##credit with other services. there are several single product microfinance ngos such as kashif foundation in lahore. two commercial banks are also providing lines of credit for microfinance. leasing companies have also begun to take some interest and two of them are already engaged in the sector. in addition there are several self standing donor supported projects delivering microfinance. we don ’ t know as to which particular delivery mechanism will be effective and that is why there is a need to experiment with plurality and diversity. fifth, an innovative feature of the microfinance sector development is that as the poor segments of the population are much more prone and vulnerable to shocks they need to be protected. thus a bad harvest or drought or strikes in the cities or violence completely wipe out the earning capacity of the poor and disable them from repaying their credit obligations on time. as labor is their only asset and the returns on labor are disrupted for no fault of theirs a risk mitigation mechanism had to be created to insulate the poor borrowers from these unforeseen hazards. a risk mitigation and deposit protection fund has been created to provide protection to the mfis borrowers and depositors. they can seek recourse to this fund under adverse circumstances beyond their control. sixth, the regulatory regime adopted by the sbp for microfinance sector is that of a facilitator, guide and problem solver. we do not prescribe for mfis the same onerous regulations which prevail for other financial institutions. we have a light regulatory oversight and are learning together with the practitioners and adopting ourselves to the changing circumstances. we have a consultative group drawn from the representatives of stakeholders who guide us in the development of our regulations and prudential norms. to conclude, the strategy for microfinance development will undergo continuous review and modification to make it responsive to the needs of the poor. the government, state bank, ngos and all other mf practitioners have to work together to make this strategy work and accelerate the speed with which we can reach out to the potential beneficiaries. on the part of the sbp i can assure you our full commitment and support to this strategy. we look forward to working together with you in these endeavors.

ignazio visco : statement - meeting of the development committee statement ( virtual ) by mr ignazio visco, governor of the bank of italy and governor of the constituency of albania, greece, italy, malta, portugal, san marino and timor - leste, at the 102nd meeting of the development committee ( joint ministerial committee of the boards of governors of the bank and the fund on the transfer of real resources to developing countries ), washington dc, 16 october 2020. * * * the world - wide spread of the new coronavirus has led to an extremely serious public health emergency and an economic crisis unparalleled in modern history. in order to contain the pandemic, many countries had to introduce measures that curtailed people ’ s movements and social interactions, and temporarily put a stop to many productive activities. the repercussions for global growth have already been extremely severe. this year we will see a sharp and widespread fall in per capita incomes. the longer term impact of the crisis remains surrounded by a great deal of uncertainty, as it is difficult to say how much and in what way the pandemic will ultimately shape households ’ behavior and consumption patterns, what new needs will emerge and which social habits will be abandoned definitively. while the international business cycle has somewhat improved over the summer – with recovery beginning in many countries – the pandemic has continued to spread. as a result, uncertainty at the global level remains very high all over the world, curtailing consumption and investment. the sharp rise in savings observed in many countries in the last few months, which is in large part caused by precautionary motives, could restrain aggregate demand for a long time, slowing recovery. a prolonged slowdown in capital accumulation may dampen productivity growth, potentially exacerbated by a retreat from global value chain, which would affect longterm perspectives. it is especially important to limit the diffusion of the crisis within the financial sector to avoid additional negative feedback loops. in 2020 the amount of people living in extreme poverty will increase for the first time in 25 years. the number of food - insecure people could double. countries affected by fragility, conflict and violence, especially in sub - saharan africa, may be most strongly hit. the social and economic consequences of this crisis call for continuing action at all levels. it must be recognized that the impact of the pandemic has been uneven among workers, with job losses and unemployment concentrated among low - skilled and