Catalog

	Table of Contents
p. 55 of 58 BACK | NEXT Purpose and Structure of the Toolkit Part One: Introduction and Overview Part Two: Preconditions and Infrastructure for Financial Sector Development Part Three: Financial Regulation and Supervision Part Four: Regional Financial Integration Part Five: ADB's Intervention in the Financial Sector Bibliography Glossary and List of Abbreviations Acknowledgements

Financial Sector Legal and Regulatory Toolkit

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Part Five: ADB's Intervention in the Financial Sector

As the engine of growth, the private sector plays a direct role in ADB's overarching goal of poverty reduction. It participates in physical and social infrastructure and provides basic services that will benefit the poor, thus freeing resources for the public sector. For it to contribute more effectively to the delivery of such services, an enabling environment must be established and the financial sector developed.

In this regard, ADB's has long supported the development of the financial sector in its developing member countries. Through its projects and partnerships, ADB seeks to address the urgent need to build the capacity of service providers while maintaining the necessary financial standards and discipline.

Some of the interventions that ADB has provided to its developing member countries in this sector (either through loans or technical assistances) have been aimed, among others, to

• strengthen the domestic debt market to attract more domestic and international investment capital (Sri Lanka),
• establish a well functioning secured transaction framework and credit reference facility to improve access to affordable credit (Vanuatu),
• establish a statistics system that is consistent with risk based supervision principles and meets the needs of supervisory authorities for offsite surveillance and onsite inspection risk assessment early warning and information disclosure (PRC),
• improve SME credit guarantee operations and optimize risk and capital allocation through re-guarantee operations (PRC),
• establish financial service authority (Indonesia),
• build capacity for key staff in stock exchanges and define an incentive structure for enhanced competition among the stock exchanges (India),
• draft implementing rules and regulations of anti-money laundering legislation and build capacity for key institutions to establish an effective anti-money laundering regime (Mongolia),
• strengthen the banking sector regulatory framework through a risk assessment and management program for commercial banks (Kyrgyz Republic),
• strengthen the payment and settlement system (Bhutan),
• strengthen the capacity of nonbank financial institutions and the capital market (Viet Nam),
• strengthen the capacity for capital market development and corporate governance (Pakistan),
• strengthening the basic foundations of the corporate and financial sector through improvements in governance, transparency and accountability Nepal Corporate Governance (Nepal),
• provide long-term funding to leasing companies to help them meet strong demand for longer-term leasing products from small and medium-sized enterprises (SMEs) and to help the leasing companies diversify their funding base and target more clients (Viet Nam), and
• assist the government in developing the legal and regulatory framework for the development of a market economy, (PRC).

It is worthwhile to note that under its Medium Term Strategy II (2006-2008)), the financial sector is considered as one of ADB's core operational sectors. This means that there is strong demand for ADB's assistance and that the Bank has a solid record of good performance in this sector. ADB is also committed to build up a critical mass of expertise to act as a leading provider of assistance in financing and expertise.

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