Enabling Policy Frameworks

As new solutions are found to deliver financial products and services to the poor, and as these systems become more integrated in the overall financial system, policy and legal frameworks will need to adapt so that governments can play their appropriate role as facilitators of financial services for the poor. CGAP's goals in this area will be to:

• Foster diversity of institutions and financial products through policy and legal regimes that are not biased in favor of one institutional model or product,

• Establish supportive legal and regulatory frameworks that safeguard poor people's money and promote competition, and

• Develop the technical expertise of government supervisory and regulatory authorities.

CGAP is in a strong position to support the development of a sound legal and regulatory environment for microfinance. Its comparative advantage in this area stems from its neutrality, multi-donor platform, relationship with the World Bank, the IMF and regional development banks, and the leverage that these organizations have in addressing policy issues with government policymakers.