Featured Essay: MONGOLIA

Analysis of regulatory successes and failures, with recommendations for improving the performance of the microfinance sector in Mongolia.

In this essay, , Ms. Nyamaa Togtokhbariul discusses the regulation, supervision, and state of microfinance in Mongolia. After an introduction highlighting the success that Mongolia has achieved in increasing access to finance, the author discusses the current regulatory and supervisory framework. Ms. Nyamaa then analyzes both current successes and historical failures in the microfinance sector.

Finally, the author concludes with some recommendations for continuing to improve the performance of the microfinance sector. These recommendations include:

* Diversification of financial services for the poor;
* Support for access of the poorest of the poor through innovations and new legal forms;
* Analysis of fiscal incentives, legal reform, promotion, and education for savings;
* The overall protection and education of all consumers of financial services; and
* The creation of legal forms for second-tier support institutions.

About the Essays: The Essays on Regulation and Supervision series seeks to complement the country profiles by providing additional insights and perspectives on the experiences of lawyers, microfinance institutions, regulators, donors, and other microfinance stakeholders regarding specific microfinance legal and regulatory environments. A complete list of essays is available here.