In the US right now we are having a heated debate over who bears the burden of responsibility for the reckless loans that are now crippling our credit system. Is it the borrowers who should not have taken out loans larger than they could afford to repay? Or, is it the lenders who failed to properly vet borrowers?

Concern about overlending and other borrowing pitfalls is obviously on the mind of those attending the Clinton Global Initiative. In response a broad consortium of microfinance organizations have signed onto the Campaign for Client Protection in Microfinance. Accion, one of the signatories, describes the campaign:

Designed to maintain and extend the microfinance industry’s dedication to the welfare of its clients in a period of rapid growth, the campaign will promote a Microbanker’s Oath, akin to the Hippocratic Oath, articulating six core principles:

• Avoidance of reckless lending that creates over-indebtedness
• Transparent and fair pricing
• Collections practices that are not abusive or coercive
• Ethical standards for staff
• Recourse mechanisms for client problems
• Privacy of client data

For more information, check out: www.centerforfinancialinclusion.org