DCG Report 13
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Bekele Shiferaw and Wolday Amha
Since the 1990s, the MFIs are by and large considered as effective financial intermediaries in the delivery of scare investment capital to the urban and rural poor. The mushrooming of MFIs as private share companies has also necessitated formulation of a suitable regulatory framework. The new regulatory framework proposed prudential practices to ensure accountability and increase the safety of the resources managed by MFIs.
Although Ethiopia has established a well-defined regulatory and supervision framework for the micro-finance industry, no systematic assessment and evaluation has yet been carried out regarding its performance and effectiveness. This study, sponsored by the DCG, is an attempt to fill this gap and generate policy-relevant information regarding the performance of the new regulatory and supervision framework and issues that may require improvement.
This study is expected to help the member organizations of DCG in Ethiopia to position themselves, and their credit and savings programmes, in relation to the proclamation issued by the Ethiopian government (Proclamation No. 40/1996). The main objectives of this study thus are:
- To assess the regulatory framework
- To assess the legislation’s range of applications
- To analyse the legislation’s effect on different forms of credit and savings programs.
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