This book considers microfinance from a legal perspective. The book describes the unique dimensions of microfinance and the difficulties which this can cause for regulators. The focus is on the European Union framework, with some references to some developing world experiences where relevant. The book assesses the impact and validity of current financial regulation principles and rules, in light of the most recent developments and trends in financial regulation and compares microfinance with traditional banking. The book puts forward policy recommendations for regulators and policy makers to help address the challenges and opportunities offered by microfinance.

Introduction and executive summary. Microfinance and its "dimensions" Part I. Description of Microfinance: a creature of chameleonic nature 1. New frontiers and objectives of financial regulation 2. Microcredit and Microfinance: general characteristics Part II. Analysis of Microfinance "Dimensions" from a regulatory point of view 3. Dimension I: Microfinance as multi-facets creature: the legal enigma and different levels of regulation 4. Dimension II: the social objective within the business structure and social effectiveness 5. Dimension III: economic sustainability/effectiveness 6. Dimension IV: Microfinance as an alternative to traditional banking with "peculiar" instruments. The fundamental problem of regulating microfinance 7. Dimension V: Microfinance as an innovative chameleon: the ability to take advantage of new technologies 8. Dimension VI: Microfinance as a responsible activity: client protection without curtailing access 9. Final Conclusions