ABSTRACT
An institutional approach to microfinance also implies some form of organised professionalism, like membership in representative associations, adherence to a commonly accepted set of good practices on client protection and compliance with rules that licence, supervise and regulate financial intermediaries. Microfinance is a global phenomenon, with microfinance institutions operating in every region of the world, however, mostly in Africa, Asia and Latin America. There are four main types of microfinance institutions: NGOs, financial cooperatives, non-bank financial institutions and microfinance banks. Each type combines financial and social goals in a distinct manner. Microfinance markets are in constant flux: some institutions grow, others flounder and disappear, and many change their business model and approach over time in response to competition and changes in legal form and ownership. Transformation of a microfinance institution means that it adopts a different legal and regulatory status.
