How is financial regulation different for micro-finance?

Abstract

What is the role of nancial regulation in the eld of micro- nance? This paper identifies 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 o er draft law which embeds a regulatory treatment of microfinance that flows from this analysis.