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Authors

Laura Raheb

Abstract

(Excerpt)

Part II of this note will provide a comprehensive explanation of the history, success and current state of microfinance abroad and the current state of microfinance in the United States. Part III will analyze why U.S. microfinance has not reached the same level of efficiency as its international counterparts. Finally, Part IV proposes the most promising solution: a proposal to Congress for regulatory reform to set the stage for the development and growth of microfinance in the United States. This unique system, when created abroad, will no longer be expected to fit in the regulatory system that the U.S. has long created for traditional banks. By creating a regulatory system solely dedicated to microfinance, microfinance has an opportunity to grow as a stable financial structure. As a result, this new system of banking will finally thrive in the United States, ultimately providing economic opportunities for those in need.

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