AMIR calls for transparency among MFIs
The Association of Microfinance Institutions in Rwanda (AMIR) is calling for changes to the way in which Microfinance Institutions (MFIs) carry out their operations.Previously, these kinds of organisations failed to carry out risk assessments and often had to declare themselves bankrupt, thus leading to a loss of customer savings, the New Times reports.
However, AMIR now wants MFIs to conduct business in a transparent way so that risks can be monitored.
This comes after Governor of the National Bank of Rwanda Francois Kanimba said earlier this month that institutions need to look at ways of ensuring financial inclusion for poorer people living in rural areas of the country.
Under the new proposals, MFIs will have to declare their interest rates in a bid to restore confidence among their clients, as well as ensure transparent pricing and reliable, quality services.
It is hoped this will mean firms do not exploit consumers with misleading products and "exorbitant" interest rates, the publication added.