Solomon Islands Regulator Looks to Close Financial Inclusion Gaps

Honiara, Solomon Islands - The Central Bank of Solomon Islands (CBSI) has identified a need to address financial inclusion gaps, particularly among women in the country.

Financial Inclusion Challenges Faced by Women

According to a recent report, 88% of women in Solomon Islands do not take out loans due to concerns over repayment and lack of desire or need. The report highlights the challenges faced by women in accessing financial services, including:

76% of borrowing is for daily living expenses
Many women turn to friends and family or moneylenders due to limited access to formal credit
Moneylenders often charge exorbitant interest rates, ranging from 50-250%

Regulatory Efforts to Address Financial Inclusion Gaps

The CBSI is working towards addressing these financial inclusion gaps by:

Promoting financial literacy and increasing access to formal financial services
Launching a regulatory sandbox initiative aimed at encouraging innovation in the country’s financial sector
Improving the country’s financial infrastructure, including enhancing the efficiency and effectiveness of remittance systems

Commitment to Financial Inclusion

" Increasing financial inclusion among women is crucial for economic growth and development," said the Governor of the CBSI. “We are committed to creating an enabling environment that promotes access to financial services, particularly for women.”

Recommendations from the Report

The report suggests that improving financial literacy and awareness among women can help increase their participation in the financial system. It also highlights the importance of:

Promoting digital payments
Increasing access to formal insurance products

Future Plans

The regulator is set to continue its efforts in addressing the financial inclusion gaps faced by women in Solomon Islands, with a focus on promoting financial literacy, increasing access to formal financial services, and encouraging innovation in the financial sector.