Best Practice Regulatory Principles Supporting MSME Access to Finance



“Best Practice Regulatory Principles Supporting MSME Access to Finance”
Manila, Philippines, June 27-28, 2011 

Measures to increase the flow of funds to MSMEs is a major development challenge identified by G20, APEC and other fora in promoting financial inclusion in the Asia Pacific region. This symposium seeks to address this challenge by promoting a regulatory environment in the APEC region’s economies conducive to supporting increased lending by development banks, the commercial banking system and through capital markets. The symposium will review existing regulatory impediments that impact on finance availability and consider the concept of proportional regulatory and supervisory frameworks conducive to increasing financial inclusion and propose best practice regulatory principles. The output of the work should contribute to broader and deeper financial inclusion, employment and investment in the region’s economies.

This symposium will bring together financial system policy makers and regulatory officials from the region, specialists from international and regional organisations and standard setting bodies, senior representatives of development, savings and commercial banks, the securities sector and nonGbank financial intermediaries.

    The objectives of the symposium are:

1. To evaluate regulatory and policy impediments that impact on the flows of finance to micro, medium and small enterprises (MSMEs) and;
2. To discuss measures and best practice regulatory principles that would enhance access to finance;
3. To build capacities in regional economies to increase the flow of funds to MSMEs by promoting a regulatory environment in the region’s economies to enhance banking, equity and debt capital markets.

The proposed outcomes of the symposium are:

***concrete best practice proposals for regulatory and supervisory approaches based on participant and expert experiences, international standards and identified challenges that would give banks and financial institutions as well as other capital market players a higher
level of comfort in financing MSMEs whilst also addressing the challenges facing MSMEs in accessing finance;

***linkages and networking among the participants to expand synergies and activities towards the promotion of a regulatory environment conducive to increased access to finance by MSMEs

*** replicability of the activity results to other economies in APEC and enhanced capacity amongst policy makers and those responsible for the supervision and regulation of MSMEfinancial markets.

The symposium is the first part of a two part activity funded by AusAID under its Public Sector Linkages Program. The output would be proposals that will be submitted for consideration by APEC Finance Ministers and other fora as an action plan to further best practice regulatory approaches. The proposals would also be used as the basis for a subsequent 5 day capacity building training program for regional policy makers and regulators to be held in Melbourne, Australia later in 2011.