A critical appraisal of the legal challenges and opportunities associated with microcredit

Abstract

This dissertation analyses the regulation of the provision of microcredit by non-bank microfinance institutions at European Union level, focusing on the applicability of European and domestic legislation and the potential risks and opportunities inherent in such regulatory environment. To this end, this dissertation analyses the current regulatory framework for the provision of microcredit at European level, and examines the relevance of current EU initiatives such as Jasmine, EaSI, and ESF+. In this regard, a major regulatory gap is identified which leaves the regulation of microcredit principally within the remit of Member States, thereby creating a highly fragmented regulatory environment. This dissertation thus analyses the regulation of microcredit by a number of Member States to gain a better understanding of the current regulatory risks. Furthermore, this dissertation explores potential regulatory changes which may be implemented to harness the opportunity which lies in the creation of a single market in microcredit. This dissertation concludes by briefly analysing technological advancements which pose serious risk in the absence of a robust regulatory framework in microcredit, and provides solutions based on legislative intervention.