Enabling Environment for Microfinance
A supportive enabling environment for microfinance is critical to the growth of a sustainable microfinance industry. The development of a legal and regulatory framework can facilitate the formalization of microfinance institutions (MFIs) and promote best practices and industry standards. In some cases, USAID can accomplish more by changing a regulation or helping implement a law than it can by supporting a single institution to deliver direct services. USAID’s Microenterprise Development office supports the reform of laws, regulations, and policies to expand access to financial and other services by the underserved poor. Resources under this theme provide case studies about best practices in other countries and tools to help MFIs, microfinance associations and networks, regulators, and donors to select, advocate, and implement appropriate regulatory frameworks.