Establishment of a centralization system of the sector’s risks

To better manage risks in the sector, including the risk of over-indebtedness, the MSA has the power to ask the MFIs to provide it with all statistics and information to feed The Microfinance Risk Central.

The purpose of The Microfinance Risk Central is the collection and dissemination of information and the verification of the solvency of future and current beneficiaries. The MFIs have the opportunity to expand their credit operations, reduce losses and strengthen their institutional stability.

The Microfinance Risk Central allows the MFIs to share information on the beneficiaries. It allows them to:

• Reduce the problems of adverse selection by reducing the asymmetry of information,
• Detect the risks of insolvency,
• Improve credit recovery.