Clifford Chance
Key Issues in Microfinance Legislation and Regulation
10 November 2011
The regulation of microfinance is becoming increasingly topical and significant to microfinance institutions (MFIs). Regulators around the world seem to be increasingly aware of the necessity of implementing legislative and regulatory frameworks allowing the microfinance industry enough flexibility to innovate and grow, whilst maintaining rules and restrictions to protect low income and often vulnerable microfinance clients. Ghana offers an example, where in July 2011 the regulator issued new legislation that covers the entire microfinance sector, including semi-formal and informal institutions which were previously unregulated.
This briefing provides an overview of the key factors to consider when assessing legislative and regulatory frameworks for microfinance. These issues are relevant to all actors operating or considering to operate in microfinance, from MFIs to governments, non-governmental organisations (NGOs) and commercial banks.
