Banking Institute launches higher diploma in microfinance
Banking Institute launches higher diploma in microfinance
The Banking Institute in Vientiane will run a higher diploma in microfinance in response to the expansion of the finance sector, including microfinance institutes and leasing companies.
The diploma was officially launched at the institute yesterday in a ceremony presided over by the Governor of the Bank of the Lao PDR (BOL), Dr Somphao Phaysith.
In the past few years the finance sector has grown considerably, especially as microfinance institutes have mushroomed. In addition, more leasing companies and pawn shops have sprung up but lack knowledgeable staff.
The new diploma will also help to sustain and strengthen financial institutions in the future, said Dr Somphao. He noted that small and medium d enterprises (SMEs) are the main driving force in the country's economic development, but these businesses face difficulties in accessing bank loans and financing.
While the banking system is expanding very rapidly, activities focus mainly on the large towns and do not extend to remote areas, Dr Somphao said.
He said many financial institutions are now operating across the country and are running their business in line with their objectives.
The BOL has issued licences to some microfinance institutes, but no financial institution has provided a course on the topic until now. This was needed to equip finance staff with the necessary skills in this sector, to better serve society.
The presence of specialist staff in the microfinance sector is limited and some lack the professional knowledge to carry out this kind of work. This had meant the operations of the microfinance sector were often ineffective, Dr Somphao said.
He said some SME operators and farmers in rural areas needed access to funding sources for development purposes, but the banking system and financial institutions were unable to respond satisfactorily.
This academic year, about 100 people are taking the microfinance course, which is seen as a promising beginning.
Dr Somphao called on teachers, students and officials to focus more closely on their assigned tasks and areas of responsibility to ensure greater success in the future.
vientiane times
