Regulatory Alerts2018-02-16
Law No. 2017-026 on Microfinance
Issued by the Presidency of Madagascar and enacted by the National Assembly and Senate in late 2017, Law No. 2017-026 comprehensively overhauls the national microfinance regulatory framework to enhance sector stability, financial inclusion, and consumer protection. The legislation reclassifies institutions into deposit-taking and credit-only categories, mandates risk-based prudential and non-prudential rules, and establishes a dedicated resolution mechanism and deposit guarantee fund to manage distressed entities. It further modernizes operations by authorizing digital financial services, insurance distribution, and agent-based channels while strictly prohibiting illegal microfinance activities and restricting politically exposed persons from governance roles.