On 25-27 June 2015 in Minsk, AFI member institution and the National Bank of the Republic of Belarus (NBRB) hosted an important regional forum called “Financial Inclusion: Regulation and Policymaking” to examine access to finance for central banks of Eastern and Central Europe and the Commonwealth of Independent States (CIS).

The forum served as a platform to share knowledge among the participating countries, which in addition to Belarus, included: Armenia, Bangladesh, Georgia, Kazakhstan, Kyrgyzstan, Macedonia, Montenegro, Romania, Poland, Russia, Tajikistan, Tanzania, Turkey and Ukraine. Discussions centered on legal, policy and regulatory environments and the needed reforms toward achieving more inclusive financial systems.

The event also served as part of a bigger project including the finalization of NBRB’s national financial inclusion strategy.

Alfred Hannig, Executive Director at AFI, hosted the forum’s Advancing Financial Inclusion through Peer Learning session, which offered highlights from around the AFI Network. Panelists from Bangladesh Bank (BB), the National Bank of the Republic of Macedonia (NBRB) and the Bank of Tanzania (BOT) presented examples of how engagement in the AFI Network has supported the advancement of financial inclusion policy in their countries.

“Our ability to scale up digital financial services in Tanzania to such an extent has been informed through our engagement in the AFI Network and through peer learning with other AFI member institutions,” stated Kennedy Komba, Advisor to the Governor at BOT.

The forum’s other key sessions covered digital financial services, financial literacy, consumer protection and data for financial inclusion. Significant takeaways included:

• Central banks in the region are increasingly expanding their mandate beyond what is explicitly written into law; greater coordination of efforts is required of stakeholders and policymakers to ensure truly inclusive financial systems; and greater peer learning among policymaking institutions is needed to identify and address common regulatory challenges and opportunities.
• Consumer protection is a necessary precondition for financial inclusion in the region.
• The financial crisis highlighted the importance of solid and accurate financial knowledge among the general public; financial education contributes to a stable financial market; and financial education is also effective in some national contexts in increasing transparency of the central banks.
• Technological innovation is the driver for financial inclusion in the region, but must be monitored closely by regulators to ensure a proper assessment of risks and strong consumer protection.
• The benefits of having comprehensive data outweigh the costs for data collection and analysis in the mid to long term.

Significant interest was expressed from non-member institutions in Central and Eastern Europe to join the AFI Network.  According to Mirela Roman, Director of Communications at the National Bank of Romania (NBR): “For the NBR delegation this was a great opportunity to learn and share experience in the field of financial inclusion with other central banks from Central and Eastern Europe and the Commonwealth of Independent States, while getting up-to-date insights about projects being implemented by our peers in the AFI Network.”

Mr. Hannig also met with Pavel Kallaur, Governor at NBRB, as well as Mr. Dubkov. Each expressed the bank’s strong support for AFI’s transition to independence, and noted its interest in continuing to contribute thought leadership in the AFI Network, particularly in the areas of financial education, financial inclusion data, digital financial services, regulation of the non-bank sector, and peer learning with Standard Setting Bodies (SSBs).

“Our co-operation with AFI in the past five years has helped bring greater financial stability and welfare to the citizens of Belarus,” said Sergei Dubkov, Deputy Chairman at NBRB.

Mr. Hannig added: “I would like to express my gratitude to NBRB for hosting this event, and acknowledge Belarus’ efforts to expand and strengthen financial inclusion. This is yet another reminder that the AFI Network indeed has the power and responsibility to influence poverty reduction through increasing financial inclusion.”

NBRB officially became a member of AFI in 2010. Participation in AFI Network helped the central bank to develop its “State Strategy on Improving Access to Finance for 2014-2019.” NBRB also made a Maya Declaration Commitment in 2013 to address areas of financial literacy and digital financial services, and is currently a member of AFI’s CEMCWG, FIDWG, DFSWG, SMEFWG, and FISPLG.