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4.3 Accompanying Measures: Microfinance in Africa - Experience and Lessons from Selected African Countries
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| Guest post by: International Monetary Fund |
Article Overview: The capacity of MFIs has an important bearing on the compliance with regulatory requirements. It is therefore important to put in place appropriate measures in the following areas:
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Free Download - References: Stock Market Development in Sub-Saharan Africa By International Monetary Fund |
4.3 Accompanying Measures: Microfinance in Africa - Experience and Lessons from Selected African Countries
(IMF Working Paper, Prepared by Anupam Basu, Rodolphe Blavy, and Murat Yulek1, September 2004)
The capacity of MFIs has an important bearing on the compliance with regulatory
requirements. It is therefore important to put in place appropriate measures in the following
areas:
• capacity building at the institutional level including in bookkeeping and reporting
standards, strengthening of internal controls and credit decision mechanisms, and
improving technology and human resources;
• similar capacity constraints should be addressed on the supervision side, ensuring
competence and effectiveness and focus (given the high unit costs of supervision)
of supervising staff;
• development of the borrower database infrastructure through improved data
compilation at an institutional or sectoral level and establishment of credit bureaus;
• finally, the general judicial environment also has an important bearing on the
development of the sector. The enforcement of microfinance regulations and
general business related laws is crucial for the development of a formal
microfinance sector as it is for the rest of the financial sector in general.
The first two are areas where a coordinated effort by governments and donors can be helpful.
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About the Author: International Monetary Fund RSS for International's articles - Visit International's website The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. Since the IMF was established its purposes have remained unchanged but its operations—which involve surveillance, financial assistance, and technical assistance—have developed to meet the changing needs of its member countries in an evolving world economy. Click here to visit International's website 23 Looking for Financial Sustainability Microfinance in Africa Experience and Lessons from Selected African Countries 20 Deposit Collection and Credit Extension Microfinance in Africa Experience and Lessons from Selected African Countries Expenditure Composition and Growth Moving Forward International Community What Drives Chinas Growing Role in Africa |
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