This law regulates the registration, administration of risk, information management and closing procedures of microfinance institutions. It establishes that microfinance entities shall be constituted as anonymous societies. Their initial capital will be divided and issued through member shares.
To establish a microfinance institution, an application shall be submitted to the Banking Regulator. The Banking Regulator will then forward this application to the Monetary Council, which will approve or deny the application. All micro finance entities shall initiate operations within a span of six months after the council has approved the application. This timeline can only be extended once.
Savings and credit micro finance institutions must have an initial authorized capital of USD 5 million, whereas credit and investments micro finance institutions will require USD 1.8 million.