ABSTRACT
The Basel Committee on Banking Supervision (BCBS) reports that in 2010 59" of respondent countries had some sort of definition of microfinance/microcredit. Portugal has recently adopted a specific regulation about microcredit financial corporations authorized to provide financing up to €25,000 to small business or professional projects capable of maintaining sustainable jobs and facing difficulties in obtaining credit from mainstream operators. Regulation also entails costs, directly affecting operators, public authorities and customers. Microfinance has also been seen as a tool for poverty eradication and economic development, involving international organizations (IOs) devoted to such missions. Considering the recognized link between finance, financial regulation and growth, developing countries (DCs) have often used financial regulation reforms to show their commitment to investors and IFIs. The European microfinance institutions (MFIs) Code, containing also social-performance indicators and Client Protection Principles (CPPs), can contribute to this goal under the condition of improving its enforcement mechanisms.
