Abstract
AbstractInterest rate caps may generate adverse effects for microfinance institutions and their clients. Interest rate caps imposed in competitive and highly saturated markets may favor the commercial mindset of microfinance institutions to the detriment of social outreach. In Cambodia, the recent interest rate cap has likely not contributed to protecting the poor, slowing down the market, or reducing the risk of over‐indebtedness. Policymakers and regulators should consider market conditions, especially the degree of competition when making regulatory decisions that may substantially affect the microfinance industry.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.