Next, we set in place regulations that recognized and built on best practices; this included using group support or liability, cash flow-based lending, and providing for frequent amortizations . We also created an environment that allowed for new entrants into the market, particularly microfinance-oriented banks which are licensed as regular banks but dedicate at least 50% of their loan portfolio to microfinance.
BIS Review 135/2010  3  2.3  Where the system has fared less well: regulatory arbitrage and global imbalances  As much as global governance appears to have passed the severe test of the global financial crisis, we should not remain oblivious to the fact that there were significant shortcomings that have contributed to create the conditions for the crisis to happen in the first place.