Other actors may have different motivations that may not be beneficial to microfinance, such as the desire on the part of many governments to impose interest-rate ceilings. This article cautions against
the 'rush to regulate'. It first outlines the practical problems faced by bank supervisors who are asked to take responsibility for MFIs, and points to the costs of supervising MFIs. The various options
for regulation are discussed, and the recommendations include the following: Credit-only MFIs should generally not be subject to prudential regulation in which the government supervisory agency is expected
to monitor the financial soundness of the licensed institution. Small community-based MFIs should not be prohibited from deposit taking just because they are too small or remote to be regulated effectively.
The push to create special regulatory windows for MFIs may make sense in a few developing countries, but in most it is probably premature right now, running too far ahead of the organic development of the
local microfinance industry. Self-regulation by MFI-controlled federations is highly unlikely to be effective.
Regulation of microfinance NGOs
Jackson, Kenneth E.
International Journal of Rural Management, Vol. 1 (2005), Iss. 1 P.45https://doi.org/10.1177/097306800400100103 [Citations: 7]
Microfinance regulation influence on small firms’ financing in Tanzania
Satta, Tadeo Andrew
Journal of Financial Regulation and Compliance, Vol. 12 (2004), Iss. 1 P.64https://doi.org/10.1108/13581980410810696 [Citations: 8]
The determinants of interest rates in microfinance: Age, scale and organizational charter
Nwachukwu, Jacinta C.
Asongu, Simplice A.
Review of Development Economics, Vol. 22 (2018), Iss. 3 P.e135https://doi.org/10.1111/rode.12402 [Citations: 2]
Enterprise Characteristics and Constraints in Developing Countries
Satta, Tadeo Andrew
The International Journal of Entrepreneurship and Innovation, Vol. 4 (2003), Iss. 3 P.175https://doi.org/10.5367/000000003101299546 [Citations: 14]
Accès aux services financiers, inclusion et durabilité économique en Afrique
Chapitre 1. L’inclusion financière des populations pauvres sous l’angle des effets du business model des services financiers des IMF au Maroc
El Bouhadi, Abdelhamid
El Khider, Abdelkader
2020https://doi.org/10.3917/har.benal.2020.01.0029 [Citations: 0]
Microfinance : un état des lieux
Mondes en développement, Vol. no 126 (2004), Iss. 2 P.9https://doi.org/10.3917/med.126.0009 [Citations: 8]
- Development impact bonds: learning from the Asháninka cocoa and coffee case in Peru
- Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa
- Value chain development for rural poverty reduction: A reality check and a warning
- What is cocoa sustainability? Mapping stakeholders’ socio-economic, environmental, and commercial constellations of priorities
- Impact assessment of commodity standards: towards inclusive value chains