Transitions to Private Capital: Regulatory Challenges to Private Sector Investment

Private sector investment is the key to microfinance entering the mainstream and growing significantly. However, private sector investment is lagging, in part due to the legal and regulatory environment. This microNOTE explores two broad sets of regulations that hinder private sector investment in microfinance institutions (MFIs). It summarizes pertinent regulatory issues that restrict private sector investment and what additional research is needed to address the problem. The research for this microNOTE was directed by Marc de Sousa-Shields from Enterprising Solutions, Research Director for the Transitions to Private Capital topic under AMAP KG.