Corporate Governance and Access to Finance - ESBG

This list of topics is intended to provide a general view of the mainmechanisms that connect Corporate Governance and Access to Finance.In doing so, the experience of the five case studies – and also other WSBImembers – is used as an example when relevant.2.1. Access to Finance missionFor most WSBI members, their objectives are well summarized in the“double bottom line”: playing a role in the social and economicdevelopment of the local community, including through the provision ofAccess to Finance to unbanked/vulnerable segments of the population,and ensuring the long term sustainability of the institution through anadequate profitability. The link between Corporate Governance andAccess to Finance should seek ensuring management accountability asregards the financial inclusion objective. A pre-requisite is the clarity inthe definition of the mission of the institution.A necessary element of any strong institution that promotes Access toFinance is a clear and sustainable mandate, which should be revisedperiodically to ensure that the institution remains relevant and adaptsto the changing market circumstances. Table 2 examines the missionstatements of the five WSBI members under study.Some examples of this clarity in the mandate can be found in the PeruvianCMACs mission statement: “to benefit segments of the populationlacking financial support of traditional banking” (CMAC Arequipa) or “toprovide financial services with efficiency, timeliness and competitiveness,both to small and micro enterprises (SMEs) and to families who normally donot have access to the banking system” (CMAC Piura). Another exampleis the Postal Bank of Kenya, whose mission includes “to provide accessibleand sustainable banking and other related financial services”.The explicit reference to Access to Finance in the mission statement willserve as a basis to support financial inclusion efforts of the savings banks,mainly through the development of proximity banking activities thanks toan extended distribution network, and the offer of financial services andproducts tailored to the specific needs of underserved or unbanked people.24