Arowwai Industries

FINANCE AND DEVELOPMENT

G L A D Y S F E R R E R - A N D R E A V A R G A S - Z I L J A N E V I L L A C R U Z
FINANCIAL SYSTEM

Usually transforms short-term liabilities

into long-term assets.

Finance is a driver of sustainability.

ROLE OF FINANCE IN
DEVELOPMENT

Finance involves borrowing

& lending, investing, raising

capital, and selling &

trading securities.

The purpose of these pursuits is to allow companies and individuals

to fund certain activities or projects today, to be repaid in the
future based on income streams generated from those activities.
 LINK THE SAVERS AND INVESTORS
FINANCIAL INSTITUTION
Banks, Bond Markets or Stock Market
It links the savers and
borrowers of the economy
VENTURE CAPITAL
Start Up Businesses
A form of private equity and a type of
financing that investors provide to startup
companies and small businesses that are
believed to have long-term growth
potential.
Platinum Service
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SCREEN AND SMOOTHEN MANAGE RISKS MANAGE PAYMENT

MONITOR CONSUMPTION SYSTEMS
INVESTMENT
FINANCE AND
GOVERNANCE

 ..................................................................................................

WHAT IS
FINANCE AND
GOVERNANCE?

.................................................................
Finance refers to the management
of money.

Governance refers to the process of

decision-making and the mechanism
through which organizations are
managed and controlled.
GOOD & BAD GOVERNANCE
01.
Effective corporate governance is the examination of
the control of a company as exercised by its directors. So
it is essential for ensuring that financial resources are
allocated efficiently and effectively. Good governance
practices help organizations make sound financial
decisions, establish oversight mechanisms, and reduce
the risk of fraud and abuse.

02.
Poor governance can lead to financial
mismanagement, corruption, and misallocation of
resources. It erodes public trust and can lead to the
failure of organizations. In conclusion, finance and
governance are crucial components of organizational
success.
 MICROFINANCE

Microfinance is defined as the provision of financial

services such as loans , savings , insurance and
other financial products to low-income individual
and household who do not have access to
traditional banking services. It has been an effective
tool in providing access to financial services to the
poor, particularly on developing country.

MICROCREDIT

Microcredit is a financial service that provides small loans

to poor entrepreneurs or people who do not have access
to traditional banking services. It enables people lift
themselves out of poverty by starting or expanding small
businesses. It is a tool for poverty alleviation and
economic development. Interest on microcredits are
relatively high, sometimes as much as 35% per annum or
higher, but these organizations, especially the successful
ones, do not allow individuals to borrow more that they
can afford to repay.
 MICROSAVINGS

The micro savings system

is an option available to
people who want to build their assets but have
limited income to spare.

Example:
Rotating Savings and Credit Associations (ROSCAs)

Informal financial institutions that exist worldwide, in

which all participants contribute to a common fund and
take turns to receive a return.
 TWO TYPES OF ROSCSA

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 The Islamic Financial System promotes
economic gropwth.
The islamic Finance Model's application is bound
by a conventional body of rules and regulations.

Philippines would contribute to the Halal industry

to address the international system of Islamic
Finance.
 IDENTIFICATION
QUIZ & ENUMERATION
IDENTIFICATION

Usually transforms short-term liabilities into long-term assets.

It links the savers and borrowers of economy.

Other options accessible to those who desire to accumulate

assets but have little extra money.

A tool for poverty alleviation and economic development.

This can lead to the failure of the organization.

ENUMERATION

} Three roles of finance.

} Two types of ROSCAs

Answers:

Financial System

Financial Institution

Microsaving

Microcredit

Poor Governance
 Answers:

Link the savers and investors OR manage payment

systems
Screen and monitor investments

Smoothen consumption OR Manage risks

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THANK YOU