0 financial inclusion and its relevance for png ladies and gentlemen, as we know, png is characterized by rugged terrains, scattered islands and lacks basic infrastructures making government services including financial services unreachable for most parts of the country. improving access to financial services remains one of the major developmental challenges in the country and a collaborative effort is needed to extend financial services to the unbanked majority. it is estimated that approximately 85 percent of the adult population is excluded from the formal financial sector and live a subsistence lifestyle well below global poverty line. hence, financial inclusion initiatives are vital to enable the unbanked population to participate meaningfully in the monetized economy. we are confident that our efforts through financial inclusion will have reduced this unbanked ratio of population below 85 percent. 4. 0 challenges & achievements for the microfinance industry a major challenge for the microfinance industry and particularly the first four ( 4 ) licensed microfinance institutions is to ensure the institution is sustainable in short and long term whilst expanding branch network ( outreach ) into rural areas to reach the unbanked population. meanwhile microfinance institutions are succumbed to the pitfalls of reliance on subsidies and other market distortions which should be avoided and self - reliance should be encouraged as a way forward for the growing industry. on a positive note, let me highlight some achievements of the micro finance industry in png in the last few years since its inception which includes : • the industry is reaching around 500, 000 clients as i speak. this is a remarkable achievement, • the industry continues to develop a range of client centered products and services suitable for the grassroots, bis central bankers ’ speeches • the use of technology to extend financial services to the very remotest parts of the country through mobile phone banking, • the introduction of micro insurance as part of its service delivery, • the establishment of industry standards in line with the international best practices. this was non - existence before. in your endeavour to grow this entity, there is a need for a result based professional approach for the future. be forward looking, women ’ s micro bank is not here to only provide financial services but also ensure that the services make a positive impact or change in the lives of its clients. this includes both the change of life style and improving of living standards which is what is defined as the double bottom - line in microfinance, sustainability and impact 5. 0 financial literacy and education i understand the parent entity, women in business has

high agricultural and mineral export receipts, combined with inflows related to the construction phase of the png lng project. the kina appreciated against the australian dollar by 8. 3 percent to a $ 0. 4276 over the same period. the appreciation was attributed to cross currency movements, as the australian dollar weakened against the us dollar. as a result, the trade weighted index ( twi ) appreciated by 12. 6 percent during the same period. the real effective exchange rate ( reer ) also appreciated by 7. 6 percent during the december quarter of 2011 ( see chart 3 ). the increase in international reserves led to the growth in money supply and liquidity. annual growth in broad money supply ( m3 * ) and monetary base in 2011 were 17. 3 percent and 61. 7 percent, respectively. the increase in broad money supply resulted mainly from increases in nfa of the depository corporations, while the substantial growth in monetary base mainly reflected increase in commercial bank deposits at the central bank. lending to the private sector continued to grow moderately as a result of firms utilising own funds while those associated with the png lng project received funding from the project. the bank issued net new central bank bills ( cbbs ) totaling k1, 102. 0 million, to diffuse some of the bis central bankers ’ speeches excess liquidity. however, domestic interest rates continued to fall, given the persistent high level of liquidity, with cbb rates at around 2. 0 percent and treasury bill rates at around 3. 0 percent. total liquidity of the banking system further increased by 37. 2 percent to k8, 888. 4 million in 2011, due to high government expenditure and foreign exchange inflows. net claims on the government declined by k846. 7 million in 2011, mainly due to increased deposits in the trust accounts. in the first quarter of 2012, the bank issued additional net cbbs of k92. 4 million. excess liquidity continued to remain high, therefore the bank increased the crr by an additional 1. 0 percent. in 2012, broad money supply is expected to increase by 14. 8 percent, driven mainly by increase in nfa of the banking system. monetary base and private sector credit are projected to grow by 33. 2 percent and 7. 0 percent, respectively. the bank considers the projected growth in monetary aggregates appropriate to support economic growth, but is also mindful of their inflationary impact, for