Getting the Framework Right 2010: Policy and Regulation for Microfinance in Asia
The report provides an update on microfinance policy and regulation in six Asian countries, namely, Bangladesh, India, Nepal, Pakistan, Sri Lanka and Philippines. It builds upon the initial 1998 study conducted by the Banking With the Poor Network (BWTP) on policy and regulations in Asian countries. The report looks at the structure of the financial system relevant to microfinance, policy and regulation in microfinance, the ongoing crisis in India and the industry’s response to concerns such as multiple lending and delinquency.
The report notes that since the last report in 1998, the modern microfinance industry has evolved dramatically. It provides certain policy recommendations with an aim to build inclusive financial systems, such as:
- Adoption of a national policy framework and a strategy on financial inclusion;
- Creation of a conducive environment for savings mobilization by a wider range of institutions than those currently involved;
- Integration of existing and emerging new ICT into the financial services industry;
- Inclusion of measures to improve price transparency and ensure consumer protection.
The report also observes that governments must invest adequate resources to improve the capacity of regulatory institutions.
