Financial Systems

A functioning banking and finance sector is a precondition for stable economic growth – and as such for efficient poverty reduction. Without these financial systems a country cannot offer its citizens financial services such as business loans. Such financial systems can only work efficiently however when state and private banks and other financial institutions, such as tax and customs authorities, responsibly manage and disperse the funds entrusted to them. Responsibly here includes taking social and ecological need into consideration and not allowing economic factors alone to influence investment decisions. This policy is referred to as social responsible investment (SRI). SRI is being applied by increasing numbers of customers and share holders, and demand is on the rise from the public and politicians, from non-governmental organisations (NGSs) and rating agencies.

As globalisation increases in the financial sector, the importance of national and international financial supervisory authorities and the respective regulations is also on the rise. This is why Inwent offers experts and executives from central banks and national fiscal supervisory authorities advanced training seminars and dialogue forums in which to discuss issues affecting fiscal and financial policies. Together with the National Institute of Bank Management (NIBM), an institution of the Indian Central Bank, Inwent offers a workshop that deals with contemporary questions about monetary policy and financial stability. Programme participants come from India and some of its neighbouring countries.

A dialogue series undertaken in cooperation with the Indian Council for Research on International Economic Relations (ICRIER) addresses the question of "financial inclusion". The series been held over a number of years and deals with such issues as: How can people get access to financial services denied them thus far? And how can these people participate in economic progress? In addition to adjusting to globalisation, the reforms to the financial sector planned for South Asia over the next few years present a second central challenge. Inwent is backing reform via dialogue on regional integration of the financial markets.

D+C online: Credibility is the key 

Information from the Federal Ministry for Economic Cooperation and Development (BMZ) on the topic