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Roundtable Symposium of AFCA and the First Working Meeting of IFCC held in Beijing

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       On July 29th, the Roundtable Symposium of Asian Financial Cooperation Association and the First Working Meeting of the Inclusive Finance Cooperation Committee was held in Beijing. Professor Muhammad Yunus, Nobel Peace Prize Laureate, Director of IFCC of AFCA, Founder of Grameen Bank and the Foundation for Yunus Social Business, and Mr. Sangkee Min, Former Chairman of the Financial Reform Council and Chairman of the Seoul Financial Forum, attended the meeting and delivered speeches. Over 70 representatives of the financial authorities, financial institutions, industrial associations, financial services industries from eight Asian and European countries including China, Japan, South Korea, Britain, Czech and international associations like AIIB have attended the meeting. Ms. Yang Liyu, Executive Secretary General of AFCA hosted the meeting.

Group photo of the guests

       In his speech, Professor Yunus reviewed the history of the Grameen Bank and said that inclusive finance has a clear definition, which includes fair opportunity, affordable cost and effective financial service. “At present, some institutions are engaged in financial business boasting of 20% or even higher annual interest rate under the banner of inclusive finance. That’s not the real inclusive finance.” He said, though price is not the only criteria of “good finance”, for the poor, affordable cost is a key indicator.

Mr. Muhammad Yunus, Director of IFCC, gave a speech.

       Mr. Sangkee Min noted in his speech that the availability of finance is not a purpose itself, the true challenge resides is that the disadvantaged group could enjoy the financial service at an affordable cost. Mr. Min emphasized, “We should put effort on increasing the credit of the disadvantaged and help them to become more trustworthy. Inclusive finance is commercially sustainable and it will enable SMEs, farmers, and urban residents with low income, poverty-stricken people, disabled people and old people to help themselves. He proposed to establish “Asian Inclusive Finance 50 People’s Forum” to deal with the demands and the challenges in different countries with joint effort, and support the sustainable development of inclusive finance in Asia.

Mr. Sangkee Min, Former Chairman of the Financial Reform Council and Chairman of the Seoul Financial Forum, gave a speech

       In the meeting, Executive Deputy Secretary General Yang Liyu presented the Letters of Appointment of IFCC of AFCA to the committee members.

Presentation of Letter of Appointment to Professor Muhammad Yunus, Director of IFCC

Presentation of Letter of Appointment to Mr. Zhang Weizhong, Executive Deputy Director of IFCC and General Manager of Inclusive Finance Business Department, China Construction Bank

Presentation of Letter of Appointment to Mr. Xing Wei, Deputy Director of IFCC and President of Insurance Association of China 

Presentation of Letter of Appointment to Mr. Mel Carvill, Deputy Director of IFCC and Board Member of Home Credit Group

Picture 8 Presentation of Letter of Appointment to Mr. Sun Dawei, Representative of Chinese Banking Association of Hong Kong and General Manager of Personal Banking and Product Management of Bank of China (Hong Kong)

Presentation of Letter of Appointment to Representative of Korea Federation of Banks

Presentation of Letter of Appointment to Mr. Yun Mingqing, Chief Advisor of IFCC of AFCA

Mr. Du Guangyu, Director of IFCC and Director of the Inclusive Finance Business Department, China Construction Bank hosted the Presenting Ceremony of Letter of Appointment.

       Mr. Li Qingchuan, Adviser of Financial Inclusion Department, China Banking and Insurance Regulatory Commission said, to promote the high-quality development of inclusive finance, we need to consider the actual situation in each country and take a target-directed and problem-directed approach. Meanwhile, we should also strengthen international exchanges in three aspects, i.e., top design, mode innovation and risk prevention and copy and promote the successful modes of inclusive finance used by each country and region.

       Mr. Bumyoal Lee, Director of Financial Center Supporting Bureau, Financial Supervisory Service of South Korea introduced the practice of inclusive finance in South Korea and pointed out that financial industry should keep innovating on methods to help consumers to make wise financial decisions and regain the public’s trust in financial service.

       “The ultimate goal of the SMEs-oriented inclusive finance is to facilitate the competitive SMEs to enjoy financial service and help them prosper.” Mr. Yoshiaki Azuma, Chief Representative of Beijing Representative Office, Bank of Japan emphasized in his speech, compared with the traditional credit rating model, the use of AI cannot reduce the risks faced by SMEs, and simply relying on Fintech to increase loans to SMEs may cause problems such as non-performing loans and “zombie companies”.

       In the First Working Meeting of the Inclusive Finance Cooperation Committee (Second Plenary Meeting), the committee members reviewed and approved the The List of New Candidates of IFCC and the Work Plan of IFCC for the Second Half of 2019

       Representatives of IFCC committee members and AFCA members, including Mr. Xing Wei, President of Insurance Association of China, Ms. Gu Tianyi, Deputy Director General of Planning & Administration Department of Poverty Relief Program Finance, China Development Bank, Mr. Mel Carvill, Board Member of Home Credit B.V., Mr. Zhang Xing, Deputy General Manager of Inclusive Finance Division, Agricultural Bank of China Ltd., Mr. Wu Jun, General Manager of Inclusive Finance Department, China CITIC Bank, Mr. Gao Zhan, Executive Director of Foundation for Yunus Social Business China and President of Grameen China, Mr. Zhang Dawei, Chairman of China OTCTOP Co., Ltd., Mr. Sun Lei, Designated President and Chief Compliance Officer of MS Consumer Finance Co., Ltd., Mr. Liu Xiaoshu, Chief Economist of Bank of Qingdao Co., Ltd., Ms. Anita Juhasz-Nagy Manager of Management and HR & Training, Hungarian Banking Association, discussed on the topic of Development of Inclusive Finance: Current Status, Existing Problems and Policy Advice. Mr. Yun Mingqing, Chief Advisor of IFCC of AFCA, Deputy Director General of China Institute for Innovation and Development Strategy delivered a report on Inclusive Finance Promotes the Revitalization of Ecological Apiculture: Exploration and Practice.

       Mr. Zhang Weizhong, Executive Deputy Director Member of IFCC and General Manager of Inclusive Finance Business Department, China Construction Bank summarized five issues that worth reflection and further exploration. First, the orientation of inclusive finance is important and it should serve the interest of the special groups who need financial service most, and not deviate from this end and for the sake of profits. Second, reasonable positioning and pricing are required on the supply side of inclusive finance, while client education should be strengthened on the demand side to ensure the balance of supply and demand. Third, Fintech plays a key role in reducing cost and increasing efficiency. Fourth, a strong and reliable crediting system for inclusive finance should be built. Fifth, the development of inclusive finance should take a sustainable approach and focus on the effective construction of service ecosystem.

       As guests of the meeting expressed, it has become an international consensus to vigorously develop inclusive finance, which is conducive to the sustainable and balanced development of the financial industry and will enhance the social fairness and social harmony. They suggested that all parties concerned should continuously improve the coverage, availability and client satisfaction of financial services.