Regulatory Alerts2026-01-06
Law No. 2017-026 on Microfinance
Enacted by the Presidency of Madagascar, Law No. 2017-026 overhauls the national microfinance sector by classifying institutions into deposit-taking and credit-only categories and modulating prudential supervision according to risk levels. The legislation empowers the Banking and Financial Supervision Commission to enforce tailored governance standards, authorize digital financial services and insurance products, and mandate membership in national payment systems to ensure interoperability. It establishes a comprehensive crisis resolution framework, including deposit guarantees and dedicated recovery funds, while instituting strict prohibitions on politically exposed persons and illegal microfinance practices to safeguard depositors and promote financial inclusion.