Investor Presentaiton
Regulatory constraints
Credit requirements increases cost
and risk, limited consumer
protection
.
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Consumer protection principles not harmonized across institutions, including
standards on fees and effective interest rate disclosure and over-indebtedness
No mandatory requirements to share credit information
Collateral realization problematic, increases risk and cost (>90% of claims lost,
80% of claims go to cost to enforce). Title deeds problematic.
No population register or identity documents increasing cost, risk and access.
Tax provisions against non-performing loans drains cash flow whilst increasing
cost and incentivizes under reporting of doubtful debts.
Proportional prudential requirements needed for lower tier banks and non-
deposit taking MFIs as it severely hampers lending at smaller scale
Demarcation between banks and MFI client bases negates business case for MFISView entire presentation