Impact of Government Regulation on Microfinance

Microfinance has demonstrated success as a poverty reduction strategy, but the critical challenge now is to make microfinance sustainable and ubiquitous. By increasing microfinance' s scope (number of individuals reached), impact (effect on well-being of borrowers), depth (ability to reach the...

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Bibliographic Details
Main Authors:	Hubka, Ashley, Zaidi, Rida
Language:	English
Published:	Washington, DC: World Bank 2012
Subjects:	World Development Report 2005
Online Access:	http://hdl.handle.net/10986/9133

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spelling	okr-10986-91332021-04-23T14:02:44Z Impact of Government Regulation on Microfinance Hubka, Ashley Zaidi, Rida World Development Report 2005 Microfinance has demonstrated success as a poverty reduction strategy, but the critical challenge now is to make microfinance sustainable and ubiquitous. By increasing microfinance' s scope (number of individuals reached), impact (effect on well-being of borrowers), depth (ability to reach the poorest of the poor) and the number of financial products, it can be made available not just to the moderate poor at whom it has traditionally been targeted, but also to the extreme poor and the vulnerable non-poor. Bringing about this change in the scale will require the commercialization of microfinance, with MFIs transforming themselves into formal financial institutions, and a shift in the nature and degree of government involvement. Governments can encourage sustainable, market-based microfinance by: 1) eliminating unfair competition from public institutions; 2) undertaking regulatory reform; and 3) improving the business environment. 2012-06-26T15:39:26Z 2012-06-26T15:39:26Z 2005 http://hdl.handle.net/10986/9133 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Africa Latin America & Caribbean Europe and Central Asia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	World Development Report 2005
spellingShingle	World Development Report 2005 Hubka, Ashley Zaidi, Rida Impact of Government Regulation on Microfinance
geographic_facet	Africa Latin America & Caribbean Europe and Central Asia
description	Microfinance has demonstrated success as a poverty reduction strategy, but the critical challenge now is to make microfinance sustainable and ubiquitous. By increasing microfinance' s scope (number of individuals reached), impact (effect on well-being of borrowers), depth (ability to reach the poorest of the poor) and the number of financial products, it can be made available not just to the moderate poor at whom it has traditionally been targeted, but also to the extreme poor and the vulnerable non-poor. Bringing about this change in the scale will require the commercialization of microfinance, with MFIs transforming themselves into formal financial institutions, and a shift in the nature and degree of government involvement. Governments can encourage sustainable, market-based microfinance by: 1) eliminating unfair competition from public institutions; 2) undertaking regulatory reform; and 3) improving the business environment.
author	Hubka, Ashley Zaidi, Rida
author_facet	Hubka, Ashley Zaidi, Rida
author_sort	Hubka, Ashley
title	Impact of Government Regulation on Microfinance
title_short	Impact of Government Regulation on Microfinance
title_full	Impact of Government Regulation on Microfinance
title_fullStr	Impact of Government Regulation on Microfinance
title_full_unstemmed	Impact of Government Regulation on Microfinance
title_sort	impact of government regulation on microfinance
publisher	Washington, DC: World Bank
publishDate	2012
url	http://hdl.handle.net/10986/9133
_version_	1764408590769061888

Impact of Government Regulation on Microfinance

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