This choice is subject to an assessment of the auditor on whether it is financially viable for the bank to hold the asset until maturity. Moreover, a large portion of banks’ assets consists of held-to-maturity loans to firms and households. For these assets, market prices are not readily available.
Ladies and Gentlemen; the Microfinance Act was enacted in December 2006 to provide a level playing field and the appropriate legal, regulatory and supervisory framework for the microfinance industry.