Regulation & Supervision

DGA has worked in over 50 countries to review the legal/regulatory environment for financial cooperatives and MFIs. Working with industry and policy makers we help translate a policy framework into practical solutions for safe financial institutions. Examples of our work include:

Growth of the Microfinance Sector of Myanmar. Asian Development Bank: 2014 - 2020. We've been the lead consultant to the Financial Regulatory Department to liberalize the MFI sector which has been followed by 80% growth per year. This has included drafting regulations, a revised law for MFI, risk-based supervision framework, off-site monitoring of the sector and recovery from the the economic fallout of COVID-19.
Using Supervisor Technology to revise Microfinance Supervision in Palestine. European Union. 2019-20.
Leading a team of consultants to aid the Palestine Monetary Authority in its approach to microfinance supervision and the usage of SupTech to improve banking and MFI supervision.
Launching a new Regulatory Authority in Uganda for SACCOs and MFIs. World Bank. 2016- 2019.
Developed the regulatory framework for thousands of savings and credit co-operatives, MFIs and moneylenders under new legislation for the sector. Led a team of local and regional consultants to help the Ministry of Finance in launch the Uganda Microfinance Regulatory Authority (UMRA) including its board and staffing structure, policies and staff training.
Implementing Risk Based Supervision in Kenya. World Bank: June 2017 - Sept 2018. We helped the SACCO Societies Regulatory Authority (SASRA) to develop a strategic supervisory policy framework and a risk-based supervisory process. This included revising its on and off-site supervision manual, process and forms, training staff on the new process and tools, recommending changes to the legal and regulatory framework and adjusting the organizational structure of SASRA. We also developed IT system requirements to aid SASRA in the acquisition of a new SupTech application.
Training Credit Union Supervisors in the Eastern Caribbean States. World Bank: Nov. 2012 - August 2013. Under a program administered by the Eastern Caribbean Central Bank developed an examination manual, software to automate report from credit unions, classroom training and on the job training of credit union supervisors. Led international teams of supervisors to conduct four cross jurisdictional examinations of some of the most systemically important credit unions (relatively to their national economies) in the world.
Development of Risk-Based Supervisory Program in Rwanda. World Bank: Nov. 2011- Aug. 2012. On-behalf of the World Bank, led training and development of a risk-based supervisory system for the National Bank of Rwanda. For the fastest growing financial cooperative system in the world we helped the central bank develop a of risk-based on-site and off-site inspection process and manuals, developed and conducted a training program for 60 supervisors, developed a CAMELs ratings and ranking system and a uniform, credit policy for the sector.
Assessment of the Financial Services Commission (FSC), Barbados. IMF: Jul – Aug. 2012. To prepare the Financial Service Commission of Barbados for a forthcoming Financial Sector Assessment Program (FSAP) review, we conducted an on-site review in late July/early August of the FSC’s credit union supervisory processes and systems. Recommendations for improvement and alignment with global best practices for credit union supervisory practices were developed.

Assessment of Credit Unions & Building Societies. IMF/World Bank: Feb - Mar. 2012. On behalf of the International Monetary Fund and World Bank, we conducted a financial review of the largest credit unions in the Organization of Eastern Caribbean States. Credit unions in this region are the most systemically important in the world with deposits ranging from 4% to 28% of domestic GDP per country. Recommended actions for insolvent institutions and legislation changes were include in the final report and presented to the Governor of the Eastern Caribbean Central Bank.
Supervisor Training, Joint Inspection, Off-Site Manual for St. Kitts & Nevis. IMF: June 2012. To aid the Financial Services Regulation Commission with its newly mandated responsibility of credit union supervision, a customized training program and a joint examination was conducted for the largest credit unions in the country. A risk-based off-site supervision manual was developed for the country that is integrated with common prudential reporting forms.

Supervisory Training, Joint Inspection & On-site Manual for Belize. IMF: Nov. 2011. For the Central Bank of Belize, we conducted a review of the credit union supervision process with the goal of strengthening it. Since 2005 the Central Bank has been responsible for supervising the nation’s 13 credit unions. Two limited-scope examinations were conducted of large credit unions, an assessment of the financial health of all credit unions was completed and a risk-based examination manual was developed for Belize and shared within the region. Recommendations for action were provided to the Governor of the Central Bank.
Legislative Development. Author of the Model Law for Credit Unions and Editor and co-author of the Model Regulations for Credit Unions. A member of the International Cooperative Alliance’s Cooperative Legislative Expert Committee. Author of Malawi’s and Lesotho's Financial Cooperatives Acts. Authored and delivered testimonies before the U.S. House and Senate.
Consumer Protection Diagnostic of Rwanda: July - August 2013. Served as the microfinance lead expert for the World Bank's assessment of the financial consumer protection environment in Rwanda. It included detailed legislative and regulatory reviews, meeting with consumer groups, policy makers, urban and rural financial institutions and presenting the findings and recommendations to the central bank Governor.
International Credit Union Consumer Protection Principles. Developed the International Credit Union Consumer Protection Principles and facilitated the assessment of credit unions in Mexico, Philippines and Kenya against them. This work aided the development of the SMART Campaign where Dave Grace serves on the Steering Committee.

dgrace@icurn.org

REGULATION & SUPERVISION ♦ FINANCIAL INCLUSION POLICY ♦ DEVELOPMENT