Paper
Microfinance Regulation in Peru: Current State, Lessons Learned and Prospects for the Future
Regulatory environment for microfinance in Peru
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13 pages
This paper states that the regulation and supervision of microfinance in Peru began as early as the 1980s, when the first municipal savings banks were opened. Peru's regulatory body then created two other licenses: rural savings banks and regulated, credit-only NGOs which both other microfinance as well.
This essay describes the regulatory environment for microfinance in Peru and analyzes the lessons learned over almost two decades of experience in regulating microfinance.
The paper further discusses the reasons for MFI closures during this period including:
- Impact of minimum capital requirements;
- Need for tailored supervisory practices;
- Role a strong internal control system should play for MFI growth and increased competition in the sector.
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