Spotlight on: SOUTH ASIA

Essays on microfinance regulation and supervision from Pakistan, Nepal, and India.

In this spotlight on South Asia, we present three recent essays analyzing the regulation and supervision of microfinance in South Asia:

INDIA: In "Microfinance Regulation for Financial Inclusion: The 'Street Child' Needs Nurturing," Sanjay Sinha looks at the state of regulation of microfinance in India. He argues that while everyone is aware that something needs to be done with respect to microfinance regulation and policy, action so far has been limited. For more details, click here.

NEPAL: In "The Regulation Muddle in Nepal," Sanjay Sinha & Swetan Sagar look at Nepal's regulatory framework for institutions providing microfinance. The authors note that overlapping and conflicting regulations, disparate treatment of similar institutions, and evasion of the spirit of the law are limiting sector development. They conclude with recommendations for rationalizing the legal framework. For more information, click here.

PAKISTAN: Finally, in "Amendments to the Microfinance Institutions Ordinance, 2001: Implications for the Sector," Syed Mohsin Ahmed and Mehr Shah discuss the regulation of microfinance banks (MFBs) in Pakistan. The authors begin with a historical look at the decision to regulate microfinance and MFBs, and the initial efforts by the State Bank of Pakistan to do so. They look at improvements in the regulatory framework and analyze recent amendments to the Ordinance governing MFBs. Finally, the authors propose additional amendments that they believe could continue to improve the legal/regulatory framework for microfinance in Pakistan. For more information, click here.