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ViewpointJuly 1 2016

Using microfinance to lift China's poor to prosperity: an IFC viewpoint

China’s microfinance sector is still developing but has strong potential to reduce poverty and support local SMEs. What are the challenges and opportunities for microfinance institutions in the country? The International Finance Corporation’s country manager for China, South Korea and Mongolia, Simon Andrews, explains.
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Globally, an estimated 2 billion adults do not have access to formal financial services. This limits their access to services and economic opportunity and makes it difficult for them to invest in education, manage risk and weather financial shocks. Participation in the financial system helps people start and expand businesses and is critical in the fight against poverty. 

However, World Bank research indicates the number of unbanked people in Asia-Pacific is shrinking. In 2011, just over half of the population of China managed their finances through a bank account. In 2014, this number grew to 69%. Today, account ownership is more than 79%.

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