The A2F Program works with the financial sector to strengthen financial institutions, deepen financial intermediation and increase access to finance. Research shows that the development of the financial sector reduces income inequality by disproportionately boosting incomes of the poor. In Vietnam and Cambodia, the A2F Program supports the bank training institutes that IFC-MPDF helped establish. Most recently, the program has been advising the State Bank of Vietnam on how to develop a private credit bureau and the Ministry of Justice on improving the legal and institutional framework for financing moveable assets. Both of these will reduce reliance on land and buildings as collateral. To level the finance sector playing field, IFC-MPDF is providing technical assistance to the Bank of Lao PDR in drafting a new Financial Institutions Law. In Cambodia, the Facility helps banks and microfinance institutions to improve their operations and attract longer-term financing from international finance institutions. Assistance from IFC-MPDF and other donors has helped Cambodia’s commercial microfinance sector to become exemplary, and the A2F Program continues its support through the new Cambodia Microfinance Association.
