Corporate Governance and Access to Finance - ESBG

PPSB is an institution concerned with good corporate governancepractices, in line with general banking sector standards sponsored by theregulatory and supervisory authorities. These corporate governancestandards are aligned with typical banking objectives, but not tailored inparticular at access to finance objectives.The mission of PPSB includes general references to access to finance.These general guidelines have only partly been translated, however, intospecific financial inclusion policies or objectives. Thus, it seems to becertain disconnect between the Corporate Governance Code and thefinancial inclusion objectives as stated in the Mission of the institution.Given its limited number of branches, PPSB needs to develop a strategyto increase its outreach. The postal branch network could be leveragedto expand its distribution network and reach underserved communities.This strategy would require in its turn a solution of the problem ofre-capitalisation. PPSB could also consider benefiting from the policyframework that will allow thrift banks to use the convenience storeoutlets to increase its capillarity.PPSB also promotes activities that indirectly contribute to promotefinancial inclusion. Thus, it has financed part of the Financial LiteracyProject, which aims at increasing savings among small savers through theprovision of teaching guides on Financial Literacy to all public elementaryschools across the country. Improving financial literacy programs anddedicated products to educate the young on financial services help tolower the barriers to entry.136