The European Commission (EC), the executive body of the European Union (EU), has recently published the “European Code of Good Conduct for Microcredit Provision” that provides guidelines and standards to microcredit stakeholders in the EU to support the sector in “facing the challenges of accessing long-term finance, maintaining and raising the quality of services and moving towards sustainability” [1] [2].
The code is divided into the following five sections: (1) customer and investor relations, including the obligations of microcredit providers to customers and investors; (2) governance standards for the management and the boards of directors of microcredit providers; (3) risk management; (4) reporting standards; and (5) management information systems. A sixth section on social performance, covering ethical and social aspects, reportedly is scheduled to be added to the document in 2012.
To view the code in detail you may visit: http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=6978
By Nisha Koul, Research Associate
About European Commission: The European Commission (EC), founded in 1951, is the executive body of the European Union (EU). It is responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and the day-to-day running of the Union. EC has its headquarters in Belgium and offices in Luxembourg as well as offices known as “representations” in all EU countries.
Sources and Additional Resources:
[1] European Commission News, “European Code of Good Conduct for Microcredit Provision,” http://ec.europa.eu/enterprise/newsroom/cf/itemlongdetail.cfm?item_id=5479&lang=en&tpa_id=127
[2] European Commission Document, “European Code of Good Conduct for Microcredit Provision,” http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=6978
MicroCapital.org story, November 1, 2011, “MICROCAPITAL BRIEF: Fairkampaign Calls for Comments on “Contents of a Fair Microfinance Loan Agreement,”” https://www.microcapital.org/microcapital-brief-fairkampaign-calls-for-comments-on-%e2%80%9ccontents-of-a-fair-microfinance-loan-agreement%e2%80%9d/
MicroCapital.org story, August 17, 2011, “MICROCAPITAL BRIEF: Smart Campaign Revises “Client Protection Principles” for Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-brief-smart-campaign-revises-%e2%80%9cclient-protection-principles%e2%80%9d-for-microfinance-institutions-mfis/
MicroCapital.org story, April 5, 2011,”MICROCAPITAL BRIEF: Fundacion Microfinanzas BBVA Launches Spanish-Language “Universal Code for Corporate Governance”, “Guide to Adopting Good Governance Principles” Targeted at Latin American Microfinance Sector,” https://www.microcapital.org/microcapital-brief-fundacion-microfinanzas-bbva-launches-spanish-language-%e2%80%9cuniversal-code-for-corporate-governance%e2%80%9d-%e2%80%9cguide-to-adopting-good-governance-principles%e2%80%9d-tar/
MicroCapital Universe Profile: European Commission, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Commission+%28EC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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