Obviously, these include credit, market, and operational risk, but also encompass certain other risk types--such as liquidity, interest rate, strategic, and legal risks. These “other” risks might indeed be the most relevant ones for certain institutions.
Microfinance institutions (MFIs) form a different tier of financial institutions that play an active part, through the informal and semi-formal sectors, in savings mobilization and the development of the financial system. These financial institutions that serve the disadvantaged majority equally require the Central Bank’s supervision and some involvement in enhancing their growth.