Christen, Robert PeckLyman, Timothy R.Rosenberg, Richard2014-02-102014-02-102003-07https://hdl.handle.net/10986/16958Many developing countries and countries with transitional economies are considering whether and how to regulate microfinance. These guiding principles are formulated for the regulation and supervision of microfinance. This document is divided into five sections. The first section of the paper discusses terminology and preliminary issues. The second section outlines areas of regulatory concern that do not call for "prudential" regulation. The next section discusses prudential treatment of microfinance and Microfinance Institutions (MFIs). The fourth section briefly looks at the challenges surrounding supervision, and the final section summarizes some key policy recommendations.en-USCC BY 3.0 IGOABUSIVE LENDINGACCESS TO FINANCIAL SERVICESACCESS TO LOANSACCOUNTINGADMINISTRATIVE COSTADMINISTRATIVE COSTSAMOUNT OF CAPITALAMOUNT OF LOANARBITRAGEAVAILABILITY OF CREDITBANK ASSETSBANK DEPOSITSBANK LOANBANK MANAGEMENTBANK PORTFOLIOBANK RATESBANK REGULATIONSBANKING LAWBANKING REGULATIONBANKING SERVICESBANKING SYSTEMBARRIERS TO ENTRYBONDBONDSBORROWERBORROWINGCAPITAL ADEQUACYCAPITAL ADEQUACY NORMSCAPITAL REQUIREMENTSCAPITAL STRUCTURECASH DEPOSITSCASH FLOWCENTRAL BANKCERTIFICATES OF DEPOSITCHECKSCOLLATERALCOLLATERAL FOR LOANSCOLLATERAL REGISTRATIONCOLLECTION PROCEDURESCOMMERCIAL BANKCOMMERCIAL BANK ASSETSCOMMERCIAL BANK LOANSCOMMERCIAL BANKSCOMMERCIAL BORROWINGCOMMERCIAL LAWSCOMMERCIAL LOANCOMMERCIAL LOANSCOMMERCIAL PAPERCONSUMER LENDINGCONSUMER PROTECTIONCONVENTIONAL BANKCONVENTIONAL BANK LOANSCOOPERATIVESCOST OF LOANSCREDIT BUREAUCREDIT BUREAUSCREDIT CLUBSCREDIT HISTORIESCREDIT INFORMATIONCREDIT INFORMATION SYSTEMSCREDIT PERFORMANCECREDIT RISKCREDIT SOURCESCURRENCYDEFAULTSDEPOSITDEPOSIT ACCOUNTSDEPOSIT INSURANCEDEPOSITORDEPOSITORSDEPOSITORY FINANCIAL INSTITUTIONDEPOSITORY INSTITUTIONSDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT BANKSDIVERSIFICATIONEARNINGSECONOMIC COOPERATIONECONOMIES OF SCALEEQUITY CAPITALEQUITY INVESTMENTFIDUCIARY RESPONSIBILITYFINANCE COMPANIESFINANCIAL ANALYSISFINANCIAL ASSETSFINANCIAL CAPACITYFINANCIAL HEALTHFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIARYFINANCIAL INTERMEDIATIONFINANCIAL PERFORMANCEFINANCIAL REGULATIONFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL STATEMENTSFINANCIAL SYSTEMFINANCIAL SYSTEMSFOREIGN INVESTMENTFORMAL FINANCIAL SERVICESFRAUDFUTURE LOANSGROUP GUARANTEESGROUP-LENDINGHIGH INTEREST RATESHOLDINGHOST COUNTRYINFORMATION SERVICEINFORMATION SERVICESINTEREST RATEINTEREST RATE CAPINTEREST RATE CAPSINTEREST RATESINTERNATIONAL BANKINTERNATIONAL DEVELOPMENTINTERNATIONAL INVESTMENTINVESTMENT FUNDINVESTMENT FUNDSINVESTMENT REGULATIONSISSUANCEJUDICIAL REFORMLAND AS COLLATERALLEGAL FRAMEWORKLEGAL FRAMEWORKSLEGAL PROHIBITIONLEGAL SYSTEMSLENDERLENDERSLENDING LIMITSLEVEL PLAYING FIELDLIQUIDITYLOANLOAN APPLICANTSLOAN CONTRACTLOAN CONTRACTSLOAN DOCUMENTATIONLOAN PORTFOLIOLOAN PROCEEDSLOAN SIZESLOCAL SAVINGSLOCAL SECURITIESLOW-INCOME BORROWERSLOWER-INCOME BORROWERSMATURE MARKETMERCHANTSMFIMFISMICRO-BORROWERSMICROCREDITMICROENTERPRISESMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMICROFINANCE LOANMICROFINANCE SECTORMICROLOANMINIMUM CAPITAL REQUIREMENTSMONETARY POLICYMOVEABLE COLLATERALNET WORTHNEW COMPANYNEW MARKETPHYSICAL SECURITYPOOR BORROWERSPOOR CLIENTSPORTFOLIOSPREJUDICEPRIVATE CREDITPRIVATE CREDIT BUREAUSPROFITABILITYPRUDENTIAL REGULATIONPRUDENTIAL REGULATIONSPRUDENTIAL STANDARDSPRUDENTIAL SUPERVISIONPUBLIC CREDITPUBLIC EDUCATIONPUBLIC REGISTRYREAL ESTATEREGULATORY FRAMEWORKREPAYMENTREPAYMENT CAPACITYREPAYMENT PERFORMANCEREPAYMENT RATESREPAYMENT RECORDRESERVERESERVE REQUIREMENTSRESERVESRETAIL BANKSRETURNRISK MANAGEMENTRISK PROFILERURAL BANKSSAVINGSSAVINGS SERVICESECURITIESSECURITIES LAWSECURITIES MARKETSSECURITIES REGULATIONSECURITY INTERESTSELF-REGULATIONSHAREHOLDERSHAREHOLDERSSTART-UPSTART-UP COSTSSUPERVISORY AGENCYSUPERVISORY AUTHORITIESSUPERVISORY AUTHORITYSUPPLY OF CREDITTAXTAX BENEFITSTAX DEDUCTIONTAX TREATMENTTECHNICAL ASSISTANCETRANSACTIONUNSECURED LOANSVILLAGE10.1596/16958