Regulatory Options to Curb Debt Stress

Categories : Regulation and Payment System Governance, Regulation of Digital Financial Services


Author: CGAP

This focus note from CGAP explores policy and regulation proposals for curbing debt stress. It argues that it is preferable to implement appropriate monitoring mechanisms and regulatory interventions at an early stage in credit market development, to detect potential debt stress and prevent reckless lending practices, thereby avoiding risks to financial markets, consumers, and the regulator’s credibility.