2014年-世界发展银行全球_Elements_to_Consider_When_Establishing_the_Envisaged_Development_Bank_of_Mozambique___Policy_Note_38页_1mb

Summary of the Policy Note: Elements to Consider When Establishing the Envisaged Development Bank of Mozambique

Core Content

This policy note outlines the considerations and recommendations for establishing the Mozambique Development Bank (MDB), based on the country's financial sector progress and the challenges that still exist. It is motivated by the draft National Development Strategy and aims to guide the Government of Mozambique (GoM) in creating a sustainable and effective development bank that addresses key financing gaps.

Main Points

1. Progress in the Financial Sector

• The Mozambican financial sector has seen significant improvements since the late 1990s, driven by reforms such as the privatization of state-owned banks, strengthening of the central bank's independence, and modernization of the regulatory framework.
• The number of financial institutions has increased, and financial stability and depth have improved.
• Bank solvency has risen, with the regulatory capital ratio increasing from 14% in 2002 to 17.9% in 2012.
• Non-performing loans (NPLs) have decreased dramatically, especially after the privatization of state banks.
• Domestic deposits to GDP and private credit to GDP have increased since 2004, although the sector remains concentrated, with the three largest banks holding 85% of total assets in 2011.
• Financial inclusion is still low and uneven, with urban areas having significantly more access than rural ones.

2. Role of a Development Bank

• Development banks can play a crucial role in addressing financing gaps, particularly for small and medium enterprises (SMEs) and the agricultural sector.
• However, international experience shows that development banks are often subject to political interference, which can undermine their sustainability and independence.
• They cannot resolve all financing constraints, which are the result of multiple factors such as a poor business environment, lack of information infrastructure, and limited managerial skills.

3. Key Recommendations for the MDB

• Ownership: Establish the MDB under its own law to include specific requirements for governance, regulation, and financial sustainability. Ensure the government maintains a controlling stake while allowing other shareholders.
• Policy Mandate: Define a clear policy mandate, focusing on the target sector (e.g., SMEs, agriculture) and aligning with national development goals.
• Funding: Adequately capitalize the MDB with a regular funding stream. Prohibit it from taking deposits.
• Lending Model: Operate as a second-tier institution, providing financing through private financial institutions. Allow direct lending to large projects, preferably in syndication with other banks, using credit guarantee schemes.
• Pricing: Ensure that the MDB's pricing is commercial, with interest rates and fees covering costs and risk. Subsidies should be temporary, justified, and disclosed in the state budget and MDB reports.
• Regulation and Supervision: Place the MDB under the supervision of the central bank and require it to comply with prudential standards.
• Corporate Governance: Ensure the board is composed of qualified, non-executive members not directly affiliated with the government. Avoid appointing government officials as board members.
• Transparency and Accountability: Promote transparency by publishing information on MDB operations and governance. Require regular reporting and performance assessments, including submission of annual reports to the National Assembly and parliamentary committees.
• Accountability Mechanisms: Establish a shareholder representative to exercise ownership rights and responsibilities. This representative should be accountable to the government and the parliament.
• Complementarity: Ensure that the MDB complements the private sector, not replaces it, and reports annually on its role in financial inclusion and development.
• Relevance and Review: Review the MDB's policy mandate every five years to ensure it remains relevant and aligned with the country's development needs.

Key Information

• The MDB is intended to provide long-term financing and other financial solutions to SMEs and the agricultural sector.
• It would also manage a national investment fund, a credit guarantee fund, and an interest rate equalization fund.
• The MDB's design must avoid creating moral hazard and should not exceed the government's allocated budget for subsidies.
• The MDB should be financially sustainable, achieving a minimum rate of return.
• The financial sector's structure and performance have improved, but challenges remain in terms of access, especially for SMEs and the agricultural sector.
• Financial inclusion is uneven, with urban areas far outpacing rural ones.

Conclusion

The establishment of the MDB presents an opportunity to address critical financing gaps in Mozambique, particularly for SMEs and the agricultural sector. However, to ensure its success, it must be designed with strong corporate governance, financial sustainability, and regulatory oversight. The MDB should complement the private financial sector and be subject to regular performance evaluations and transparency measures.