Bangladesh Bank governor says micro-finance regulation must tread fine line

atiur-rahman

The governor of the Bangladesh Bank, Atiur Rahman, has highlighted a tricky balancing act supervisors must perform when regulating micro-finance initiatives (MFIs).

Speaking at an event hosted by Nepal Rastra Bank, Rahman said regulators should not encourage over-investment by employing too-light regulation, but neither should they choke off credit to those who need it most. "So, the role of micro-finance should be strengthened through further innovations which take into account these pitfalls,"

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