Strong management and governance are key requisites for inclusion when dealing with financial institutions. The institution must have the financial resources, the know-how, and the institutional processes to manage a higher volume of less predictable transactions. Clear ownership and transparency allow better control from the clients and increase their confidence. The institution should be financially solvent and show a high level of loan recovery. Potential depositors will feel more secure and increase usage of needed financial products & services.
SDC financed a project in Latin America, with the objective to improve the governance of financial institutions in various LatAm countries. This project is called GIF (Gobernanza e Inclusion Financiera) and it’s implemented by BIM Investments.
Here after you'll find a summary on the key elements of governance for financial institutions for the quick reader and PCM-tools for governance and inclusion for the expert practitioner.
The GIF Toolbox for Governance and Financial Inclusion is designed to enable
financial institutions to implement and strengthen processes of Good Governance in their institutions. The Toolbox is based on SPTF universal principles and standards, and intermediary financial institutions governability principles, recommended by the Basel Commission on Banking Supervision. The toolbox is meant for the expert practitioner. GIF Instruments include three main areas: GOVERNANCE MANUAL & INTRODUCTION: What practices and standards should be incorporated? INSTRUMENTS FOR THE DIAGNOSIS & EVALUATION: Which are the main improvement areas for the financial institution? TOOLBOX WITH WORKING AIDS: How to incorporate best practices in the financial institution?
