Development finance | Financial services | Microfinance | Technology
In the debate on access to credit, the interest rate often occupies a central place. The logic appears straightforward: if credit becomes cheaper, more individuals and businesses will be able to access it. In Bolivia, this view has directly influenced the design of the financial regulatory framework, particularly since the enactment of Financial Services Law…
Interest rate regulation has been applied as a public policy tool aimed at reducing the cost of credit and channeling resources toward strategic sectors. However, international evidence shows that this type of intervention often produces ambiguous outcomes and, in many cases, effects contrary to the intended objectives, particularly in the microfinance sector (Helms & Reille,…