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How is financial regulation different for micro-finance?

Author

Listed:
  • M. Sahoo
  • Renuka Sane

    (Indira Gandhi Institute of Development Research)

  • Susan Thomas

    () (Indira Gandhi Institute of Development Research)

Abstract

What is the role of financial regulation in the field of micro-finance? This paper identiles two features of micro-finance which call for unique treatment in policy considerations as compared to policy thinking in the mainstream body of financial law. These features are credit recovery and the credit risk of the MFI, when credit access is enabled through the structure of the joint liability group. The paper goes on to offer draft law which embeds a regulatory treatment of micro-finance that flows from this analysis.

Suggested Citation

  • M. Sahoo & Renuka Sane & Susan Thomas, 2012. "How is financial regulation different for micro-finance?," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-005, Indira Gandhi Institute of Development Research, Mumbai, India.
  • Handle: RePEc:ind:igiwpp:2012-005
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2012-005.pdf
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