What are the biggest legal and regulatory constraints to pro-poor savings mobilization?
Some regulatory policies undermine the viability of savings operations while others place services out of reach of rural and poor savers. Prohibitions against unsecured lending and interest rate caps on loans can make it impossible to invest savings at volumes and interest rates that cover costs. High reserve requirements also make it hard to generate sufficient revenues. High capital adequacy and some types of detailed reporting requirements make it difficult to establish small financial institutions such as rural banks or small credit unions that can serve rural areas.
