Regulatory Alerts2017-01-31
Added · Updated
Instruction No. 001/2017-CSBF on the Operations of Microfinance Institutions (MFIs)
This instruction defines the authorized operations for Microfinance Institutions (MFIs) based on their classification level (1, 2, or 3), legal form, and mutualist status. It establishes specific limits for lending, savings, and ancillary services, such as restricting MFI 1s to short-term credits capped at 6,000,000 ariary per individual and limiting their membership to 1,500. Higher-tier MFIs (2 and 3) are permitted longer-term lending and public deposits under certain conditions, while all entities must adhere to prudential ratios and reporting requirements. The instruction repeals the previous 2007 directive and takes effect upon notification to the professional association.