Global microscope on the microfinance business environment 2012

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Key changes and impacts since last year:
l Market competition continues to be distorted by
the government through interest rate restrictions,
directed-lending requirements, and the presence
of subsidised public micro-lenders. There are
lingering concerns over the health and
transparency of public institutions active in
microfi nance.
© The Economist Intelligence Unit Limited 2012
<strong>Global</strong> <strong>microscope</strong> on the microfi nance business environment 2012
l As of late 2011, all regulated institutions must
have a microcredit portfolio. This includes
development banks, which have been forced
whether to choose to specialise in microfi nance.
Although initially these changes were seen as
positive to the development of microfi nance, in
practice the changes have had very little impact in
the sector, owing to a large extent to the lack of
clarity regarding the defi nition of a microloan.