How is microfinance being regulated in Latin America?

Trujillo-Tejada, Verónica; Muriel-Patino, Victoria; Rodríguez-López, Fernando

doi:10.3362/1755-1986.2015.028

Cited by 6 publications

(4 citation statements)

References 7 publications

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“…We find the majority of researchers analyse the regulatory development in the microfinance sector in the different countries (see, for instance, Cull et al, 2011;Haq et al, 2008;Hartarska & Nadolnyak, 2007;Hoxhaj, 2010;Jackson & Islam, 2005;McGuire, 1999;Ndambu, 2011;Pati, 2012;Purkayastha et al, 2014;Ranjani, 2012;Trujillo et al, 2014;Trujillo-Tejada et al, 2015;Yadav & Wongsurawat, 2018). Liñares-Zegarra and Wilson (2018) examine the association between size and growth of the MFIs across the different ownership structure and confirm that growth rate varies across the different ownership form of MFIs.…”

Section: Relevant Literature Reviewsupporting

confidence: 52%

Ownership and performance of microfinance institutions: Empirical evidences from India

Khan

Ahmad

Shireen³

2021

Cogent Economics & Finance

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The study examines the efficiency differences across the ownership structure of Indian microfinance institutions (MFIs) operating during the year 2005/ 06 to 2017/18 in response to regulatory reforms initiated by the Reserve Bank of India (RBI) in the year 2011. We remove the outliers from the dataset first. Thereafter, we employ the bootstrap data envelopment analysis (DEA) to assess the bias-corrected efficiency scores. To identify the performance determinants, we use bootstrap truncated regression. The empirical results suggest that the performance difference between NBFCs and Non-NBFC MFIs is not statistically significant in the sample period. Further, the study finds that the size and ownership structure of MFI has a positive and statistically significant impact on the efficiency level. Although the coefficient of PAR30 (Portfolio at risk, 30 days) is statistically insignificant, however, the results conclude that the deteriorating credit quality has hindered the efficiency level. The Indian MFI industry needs to focus on the adoption of more innovative technology and partnership with FinTech (financial technology

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Section: Relevant Literature Reviewsupporting

confidence: 52%

Ownership and performance of microfinance institutions: Empirical evidences from India

Khan

Ahmad

Shireen³

2021

Cogent Economics & Finance

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“…; Trujillo‐Tejada et al. ). This study has shown that regulation is not a magic wand for financial performance either, let alone for social delivery.…”

Section: Discussionmentioning

confidence: 98%

Microfinance Regulation and Social Sustainability of Microfinance Institutions: The Case of Nigeria and Zambia

Siwale

Okoye

2017

Ann Public Coop Econ

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This study examines the effect of regulations on microfinance institutions in Nigeria and Zambia by focusing on the post-regulation experiences and reflections of the microfinance institutions (MFIs) and their regulators. Based on in-depthinterviews with the Central Banks as regulators, MFI managers, practitioners and apex microfinance associations, the study finds that regulations in both countries have managed to professionalize the sector, but their effectiveness in augmenting the centrality of social goals to microfinance and MFIs remains doubtful. The poorly designed regulations are not only undermining social goals but also sending wrong signals to would be social investors, with implications for the social image of the industry. The study further finds that regulations have neither speeded the emergence of sustainable MFIs (especially in Zambia) nor accelerated the sectors' outreach to the poor and the financially excluded. Additionally, considerable levels of political interference and poor regulation have led to unintended consequences to the sector, further frustrating the ultimate goal of extending financial services to the poor. These findings have policy and practical implications for how microfinance engages with the regulatory logic and continues to serve those at the bottom of the pyramid.

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“…Non‐prudential regulation, on the other hand, has a complementary role in making sure financial institutions adopt appropriate business practices. It focuses on transparency and consumer protection through, for instance, a clear definition of interest rates and audited financial statements (Rosengard, 2011; Trujillo‐Tejada et al, 2015).…”

Section: Review Of the Literature On Microfinance Regulationmentioning

confidence: 99%

“…In this study, we focus on a particular country within the SSA region, Cameroon, to shed light on the contribution of regulation in the development of microfinance. Most of the literature on regulation has focused either on describing and comparing existing regulations or, especially in the case of international institutions, on providing guidelines for regulators based on perceptible best practices (Trujillo‐Tejada, Muriel‐Patino, & Rodriguez‐Lopez, 2015). There is a need for more studies that will explore how microfinance regulation reflects itself on the practices of MFIs.…”

Section: Introductionmentioning

confidence: 99%

The development of microfinance in Cameroon: Focus on regulation

Singhe¹,

Louche

2020

Strategic Change

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While the microfinance regulations in Cameroon have a positive influence in professionalizing the microfinance sector, it seems to have also created hurdles for MFIs to fulfill their social mission of financial inclusion. The evolution of activities of the microfinance sector over the years led to changes in the regulatory environment through the establishment of new regulations that progressively professionalize the sector and controlled certain derives. Financial inclusion has been hindered by insufficient supervision and tight regulations in terms of board members' qualifications, loan documentation requirements, and provisioning and liquidity requirements. Regulations still need to reflect more the specificities of the microfinance sector and be matched with adequate supervision in order to achieve its dual role of financial inclusion and safeguarding the financial system. K E Y W O R D S cameroon, financial inclusion, microfinance regulation

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How is microfinance being regulated in Latin America?

Cited by 6 publications

References 7 publications

Ownership and performance of microfinance institutions: Empirical evidences from India

Ownership and performance of microfinance institutions: Empirical evidences from India

Microfinance Regulation and Social Sustainability of Microfinance Institutions: The Case of Nigeria and Zambia

The development of microfinance in Cameroon: Focus on regulation

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