Financial Sector
Strategies

Benefits of Financial Sector Strategies

TSC Global understands the need for financial policy makers and stakeholders to have a comprehensive and balanced view of the financial development needs in their country. Financial sector strategies help them achieve this by enabling them to assess the systemic risk of different policy options and make informed decisions. The quality of the strategies influences the financial sector outcomes, such as the level of financial depth, inclusion, efficiency, and stability. Evidence suggests that financial sector strategies can enhance financial sector deepening, inclusion, and stability, especially when they are of high quality. However, the impact of strategies on the efficiency of banks is not clear. One of the ways that financial sector strategies can improve financial sector outcomes is by strengthening the regulatory framework for finance.

TSC Global's Finance, Insurance, and Risk thematic team has worked with over 42 financial sector regulators worldwide, including Australasia, Pacific Island nations, South East, Central Asia, Far East Asia and South Asia, the African continent, and South America.

Challenge

In Cambodia, our team has developed the financial sector strategy for the Government for over 15 years, starting with our first project with the Royal Government of Cambodia in 2007 and then the five-year reviews in 2012 and 2017. Our first role was only six years from the country's first financial sector blueprint for its nascent financial sector post-Khmer Rouge.

• Awareness, preparedness, and close coordination among all key stakeholders,
• Regular monitoring of achievements and early identification of problems to address problems swiftly and in an appropriate manner,
• Allocation of the resources necessary to implement this strategic plan,
• Ownership of this strategic plan by all relevant authorities,
• Clarity about who is responsible and accountable for implementing the action plans
• Cooperation among international organizations and development partners that provide technical assistance and other forms of support and oversight by the concerned authorities, and
• Building a sound foundation for ongoing capacity development.

Strategy

A financial sector strategy is a plan that outlines the goals, policies and actions for developing and regulating the financial system of a country. A well-designed strategy can transform a country by enhancing its economic growth, stability and inclusion.

Transformation

A financial sector strategy can help mobilize savings, allocate resources efficiently, facilitate trade and investment, manage risks, foster innovation and support social welfare.