Journal of Emerging Trends in Economics and Management Sciences: Home

Abstract:
In the Trinidad & Tobago (T&T) microfinance is limited to the provision of microcredit services to small and micro enterprises (SMEs). The microfinance sector exists on a limited scale with microfinance institutions (MFIs) unable to attain financial sustainability and wide outreach. Growth in the microfinance sector requires an expansion in the range of MFIs? products and services. To enable this transformation supporting regulation governing the industry is necessary. In this paper, global approaches to microfinance regulation were critically studied in order to formulate policy recommendations for the enhancement of microfinance regulation in T&T. The paper seeks to emphasize the need for an appropriate regulatory framework; to support the stable expansion of the country?s microfinance industry, to protect the potentially vulnerable client base and to enable the industry to deliver on the social and economic benefits promised. The findings of this study can aid in policy formulation to transform this country?s lagging microfinance sector by introducing enabling regulation that can grow the sector from its static embryonic stage of development.

Keywords: microcredit, microfinance, microfinance institution (MFI), regulation, small and micro enterprise (SME), Trinidad & Tobago

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