Marie Michael Library

Issues in the regulation and supervision of microfinance

Christen, Robert

The majority of the world's labor force works as self employed or in tiny businesses with fewer than 5 employees. In most countries, ninety percent of these working poor can not go to a bank and open an savings account; much less, take out a loan. To get these services, low income families turn to informal arrangements such as rotating savings and loan groups, borrowing from family, friends and moneylenders, and saving through the purchase of real assets like building materials, gold necklaces, or seed.