AThe national regulatory framework for finance

Appropriate regulations are required in a variety of areas, including collateral, bank supervision, interest rates and contracts. In some cases, as for interest rates, an absence of regulation may be preferable to existing specifications. Inappropriate policies, on bank supervision and movable collateral for example, not only fail to encourage the growth of rural financial intermediation but often they have the unintended effect of actually inhibiting it, in commercial banks as well as in microfinance institutions.

Was this article helpful?

0 0

Post a comment