Financial Regulation and Its Significance for Microfinance in Latin America and the Caribbean
Based on a questionnaire sent to 23 Bank Superintendencies/Central Banks in Latin America and the Caribbean.
Focuses on financial regulations which, although appropriate for most institutions, may have a negative impact on microfinance institutions. Such regulations are particularly costly as they impose restrictions which are inappropriate with financial service delivery methods in microfinance or which are unable to decrease risks faced by microfinance institutions.
Identifies a number of areas in which biases could exist, including:
- Capital adequacy requirements;
- Collateral requirements;
- Restrictions on operations of financial entities.
Recommendations are proposed on how to deal with or eliminate these.
[Adapted from author's abstract]