Financial Inclusion In Pakistan: Observations And Lessons From The I-SIP Methodology.pdf

observations and lessons for the I-SIP methodology from Pakistan.

Introduction
Background
Pakistan financial inclusion policy interventions
Financial inclusion in Pakistan and SBP’s role
The four policy interventions
The regulatory framework for microfinance banks
The Microfinance Credit Guarantee Facility
Branchless Banking Regulations
The Microfinance Credit Information Bureau

Observations from Pakistan
Defining objectives and measuring effects
Linkage management
Incremental linkage optimization

Lessons for the I-SIP methodology
Linkage hypotheses, targets, and indicators as tools in policy making
Refining the I-SIP Propositions

Annex 1: List of interviews
Annex 2: Linkage hypotheses for introducing a new microfinance law
Annex 3: I-SIP Guidance Statements from South Africa

Table 1: Observed effects in the MFB case
Table 2: Observed effects in the MCGF case
Table 3: Observed effects in the BB case
Table 4: Possible effects of MF-CIB case
Table 5: Summary of linkages in policy interventions

Figure 1: Possible pair-wise linkage zones
Figure 2: Optimization path
Figure 3: Bank lending guaranteed under the MCGF
Figure 4: Growth in number of BB accounts
Figure 5: Growth in number of agents

Box 1: Examples of Public Statements on I-SIP Objectives
Box 2: Incremental changes to banking regulation versus permitting nonbank e-money issuance
Box 3: Revised I-SIP Propositions

ADB
Asian Development Bank
AML/CFT
Anti-money laundering and countering the financing of terrorism
BB
Branchless banking
CNIC
Computerized National Identity Card
DFID
Department for International Development
eCIB
Electronic Credit Information Bureau
FATF
Financial Action Task Force
GBP
British Pound
GPFI
Global Partnership for Financial Inclusion
I-SIP
Inclusion, stability, integrity, protection
MCGF
Microfinance Credit Guarantee Facility
MFB
Microfinance bank
MF-CIB
Microfinance Credit Information Bureau
MFI
Microfinance institution (unregulated credit-only MFIs)
MFP
Microfinance provider (MFBs and MFIs)
MNO
Mobile network operator
MoIT
Ministry of Information Technology
NADRA
National Database & Registration Authority
NGO
Nongovernment organization
OTC
Over-the-counter
PMN
Pakistan Microfinance Network
PKR
Pakistani Rupee (local currency unit)
PTA
Pakistan Telecommunication Authority
SBP
State Bank of Pakistan
SECP
Securities and Exchange Commission of Pakistan
SIP
Stability, integrity, protection
STR
Suspicious transaction report
UBL
United Bank Ltd
USSD
Unstructured supplementary service data (mobile phone protocol)