everyone is talking about financial inclusion at the international level. it is a major agenda of development right across the globe with financial illiteracy as a serious hindrance to positive development. as far as the bank is concerned, we have another reason to pursue financial inclusion. this is to address and improve the transmission process of our monetary policy to the real economy. this relates to the process where any change we make to monetary policy through a signalling interest rate or other means, its effects should translate down to the real economy, through business houses, consumers, institutions etc. one of the major reasons bis central bankers ’ speeches for the transmission not working is because of the lack of financial services, due to fewer financial intermediaries and products. it is important for png as a developing nation to have this transmission mechanism working right down to the rural communities to eradicate financial exclusion. png is a member of apec and financial inclusion & financial literacy is one of apec ’ s key priorities, as demonstrated by the launch of the apec financial inclusion initiative in 2010. at the 2012 apec finance ministerial meeting, finance ministers of the apec economies recognized financial literacy to be an essential skill for everyone in the 21st century and an important component of any economy ’ s efforts that will effectively support economic and financial stability, inclusive development to improve individual and families wellbeing. the bank of png is in the forefront of promoting the financial inclusion agenda and is committed to several international initiatives such as the maya declaration and the money pacific advisory group goals. the money pacific goals emphasises the importance of financial education where all central banks in the pacific, including png signed up to ensure all children receive financial education through the core curriculum by 2020. the bank also made a commitment under the maya declaration in malaysia in 2013 to achieve several goals by 2015, one of which is to increase financial services access to one ( 1 ) million more of the currently unbanked population in png, of which 50 % of them will be women. i am pleased to announce that png is reaching around ½ million clients as i speak. at this juncture, i would like to reiterate governor bakani ’ s comments of wmbl spearheading the goal of reaching the 500, 000 unbanked women in png before end 2015. we only have 16 months to be able to achieve that target and we are confident that wmbl will provide further initiatives and services to achieve this goal. 3.

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