Tuesday, March 19, 2013

[MFP] CGAP Newsflash: Regulatory Options to Curb Debt Stress

 

 


CGAP Newsflash: Regulatory Options to Curb Debt Stress

The right package of regulations can rein in reckless lending while allowing development of healthy credit markets that extend access to underserved households and very small businesses, according to a report published by CGAP today. The report  Regulatory Options to Curb Debt Stress offers a policy framework for preventing and managing debt stress, which occurs when individual households or whole market segments become over-indebted.

The report argues that it is preferable to implement appropriate monitoring mechanisms and regulatory interventions at an early stage in credit market development, to detect potential debt stress and prevent reckless lending practices, thereby avoiding risks to financial markets, consumers, and the regulator's credibility.

Download the full report and read the press release at CGAP.org.

CGAP



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