Microfinance consensus guidelines : A guide to regulation and supervision of microfinance

Abstract

This Guide updates the Consultative Group to Assist the Poorest (CGAP)'s 2003 Guiding Principles on Regulation and Supervision of Microfinance. This Guide addresses the regulatory and supervisory issues that are specifically relevant to formal financial services for poor and low-income people. It focuses on private actors - both for-profit and nonprofit. Financial regulators and supervisors are the primary intended audience. Part I discusses preliminary issues, such as the definitions of microfinance and microcredit, financial inclusion as a regulatory objective, and the difference between prudential and non-prudential regulation. Part II discusses prudential regulation of depository institutions engaged in microfinance. Part III looks at the challenges surrounding supervision of depository institutions engaged in microfinance. Part IV discusses areas of non-prudential regulatory concern that affect both depository and non-depository institutions engaged in microfinance. Part V addresses the regulatory issues relevant to branchless banking. Part VI discusses regulation of micro-insurance, especially when it is sold or administered by microfinance providers.