Moreover, CDFIs complement their lending products with training and technical assistance for their customers, either directly or through partnerships with nonprofit organizations. This combination enhances a borrower’s capacity and mitigates the risks of default. Successful borrowers often graduate to conventional financing as their needs grow, freeing up resources to help new businesses.
Our supervision of the financial system in Papua New Guinea, covering the banks, other licensed financial institutions, saving and loans societies, superannuation funds, and life insurance companies are to ensure that these institutions comply with the legislative requirements, use world’s best practices and have operational work ethics.