MicroFinanza Rating provides services to the regulators who aim at strengthening their capacity to ensure the stability of the financial system and oversee the financial institutions’ compliance to the regulation. MFR services are tailored to the specific needs of the regulatory and supervisory authorities and international best practices of client protection, risk management and responsible finance are used when applicable to the local context. The services MFR offers are:
Study on a financial sector’s performance, risks and opportunities in the areas of financial performance, risk management, as well as social performance and client protection, which include the responsible pricing and pricing transparency.
Training on the methodology for assessment of financial institutions and on the international best practices that are relevant for improving risk management, client protection, responsible finance and social performance.
Advisory services to improve the regulation based on best practices and gap analysis in the area of client protection, including transparent and fair pricing. MicroFinanza Rating can conduct a mapping of a country, specifically regarding existing regulation and comparing it to the international standards of client protection or social performance. Recommendations would be presented on ways to adapt the international standards to the country context, in order to develop additional norms based on the priorities of the regulator. MicroFinanza Rating also offers technical assistance to develop tools and processes for regulators to implement existing or newly introduced client protection regulations.
Third party opinion on the financial institutions’ performance, risk profile and compliance to the regulation. The national supervisory body can use the services of an international specialized rating agency to complement its efforts and identify the top risks to focus on. The supervision can be out-sourced in part by the supervisory body by requiring credit ratings, performance and risk ratings, social ratings, client protection certifications or other types of ratings or audits to a certain group of financial institutions. The reference for the assessment of compliance of financial institutions can be: national regulation or international industry standards (such as the SMART campaign client protection principles and the SPTF Universal Standards of Social Performance Management). To guarantee the quality of the supervision, the license given by the supervision entity of a limited number of rating agencies to which the supervision would be partly out-sourced is critical. The areas of analysis can be financial performance, risk management, client protection, responsible finance and social performance of financial institutions.
Read more on our guide dedicated to services for regulators.