When the need for regulating the MFIs was felt in early 2000s, a view was taken that MFIs are significantly different from other financial institutions – both in terms of institutional structure and product portfolio and needed to be regulated differently.
Each and every field will witness resources flowing to the most competitive enterprises. Once prices are found unmatched, they will be soon adjusted and risks will be dispersed, hence the entire system will be dynamic and elastic, capable of adjusting and stabilizing itself.