Microfinance and COVID-19: A Framework for Regulatory Response
A framework for identifying and assessing crisis responses must take account of the special characteristics of microfinance and the diversity of institutions offering microfinance services. This calls for an approach that is empathetic toward vulnerable clients, attuned to the specific risks of microfinance services, and open to communication and consultation with the industry. This leads to the question of how regulators should respond. A review of current practice in a range of countries suggests there are six key steps to be taken at the level of regulation and policy.