Financial Regulation and its Significance for Microfinance in Latin America and the Caribbean

The objective of this paper is to provide a regional overview of financial regulations in Latin America and the Caribbean which have the potential of constituting important obstacles to microfinance. The study attempts to identify the regulations and restrictions which may be inappropriate or inadequate for microfinance while, at the same time, be satisfactory and effective for the great majority of financial institutions. As defined, these regulations would thus impose an unjustified differential impact on institutions involved in microfinance. This study will serve as a first step to identify these issues in a region-wide perspective as well as to indicate which countries are in need of further study and/or reform.