FOREWORD

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The Asian Productivity Organization (APO) has been at the forefront of efforts to raise productivity and competitiveness in the Asian region. Through various mechanisms such as the publication of technical studies prepared by experts and the organization of regionwide conferences, workshops, and other fora, the APO has contributed in no small measure to the progress being made by its member countries and their stakeholders to achieve higher productivity and greater competitiveness.

Microfinance has been recognized as a key instrument in economic growth and poverty reduction. Worldwide experience has shown that it gives microentrepreneurs access to financial services, basically loans and deposit facilities, that they have failed to obtain from traditional banking systems. It is important that regulatory frameworks contribute to the stability of microfinance institutions and the protection of depositors, especially the millions of household depositors. Appropriate regulatory frameworks will contribute to the productivity and competitiveness of microfinance institutions and provide the necessary safeguards.

Keeping the above background in view, the APO conducted a survey in November 2003 to study the legal and regulatory framework for microfinance prevailing among selected member countries. This publication highlights the results of the survey in nine countries: Bangladesh, Japan, Lao PDR, Malaysia, Nepal, Pakistan, Philippines, Sri Lanka, and Vietnam. The papers included in this volume were written by the national experts selected from the above member countries. The individual papers and the integrated report discuss the emerging structures for microfinance in Asia to assist policymakers in developing appropriate regulatory regimes. The topic chosen for this volume, “Regulatory Architecture for Microfinance in Asia,” is both timely and critical.

We hope that the publication will provide useful information to all those who are directly or indirectly involved in efforts to address the issues of microfinance.

The APO would like to thank the individual national experts and the chief survey expert, Dr. Gilberto M. Llanto of the Philippine Institute for Development Studies, for participating in the survey and making this volume possible.

Shigeo Takenaka
Secretary-General
Tokyo, January 2006