Guidelines of Principles for Effective Regulation and Supervision of Microfinance Operations

The primary purpose of this document is to present guidelines of principles for international use that comprise best practices on the topic of regulation and supervision of microfinance operations executed by deposit-taking financial institutions. The first chapter analyzes the relevance of the application of the Core Principles for Effective Banking Supervision, as well as the Basel II principles issued by the Basel Committee on Banking Supervision. to microfinance institutions. In the second chapter, a set of recommendations is presented, synthesizing the conclusions from the process developed in this document. This includes preconditions and principles for effective regulation and supervision of microcredit portfolios, as well as for the microfinance institutions. The recommendations aim to facilitate a harmonious development of microfinance.