosystem leading up to the new regulations. my compliments to mfin and the whole team for bringing out this report. it has been our constant endeavor to support microfinance sector by addressing regulatory gaps and arbitrage arising from differential regulations across the spectrum of entities. towards this objective, we have introduced structural changes by revamping the regulatory framework for microfinance loans in march 2022. we would like to see through its successful implementation on ground before taking further steps. let me again say, albeit at the cost of repetition, that customer protection lies at the core of microfinance regulation, and it has been our guiding light while revamping the regulatory regime for the microfinance sector. we have attempted to move from a rulebased approach to a principle - based approach thus creating enabling environment for more financial institutions to serve the excluded, while protecting their interests through competition and transparency. i am hopeful that these regulatory reforms will provide the requisite impetus for the long but immensely fulfilling journey towards an inclusive and responsible microfinance sector. thank you. micro finance : empowering a billion dreams - available at https : / / www. rbi. org. in / scripts / bs _ speechesview. aspx? id = 1137 2 as on june 30, 2022. all data points in this speech, unless specifically mentioned, are from micrometer : a quarterly publication of mfin. 3 one out of two entities which was granted approval for starting a universal bank in 2014 was an nbfc - mfi, while eight out of ten entities granted approval for starting small finance banks in 2016 were nbfc - mfis. 7 / 7 bis - central bankers'speeches

ag - 2018 - 09 - 19. html 8 / 16 20 / 09 / 2018 money – born of credit? | speeches | rba graph 5 as banks grew through the next four decades or so, there was a marked change in the composition of their balance sheets. these changes reflected choices by both banks and the private sector and were strongly influenced by the deregulation of the financial system. in particular, constraints on banks'business activities were progressively removed in the 1970s and early 1980s ( for example, the interest rates they could charge and pay, their product offerings, lending volumes and their asset holdings ). this was associated with significant changes in banks'abilities to attract and use different funding sources to support balance sheet growth. [ 9 ] by the early 1990s, australians'demand for credit from banks became larger than the sum of all of their deposits. following a period of slower growth around the early 1990s recession, credit growth picked up again and continued to grow much more quickly than money. to enable this, a greater proportion of bank funding during this period was drawn from sources other than deposits. much of it owed to an increase in the issuance of debt securities, which was supported, in part, by a strong appetite from non - residents for australian bank debt. these trends continued until the global financial crisis. following the crisis, credit growth fell for a while ( reflecting a decline in both the supply of and demand for credit ). at the same time, the stock of ( broad ) money increased noticeably, rising by around $ 1. 1 trillion dollars, from around 80 per cent of gdp in 2007 to around 115 per cent in 2018. this strong growth reflected a sharp increase in the share of funding sourced from deposits at the expense of short - term debt securities, consistent with https : / / www. rba. gov. au / speeches / 2018 / sp - ag - 2018 - 09 - 19. html 9 / 16 20 / 09 / 2018 money – born of credit? | speeches | rba banks seeking more stable funding. meanwhile, households and businesses increased the share of their assets held in the form of deposits. while loans have grown dramatically in nominal terms, to around $ 2. 6 trillion today, the share of loans on banks'balance sheets is the same as it was in 1980 ( graph 6 ). [ 10 ] in contrast, and notwithstanding the increase in deposits since the global financial crisis, the share of deposits has declined over the past 40 years from above 80