Insufficiencies and loopholes of self- regulation in overindebtedness prevention: the case of the Dominican Republic

Joana Da Silva Afonso, S. Morvant-Roux, D. Forcella, I. Guérin

    Research output: Working paper


    The Dominican Republic’s microfinance sector is considered to be a growing and
    solid market. However, the widely implemented overindebtedness prevention
    best practices are by themselves not sufficient to prevent financial fragility
    among a part of the MFIs’ clients.

    We identify these practices as self-regulation mechanisms and, based on
    fieldwork conducted between 2012 and 2015, we show how they fail to fully fulfil
    their goals in the Dominican market. While financial exclusion supports the idea
    of an unlimited microcredit market, we argue that the focus on growth
    imperatives and high competition strongly jeopardize the positive outcomes of
    microcredit on clients’ well-being.
    Original languageEnglish
    PublisherUniversité Libre de Bruxelles
    Publication statusPublished - 8 Feb 2016

    Publication series

    NameCEB Working Paper


    • microfinance
    • overindebtedness prevention
    • financial practices
    • self- regulation
    • Dominican Republic

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