Confusion exists concerning the relationship between the issues of depositor protection, legal form, commercialization and professionalization on the one hand, and regulation on the other. This lack of
clarity inhibits action. This article opens by presenting a background against which regulation appears increasingly necessary, but suggests that other mechanisms may be more appropriate for many MFIs.
It presents various models for protecting depositors, but cautions that any regulatory framework must be assessed for practicality and the cost of supervision and enforcement. The article suggests that
commercialization may be appropriate for some MFIs. It concludes that many of the steps taken towards creating a regulatory framework are in the interests of all stakeholders.
- The impact of economic liberalization on small companies' competitiveness
- Experiences in privatizing public sector environmental services in Peru
- The limitations of group-based microfinance and ways to overcome them
- Factors affecting the financing cost of microfinance institutions: panel evidence
- Reviews and resources