Regulatory Framework for Microfinance Operations in Bolivia

Publication Date: 2003
Published by: ASOFIN - Association of Financial Entities Specialized in Microfinance
Document Type: Paper

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The legal context for microfinance operations in Bolivia.

This paper presents the legal framework under which regulated microfinance organizations operate in Bolivia. The paper states that the most important regulations pertaining to microfinance operations are:

• Supreme Decree 24000, of May 1995 authorizing the creation of Private Financial Funds (FFPs);
• Amendment of December 20, 2002 in the law on Banking and Financial Institutions.

These laws provide for the creation of FFPs and also indicate the assets and liabilities operations that the FFPs can develop and the services that they can provide.The paper also presents some of the other standards issued by the Superintendence of Banks and Financial Institutions (SBEF), with regard to:

• Reporting outstanding loan portfolio;
• Provisioning standards based on age of portfolio;
• Opening agencies, branches and mobile services;
• Correspondent contracts and credit information bureaus;
• Transparency, governance and internal control.