Abstract: “Private investments for Microfinance are a major fuel for its growth. Inadvertently, the role of the MFI regulatory body in inducing private investments remains a conspicuous issue. The paper aims to provide basic building blocks for a framework based on a continuous spectrum of light and heavy regulatory laws that can attract optimal levels of private investment, for both non-profit and for-profit MFIs.”

Keywords: Government regulation of MFI, Commercialinvestors in microfinance, MFI.