WP
2012–10
Incentives, Supervision and Regulation of Microfinance Institutions in the developing countries
Founanou M. & Ratsimalahelo Z.
MPRA Paper No 41428
We analyze the optimal regulation of a MFI that has private information on the intrinsic quality of its loan portfolio (adverse selection) and where the MFI’s choice of effort to improve this quality cannot be observed by the regulator (moral …