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IMPORTANCE AND PROPERTIES
OF MF
REVISION - Financial system- MDGs & poverty - Financial exclusion & financial inclusion - Mf methodology
WHAT ARE THE IMPORTANCE AND THE ROLE OF MF?
The importance of the MF stems out from its important roles in reduce poverty and contribution to the economic and social development operations
MF CONDUCTS THE FOLLOWING:
Provide financial and non-financial services for small projects sectors
Increasing the participation of the small sector in the national economy
Increasing the income of the small projects owners
Contribution to reduce the problem of unemployment
Introduction of entities able to offer these services continuously,
THE PROPERTIES OF MF
What distinguishes the MF from the other financial types?
1-MF is an information-based financing2-MF funds part of or the whole or more than
one project circle3-The financing is given to both the customer
and the activity
Negative behaviors' infection is spreading among the customers requiring an effective decisiveness.
Social relationships have an important role in MF.
MF is a development financing that change positively the customers' behaviors for it includes an educational process.
2-\ WHAT IS THE FINANCIAL INTERMEDIATION:
The financial institutions act as a financial intermediary between the parties of economic transactions
The first party: the owners of the surplus: they are those whose income is more than their expenses
The second party: the owners of the deficit: they are those whose expense is more than their income
The financial institutions are considered the best direction for realizing the two parties' interests. This can be realized through gathering the small amounts from savings and deposits of the large numbers of surplus's owners and offering them to with huge amounts to the deficit's owners.
3\ WHAT ARE THE FINANCIAL MARKETS?
FINANCIAL MARKETS?
Money market
Capital market
MONEY MARKET It is the market where short-term
transactions take place (less than a year). It mainly concentrates on the transactions related to debts and loans and the commercial banks (deposits banks) are one of the important institutions operate in this market
CAPITAL MARKET It is the market where the long-term
transactions take place (more than a year). It mainly concentrates on the transactions related to property rights (shares and bonds) and the special banks (investment banks) are one of the important institutions operating in this market.
Break 5 min
3 PROBLEMS FACING THE MF IN SUDAN:
STATE'S PROBLEMS strategic plans The non-existence of an administrative and legal umbrella for the MF.
The high taxes‘ lack of information.
BANKS' PROBLEMS the high of financing cost. un sufficient guarantees valid working license certificate for the operation site The smallness of the amount of money Weak follow-up to the financing projects
due to the lack of staff. The majority of banks' branches are
concentrated in the big cities
C\ SMALL BUSINESSES SECTOR PROBLEM:
The producers' failure to marketing The high cost of the raw materials Lack of the administrative aspects
experience
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