Policy Note: A tiered approach to regulating intermediation

Formalizing microsavings

In virtually every country in the world, the existing supply of savings services falls short of the demand from low income populations. Poor people need more and better access to savings accounts. In some countries, there is a growing sector of unregulated microcredit organizations that are well positioned and motivated to offer those services, but are not yet licensed to do so. Regulators in these countries can enable microcredit organizations to integrate into the financial system as financial intermediaries with a tiered, risk-based approach to licensing, regulating and supervising savings-based microfinance.