Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 September 2012 Vol. 2(9), pp 429-438

Copyright © 2013 Global Advanced Research Journals   

 

Original Research Articles

The Impact of Regulation Policy on Product and Service Delivery of Micro-Financial Institutions:A Case of Zimbabwe 

Robert Nzaro1, Kosmas Njanike2, Eunice Jaravani

1Bindura University of Science Education. Department of Banking and Finance

2Bindura University of Science Education, Department of Banking and Finance

3Bindura University of Science and Education, Department of Banking and Finance

Corresponding author Email : kosmasnjanike@gmail.com 

Accepted 28 February 2013

 

Abstract

There has been very little research on the regulation and supervision of micro finances and their impact on product and service delivery. To date, much of the research has been limited to case studies of successful micro finances in Asia, Africa and Latin America. The studies have tended to focus on micro economic impacts and relationships between micro finances and their recipient credit clients. The study examines the overall impact of regulation and supervision on product and service delivery of microfinance sector. The analysis was done at two levels, that is, formal and informal MFIs. Descriptive research design was used on a sample size of 100 MFIs (60 formal and 40 informal MFIs).  Primary and secondary data collection techniques were used to obtain the data. The study found that non or lax regulation of the microfinance sector in Zimbabwe has a detrimental effect on product and service delivery development in the sector. The evidence also suggests that the costs of compliance are considerable and would outweigh any potential benefits that would be gained. The research findings imply that the stage of development of the microfinance sector needs to be taken into account in establishing the regulatory framework.  For regulations to be beneficial, they have to take industry structure into account, especially in relation to regulatory capital requirements, ownership and governance structure, size and lending methodologies. 

Keyword: Regulation, Micro Finance Institutions, Central Bank

Related Articles


Original Research Article
Ajibola Joseph Olusegun, Ishola Rufus Akintoye, Samuel Olajide Dada
Commercial Bank Credit and Sectoral Growth in Sub Saharan Africa Evidence from Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. September 2014 Vol: 3(9): - [Abstract] [Full Text - PDF] (133 KB)
Review
Abdullah Ali Abdullah Mohammed
Business Ethics In Takaful Industry Between Myth And Reality
Glo. Adv. Res. J. Manage. Bus. Stud. May 2015 Vol: 4(5): - [Abstract] [Full Text - PDF] (92 KB)
Original Research Articles
Anyanwu SO, Offor US, Adesope OM and Ibekwe UC
Structure and growth of the gross domestic product 1960 to 2008 implications for small scale enterprises in Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. June 2013 Vol: 2(6): - [Abstract] [Full Text - PDF] (100 KB)
Gamal KM Ali and Abdeen M Omer
The Impact of the pharmaceutical regulations on the quality of medicines on the Sudanese market: Importers’ perspective
Glo. Adv. Res. J. Manage. Bus. Stud. August 2012 Vol: 1(7): - [Abstract] [Full Text - PDF] (203 KB)
Ahmed YM and Oruonye ED
Ecological impact of artisanal and small scale mining in parts of Taraba state, Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. February 2016 Vol: 5(1): - [Abstract] [Full Text - PDF] (1,851 KB)
Ayat A Sayed, Sahar EM EL-Deek, Mona A EL-Baz, Dina Sabry, Aliaa Al-Rageaey, Aishaa Mansey, Fatma Y Meligy and Khaled Abdelaziz
Exosomes Derived from Bone Marrow Mesenchymal Stem Cells Restore Cisplatin Induced Ovarian Damage by Promoting Stem Cell Survival, Meiotic, and Apoptotic Markers
Glo. Adv. Res. J. Manage. Bus. Stud. June 2017 Vol: 6(6): - [Abstract] [Full Text - PDF] (5,455 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Robert Nzaro on Google Scholar
Robert Nzaro on Pubmed
Kosmas Njanike on Google Scholar
Kosmas Njanike on Pubmed
Eunice Jaravani on Google Scholar
Eunice Jaravani on Pubmed

Statistics

Viewed 1010
Printed 430
Downloaded 1339
Powered By iPortal Works