Conference "Improving the regulatory environment for micro-credit"

The European Commission together with the European Economic and Social Committee organises in Brussels on 2 December 2011 a conference on "Improving the regulatory environment for micro-credit".

The objective of the conference is to better appreciate what obstacles microcredit financiers face in their trade, and what might to be done at national level, and possibly European level, to improve their regulatory framework. The idea is to foster an exchange between microcredit providers and public authorities. The latter are expected to learn from each other: reforms have been implemented in some Member States to boost microcredit as a tool to fight poverty and contribute to employment. However, this is not the case in all Member States. There is scope for exchanges of best practices (if not benchmarking).

The conference will be structured along 3 panels:

• Panel 1 "Establishing and financing microcredit entities" would focus on who provides microcredit - banks, credit unions, public entities, other micor-credit providers. It should consider whether microcredit providers should have a specific statute or should be considered as banks. The panel should also examine the different means for financing the provision of microcredit - savings, capital markets, government funding, etc. This panel will be moderated by Mrs Maria Nowak, Chairman of ADIE International.

• Panel 2 "Ensuring and appropriate prudential framework for microcredit providers: level playing field vs. Proportionality" should consider the prudential and supervisory issues surrounding microcredit. Including should there be minimum capital requirements, capital adequacy regime, limits on unsecured lending, loan documentation and reporting and risk management. Should prudential and supervisory requirements differ for microcredit providers and if yes, how can this be ensured while ensuring a level playing field and taking into account proportionality? This panel will be moderated by M Mario Nava, Acting Director, DG Internal Market and Services.

• Panel 3 "Ensuring responsible microcredit" should consider the conduct of business framework for microcredit lending. Should there be a clear framework for conduct of business for microcredit? Is a differentiated approach necessary? Issues to be considered: interest rate restrictions/usury rules; access to databases; unfair commercial practices.

When: 2 December 2011

Where: Brussels, Belgium