Global microscope on the microfinance business environment 2010 Microfinance country profiles
natural disasters and other shocks. How these priorities are addressed, and what level of funding commitments they receive from donors, will be decisive in determining the recovery role of MFIs and the sustainability of these institutions.
Honduras Key characteristics of the microfinance business environment: l The regulatory framework for microfinance is partially developed, and includes a definition of the activity and one type of specialised institution. Pathways to upgrade into specialised or regulated institutional forms are still underdeveloped. l There is a fairly broad range of institutional types in the microfinance sector, both among regulated institutions and across the regulated/non-regulated divide. l There is ample room for improvement in the governance, accounting, and transparency standards of microfinance institutions. Key changes and impacts since last year: l In the context of a change of government and a contested interim government, there were few major changes in microfinance regulation. l A manual for microfinance supervision was prepared under the previous government, and could be a step forward. But turnover among technical staff following the recent political conflict makes implementation uncertain. l Organismos Privados de Desarrollo Financiero (OPDFs, private financial development organisations) are non-bank financial institutions that were created as regulated microfinance vehicles, particularly intended for upscaling non-governmental organisations. Not as many have been created as was initially hoped, however. As of November 2009 there were five OPDFs, three of which began operations in 2008.
Jamaica Key characteristics of the microfinance business environment: l There is no clear microfinance regulatory framework. The Bank of Jamaica (the central bank) has little supervisory capacity, and very few institutions operate in the sector. l A small number of non-regulated non-governmental organisations comprise the bulk of the sector, along with credit unions, which have only recently come under regulatory scrutiny. l Standards of transparency and governance among institutions active in microfinance are poor. Key changes and impacts since last year: l Jamaica’s first regulated credit unions will reportedly begin operation by the third quarter of 2010, although enabling legislation is still not in place. 41
© Economist Intelligence Unit Limited 2010