As I’ve discussed before, there are limitations to the use of simple rules, and no central bank can be constrained by one simple rule in all circumstances. Rules are basically intended to work well on average, but any central bank looks at many variables in determining policy. There will be times when policy must deviate from a reaction function or policy rule.
We are also interested in working with other microfinance practitioners and organizations, such as NGOs and credit cooperatives, so that together we can ensure the long-term viability and sustainability of microfinance. Possible areas for collaboration include the transformation of non-bank MFIs into banks, development of a uniform set of standards, and the promotion of best practices for sustainable operations within banks, NGOs and cooperatives.