The updated European Code of Good Conduct for Microcredit Provision has been published


The European Commission has updated the European Code of Good Conduct for Microcredit to reflect the changing market realities and capture the wide diversity of providers within the microfinance sector in Europe. It will enter into force on 1 January 2021.

What are the amendments?

The Code update is the result of a consultation in 2019 with key stakeholders, including practitioners, the European microfinance networks (EMN, MFC), banks, EU institutions and experts. The objective of the Code update was to fine-tune the existing clauses in the Code, where appropriate. Firstly, some parts of the Code were amended to better reflect evolving market realities, including best practices and more realistic expectations of providers. Secondly, amendments were required to ensure that the Code took into account the diversity of European microfinance institutions in terms of size, legal structures and national regulatory frameworks. The updated Code will enter fully into force on 1 January 2021.

Practical information for applicants 

However, microfinance institutions that submit a request for a Code evaluation from the date of the publication (30 June 2020) onwards will be evaluated on the basis of the updated Code, even if they had signed up to the previous version of the Code.

Microfinance institutions that have already submitted a Code evaluation request, but have not yet been evaluated, may choose to be evaluated either on the basis of the updated or the previous Code. Previously awarded certificates of compliance with the Code for microfinance institutions remain valid as indicated at the time of the award until their expiry.

Do you want to check if your institution is eligible?

It is very easy :

Use self-assessment tools available here to download


Read more: 

European Commission’s official announcement

Download the updated Code