01944cas a2200241 a 4500 AALejournalIMF016464 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513598420 1018-5941 BD-DhAAL BD-DhAAL Heng, Dyna. Impact of the New Financial Services Law in Bolivia on Financial Stability and Inclusion / Dyna Heng. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (31 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the impact of the new financial services law in Bolivia-including credit quotas and interest rate caps-on financial stability and inclusion. So far, credit to 'targeted' sectors is growing as intended by the law but the increase in the average loan size of microfinance institutions and the declining number of borrowers point to potentially adverse effects of the interest rate caps on financial inclusion. Looking ahead, while the new law contains many good provisions, international experience suggests that promoting financial access through credit quota and interet rate caps is very challenging. Indeed, trying to meet the 2018 credit target for the productive sectors and social housing could imply the build up of significant financial stability risks. These will need careful monitoring and possible modifications to the credit quotas and interest rate caps. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2015/267 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/267/001.2015.issue-267-en.xml IMF e-Library