The Ultimate Balancing Act

  • Date Posted: June 2, 2010
  • Authors: Kate Druschel, Anna Bantug-Herrera
  • Organizations/Projects: Chemonics International
  • Document Types: Primer or Brief, Policy
  • Donor Type: U.S. Agency for International Development

This microNOTE explores the legal and regulatory framework for MFI investment transactions and its impact on investor confidence in the transition to private capital. Drawing upon recent field visits to Uganda, Peru and the Philippines, the paper attempts to address the questions: What regulatory practices promote investor confidence and provide the impetus to increase private investment in microfinance? At what point do legal and regulatory obstacles become too costly to bear and deter commercial investment in microfinance?