A Guide to Regulation and Supervision of Microfinance

Most policy makers, donors, and private investors involved in microfinance now appreciate that poor and low-income people, like the rest of us, need a variety of basic financial services, not just credit. The ability of the market to respond to this demand depends not only on providers developing sustainable, low-cost ways to provide such services, but also on having an enabling policy and regulatory environment. Appropriate regulation and supervision of financial service providers is therefore critically important in bringing to poor and low-income people the financial services they need. This guide from CGAP explores options for the regulation and supervision of microfinance organisations.