The Regulation and Supervision of Micro Finance Institutions in Ethiopia: The Need to Balance Social Objectives with Financial Sustainability

Microfinance Institutions (MFIs) play an important role in providing access to finance developing countries. However, how effectively regulate MFIs remains one of the challenges that needs attention. The need for legal and financial innovation enable continue provide much-needed service society is apparent. One proposals use regulatory frameworks are closely related or similar those we banks. Ethiopia currently using laws many ways its banking Institutions. this approach not without limitations. Complex burdensome regulations greatly affect efficiency We be just commercial them fill gap created by existing system. more open small-scale borrowers, flexible credit packages give priority women vulnerable groups society. Therefore, a regime considers these special traits provides required support institutions sustainable viable market. This article examines Ethiopia, outlines limitations suggestions make it efficient.