Trends
Regarding regulation and supervision
- In countries such as India, Sri Lanka and above all Bangladesh, legislators do not appear to be convinced of the importance of including intermediation with microenterprises within the supervised financial system and of achieving a suitable regulatory framework for its development, as evidenced by the draft legislation that is pending submission to parliament, whereby no progress is expected to be made in this matter. The same thing will happen with financial cooperatives.
Regarding products and services
- The various initiatives taking place in the region, such as the offer of pension products in India, seem to suggest that the offer will become more sophisticated and will expand in the near future.
- The demand for Islamic financial products is growing significantly and the supply of products of this nature should become a driving force for competition in countries such as Pakistan, Afghanistan and Indonesia, as well as in the Middle East.
- Along these lines, too, micro-leasing may experience major development, as it is accepted within Islamic banking practices.
