Financial Systems Development

Economic growth depends heavily on an efficient financial sector. The creation of effective institutions that provide services on a sustainable basis to micro, small and medium enterprises in urban and rural areas stands at the centre of GFA's advisory operations.

Drawing on the best standardized practices, the GFA Consulting Group aims to increase the provision of financial services to low-income people and simultaneously develop financially self-sustaining institutions. In order to guarantee a lasting effect and limit long-term dependency on international experts, GFA attaches great importance to the creation of internal capacities.

The creation of a favourable legal and regulatory environment is a precondition for providing sustainable financial services. Stifling practices such as direct market intervention, interest rate ceilings, compulsory directed lending and excess-ive collateral requirements have to be abolished.

Providing access to financial services for micro, small and medium-sized enterprises requires commercial banks and other financial intermediaries to operate differently than they did in the past. GFA tackles these issues by developing and implementing tailor-made solutions for financial institutions involved in funding micro, small and medium-sized enterprises and rural sector and by introducing credit bureaus, credit guarantee funds, venture capital funds or leasing as instruments to overcome the inherent weaknesses of certain target groups.
 
To improve the stability of the financial system as a whole, efficient and independent financial institutions are absolutely necessary. GFA pro-motes sound banking practices and operations management, including technical assistance in financial institution reform, bank restructuring, strategy and business planning, organizational development, credit and risk management, credit policy and procedures, product development, internal control, implementation and the development of management information systems.
 
In financial system development, as elsewhere, human resources development at all levels is crucial for building institutions and capacity.

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