Microfinance Regulation and Supervision: A Multi-Faced Prism of Structures, Levels and Issues

73 Pages Posted: 7 Apr 2013

See all articles by Eugenia Macchiavello

Eugenia Macchiavello

University of Genoa, Department of Law - Section of Business and Economic Law; Genoa Centre for Law and Finance

Date Written: November 15, 2012

Abstract

Microfinance is a new, varied and intriguing sector for academics, practitioners and regulators. The current debate about financial sector reforms after the global financial crisis, the recent phenomenon of commercialization of microfinance and related criticism including scandals about predatory lending in the sector have stimulated a wide debate on the topic of regulating microfinance at domestic and transnational levels. This paper deals with such challenging topics, analyzing the different and coexisting levels of regulation, the variety of interests touched upon and the inappropriateness of our traditional legal categories, and proposes a framework for the allocation of rulemaking power among such levels. The paper argues for a differentiated approach based on the characteristics, interests, forces and instruments involved at each level and for each issue (e.g., development perspective versus financial regulation, prudential versus non-prudential regulation, financial markets versus consumer protection). The focus of the discussion will be on prudential aspects of financial regulation, but in order to better clarify the reasoning and justify the arguments about the allocation of regulatory power among different levels, the work examines some aspects and examples from other sectors, such as consumer protection.

Keywords: microfinance, regulation, financial regulation, prudential regulation, consumer protection, transnational regulation, private regulation, supervision

Suggested Citation

Macchiavello, Eugenia, Microfinance Regulation and Supervision: A Multi-Faced Prism of Structures, Levels and Issues (November 15, 2012). New York University Journal of Law and Business, Vol. 9, No. 1, 2012, Available at SSRN: https://ssrn.com/abstract=2243595

Eugenia Macchiavello (Contact Author)

University of Genoa, Department of Law - Section of Business and Economic Law ( email )

Via Balbi 22, 2nd floor
Genova, Genoa 16126
Italy

Genoa Centre for Law and Finance ( email )

Via Balbi, 22
16126 Genova
Italy

HOME PAGE: http://www.clfge.org/teams/eugenia-macchiavello/

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