Samoan Finance Sector Faces Challenges, but Progress Made
Despite making progress in promoting financial inclusion and increasing access to financial services, the finance sector in Samoa still faces several challenges that hinder its growth.
Challenges Facing the Samoan Finance Sector
According to a recent report by the Asian Development Bank (ADB), high transaction costs, cultural and social barriers, and a lack of clarity on the role of financial institutions continue to pose significant challenges. These obstacles have resulted in:
- 47% of women in Samoa remaining excluded from the formal finance sector
- Weakened need for financial institutions due to cultural and social barriers
- Limited access to digital financial services
Progress Made by the Samoan Government
Despite these challenges, the Samoan government has made progress in implementing recommendations made by the International Monetary Fund (IMF) in 2015. The government has outlined six objectives to achieve a more inclusive financial system, including:
- Improving access to financial services
- Empowering underserved segments such as women and youth
- Promoting digital financial services
ADB Support
The ADB has been working with the Development Bank of Samoa to help sustainably improve and extend its lending, particularly in the agriculture sector. The bank has also been helping the government strengthen its regulatory and supervisory framework, develop a framework for governance and performance of public financial institutions, and establish a credit bureau.
About the Asian Development Bank
Established in 1966, the ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. With 68 members, including 49 from the region, the bank uses its instruments such as policy dialogue, loans, equity investments, guarantees, grants, and technical assistance to help its developing member countries.
Contact Information
Asian Development Bank Pacific Liaison and Coordination Office Level 20, 45 Clarence St, Sydney, 2000, Australia +61 2 8270 9429 www.adb.org/publications/pacific-finance-sector-samoa