Archived Features

PAKISTAN: New Prudential Regulations for MF Banks

Prudential regulations for Microfinance Banks (MFBs) in Pakistan, as of March 2007

KENYA: Draft MF Prudential Regulations Released

The Central Bank of Kenya is seeking feedback on draft prudential regulations for deposit-taking MFIs

UNITED NATIONS: Panel Discussion on Regulation of MF

A panel discussion at UN headquarters preceding an upcoming study on good practices in regulation of microfinance.

SYRIA: General Microfinance Decree Now on MF Gateway

A new decree authorizing the establishment of microfinance-oriented banks.

Featured Essay: INDONESIA

In this essay, Sumantoro Martowijoyo -- an Indonesian microfinance expert with over 30 years of education and experience in microfinance – looks at the past, present, and future of microfinance regulation and policy in Indonesia

Country Profile Update: EGYPT

The country profile for Egypt has been completely updated. CLICK HERE to go to the Egypt homepage.

Country Profile Update: MONGOLIA

The country profile for Mongolia has been completely updated. CLICK HERE to go to the Mongolia homepage.

BANGLADESH passes Microcredit Regulatory Authority Act

For the first time, all nonprofits and cooperatives that provide microcredit will be regulated by a central authority.

Country Profile Update: KENYA

The country profile for Kenya has been completely updated. Click here to go to the Kenya homepage.

Featured Essay: INDIA

In this essay, Sanjay Sinha -- a South Asia microfinance expert with 29 years of economic and development research experience in South and Southeast Asia – looks at past, present, and future regulatory issues with respect to the Microfinance (MF) sector in India.

INDIA: New Essay Addressing Key Microcredit Regulatory Constraints

A Working Paper from the Institute for Financial Management and Research in Chennai, India.

KENYA: Microfinance Act now posted online.

Kenya's new law regulating microfinance, the Microfinance Act 2006, is now available on the Microfinance Gateway.

Country Profile Update: Bangladesh

The country profile for Bangladesh has been completely updated. Click here to go to the Bangladesh homepage.

ALGERIA: CGAP/AFD Diagnostic Report

A legal/regulatory diagnostic report.

Country Profile Update: MALAWI

The country profile for Malawi has been completely updated. Click here to go to the Malawi homepage.

Country Profile Update: PERÚ

The country profile for Perú has been completely updated by Alfredo Ebentreich, an in-country expert. Click here to go to the Perú homepage.

Featured Essay: EGYPT

In this essay, Magdy Moussa -- a Middle East/North Africa microfinance expert with over 20 years of development experience -- provides a practitioner's overview of regulation and supervision as they relate to the Microfinance (MF) industry in Egypt.

INDIA: More MFIs opting for Non-Bank Finance Company status

NBFC status associated with greater credibility, accountability, and transparency.

World Bank & IFC Release Doing Business 2007

Measuring regulatory costs of doing business around the world.

Kyrgyz Republic: Current Regulatory Framework & Recommendations for Improvement

What does the regulatory environment for microfinance look like in Kyrgyzstan? What barriers currently exist, and what can be done to facilitate the development of the microfinance industry? These questions are the subject of Gulnara Shamshieva's essay.

Bolivia: Country Profile Update

The country profile for Bolivia has been completely updated. Click here to view the profile and other resources, including an updated list of laws and recommended sources for further reading.

The Philippines: New MF Performance Standards

Through the efforts of the National Credit Council, Bankgo Sentral ng Pilipinas (Central Bank of the Philippines), and other stakeholders, the Philippines has developed a set of uniform performance standards applicable to all types of MFIs. This essay discusses the development and implementation of the standards.

FEATURE: "Consumer Protection" in Microfinance Regulation

As "client-led" products and services gain momentum, regulators and practitioners alike are paying increasing attention to the rights of the consumer in microfinance. This new feature provides a comprehensive overview of “How does Consumer Protection Relate to Microcredit?”

India: Country Profile Update

The country profile for India has been completely updated. Click here to view the profile and other resources, including an updated list of laws and recommended sources for further reading.

New Resource Center: Microinsurance

The CGAP Working Group on Microinsurance has just launched a Microinsurance Resource Center. Click here for resources related to microinsurance regulation and supervision.

West Bank and Gaza: Meeting the Demand for Microfinance

In this country-level diagnostic report, the Consultative Group to Assist the Poor (CGAP) analyzes the environment for microfinance in the West Bank and Gaza, including an analysis of the legal and regulatory environment.

New Article: How to Regulate Microfinance?

In this short article reprinted from The Financial Regulator, Timothy Lyman, Senior Policy Adviser at the Consultative Group to Assist the Poor (CGAP), discusses key principles of microfinance regulation.

Vietnam: on its way to enabling…

Last year, Vietnam released a decree on microfinance institutions that would allow both deposit and non-deposit taking MFIs to operate. In this featured essay, Doan Anh Tuan addresses the development of this regulatory framework and its expected impact on the industry.

Zambia: Will it work?

In this thought-provoking essay, Chiara Chiumya outlines the new microfinance regulations released in Zambia in January 2006. Ms. Chiumya questions whether these regulations will actually help Zambia achieve its objectives of increasing outreach of financial services to the poor.

New Tool Helps to Assess the Need for Legal and Regulatory Reform

Developed for practical use by donors, practitioners, and other stakeholders in the field, the “Legal and Regulatory Frameworks for Access to Finance: Policy and Programming Tool” provides guidelines for assessing the need for legal and regulatory reform that would increase access to finance for poor households and micro entrepreneurs.

Financing Microfinance: Do Regulatory Environments Matter?

A new paper commissioned by USAID surveys the legal and regulatory considerations affecting investor confidence in financing microfinance. Check out “The Ultimate Balancing Act: Investor Confidence and Regulatory Considerations for Microfinance.”

New Nigerian National Microfinance Policy

The Central Bank of Nigeria unveiled its National Microfinance Policy Framework in December 2005. The policy framework aims to facilitate the provision of microfinance services on a long-term, sustainable basis to the poor. See “Microfinance Policy, Regulatory And Supervisory Framework For Nigeria.”

December's Featured Essay: Kazakhstan

Donors and international NGOs realized the potential of the informal finance sector that developed in the 1990s after the collapse of the Russian centralized economy, and built a microfinance industry around it by the mid-1990s. Simultaneously, they began lobbying for changes to the legal and regulatory framework that would facilitate its growth. In this essay, Janice Stallard, Chief of Party for the USAID Central Asia Microfinance Alliance (CAMFA) project, explores the history of Kazakhstan’s legal and regulatory reform—focusing on its impact on the Kazakhstan Loan Fund—and makes suggestions for reforms still needed in Kazakhstan.

October's Featured Essay: China

While microfinance in China began in the early 1990s, it has not reached the scale one might expect in this large, densely populated country. In this essay, Du Xiaoshan, founder of China’s first microfinance organization, explores the evolution of national level policies supporting microfinance in China, focusing specifically on those areas which hinder its growth and offering recommendations for ongoing regulatory reform.

Hot off the Presses: AML/CFT Regulation and Financial Services for the Poor

The World Bank Financial Integrity Unit and the Consultative Group to Assist the Poor (CGAP) are pleased to announce the publication of "AML/CFT Regulation: Implications for Financial Service Providers that Serve Low-Income People."

The Latest Policy Diagnostics: Jordan, Morocco, and Tunisia

The CGAP Middle East/North Africa (MENA) Initiative released three policy diagnostics in July 2005. These reports make recommendations to donors and policy makers on ways to improve access to quality financial services and scale up microfinance in each of these countries.

» Jordan
» Morocco
» Tunisia

Laws and Regulations

Find links to all the relevant laws for microfinance in 50 different countries, plus recommended reading for the country, live links to the regulatory authorities and a snapshot of the investment climate.

In the News: Ongoing Regulatory Reform

Ongoing regulatory reform has been highlighted in a series of recent news articles worldwide. Find out what’s happening in Nepal, India, and Uganda.

In the News: Georgian Regulatory Reform

In February 2005, the Georgian parliament passed amendments to the Civil Code calling for the creation of a specialized legal status for microfinance institutions, putting an end to the ambiguity in their legal status.

»	Read the full article
»	See a snapshot of the Georgian regulatory environment

Featured Essay: Nigeria

Stephanie Charitonenko provides an insider’s look at recent discussions about improving the regulatory environment in Nigeria for its fledgling microfinance industry. In this featured essay, Charitonenko, who supports USAID’s Promoting Improved Sustainable MSME Services (PRISMS) Program, analyzes the proposed national microfinance policy and other developments to enhance access to financial services in Nigeria. Be sure to check out other articles in our Essays on Regulation and Supervision series in our Reference Library.

Featured Essay: Nicaragua

The Legislative Assembly of Nicaragua passed a “Special Microfinance Association Law” in early 2004.  Juan Vega, regional director of the PROMIFIN project, provides a detailed analysis of the various viewpoints in Nicaragua and the potential consequences this law may have on the country's growing microfinance industry that serves over 50% of clients in the financial system.

Featured Essay: Bosnia

The Resource Center has commissioned “Essays on Regulation and Supervision” in which policymakers, practitioners, and others provide their views on the impact of regulatory reform for microfinance. In this month’s featured essay, Tim Lyman, International Legal Advisor to Bosnia’s Local Initiatives Project, writes about the development of the regulatory environment in Bosnia and Herzegovina and what’s in store for the future.