Financial Cooperatives : Issues in Regulation, Supervision, and Institutional Strengthening
Financial Cooperatives (FCs) are important providers of financial services to poor and middle-income people, and significant drivers of financial inclusion. Aside from their strong presence and relevance in developed economies, especially Europe an...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/156561539766530807/Financial-Cooperatives-Issues-in-Regulation-Supervision-and-Institutional-Strengthening http://hdl.handle.net/10986/30916 |
| Summary: | Financial Cooperatives (FCs) are
important providers of financial services to poor and
middle-income people, and significant drivers of financial
inclusion. Aside from their strong presence and relevance in
developed economies, especially Europe and North America,
the significance of financial cooperatives in terms of
financial inclusion in the developing world cannot be
underestimated. Their pervasive presence in rural areas, and
their potential to expand financial inclusion with multiple
services to under-served segments make enabling the
sustainable functioning of FCs a sensible policy objective.
This paper reviews current knowledge about, and recent
examples of FC development practice that generate lessons
deemed valuable and useable in diverse contexts. The review
provides background for an informed discussion around the
following propositions: 1) Legal and regulatory frameworks
for FCs adapted to the organizational nature and
institutional structure of local FC entities; 2) Adequate
legal and regulatory frameworks including appropriate safety
nets following the development of the local FC market
segment; and 3) Integrated approaches that combine legal and
regulatory reforms with support to the institutional
strengthening of the FC sector. |
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