Resource information
Many developing countries and countries
with transitional economies are considering whether and how
to regulate microfinance. These guiding principles are
formulated for the regulation and supervision of
microfinance. This document is divided into five sections.
The first section of the paper discusses terminology and
preliminary issues. The second section outlines areas of
regulatory concern that do not call for
"prudential" regulation. The next section
discusses prudential treatment of microfinance and
Microfinance Institutions (MFIs). The fourth section briefly
looks at the challenges surrounding supervision, and the
final section summarizes some key policy recommendations.
