How can the over-indebtedness problem be avoided?
The issue of market saturation and overlending may be a logical consequence of increased supply or competition, but there are measures that need to be implemented at the national level by the regulatory body or by the MFI industry association to limit the damage. Since no single MFI can act unilaterally and change behaviour, the group needs to collaborate on common measures and shared information, and if possible, stimulated by a pro-active regulator who requires everyone to contribute client data to a common credit bureau.
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