More commonly, however, those who want to encourage micro-entrepreneurship have to work on a variety of supporting actions other than just credit, especially skilling. Fortunately, in India we have a flourishing NGO movement that often works with the government to provide the necessary support – as in the Jivika rural livelihoods program in Bihar.
In particular, criticism was raised against the new capital requirements (increased minimum capital ratios, introduction of capital conservation and counter-cyclical buffers as well as a capital surcharge for Systemically Important Financial Institutions – SIFIs), arguing that this will increase costs for banks, reduce profitability, lead to credit supply restrictions, shrink the banking sector and, ultimately, hurt the economy (IIF, 2010).