KAKUNGU, Ngela2025-08-222025https://research.unilus.ac.zm/handle/123456789/509Master of Business Administration and Finance - DissertationThe 2008 debacle in the global financial systems brought into focus the issues of proper regulation of the key players and sub-sectors in the financial markets, especially the MFIs. This research seeks to examine the effects that financial regulations have on MFIs, taking Micro Finance Zambia Limited as the subject of analysis. Basing the research on the tenets of micro- and macro-prudential regulation, the research demonstrates how regulation maintains the stability of the economy, protects the interests of stakeholders, and fosters sound financial practices, though at the cost of slowed financial activity. This paper also looked into other factors that define performance to assess their impact on the operations of MFIs, including market structure and liquidity. Using a descriptive research design, this study sought to establish the level of engagement of students in the study of the chosen subjects, with a 102-participant response representing a 98% response rate from participants who were given questionnaires. It is established that financial regulations play a major role in determining the performance of Micro Finance Zambia Limited through the way governance is structured, risk controlled, and the fostering of stability. Other factors that were established to influence financial status included the market structure and microfinance liquidity, which are affected by environmental characteristics such as corruption, legal origin, and economic policy, among others, hence complicating the achievement of microfinance regulation goals. The study concluded that Zambia’s financial regulations act as both constraints and resource factors to MFIs. Although compliance may adversely affect financial performance in the short run, it is anticipated to bolster institutionalization and long-term performance. It is suggested that MFI operations should be adjusted to financial regulations, market structures should be used to improve performance, and liquidity should be effectively managed to support growth. These measures are important in promoting the stability and efficiency of the microfinance sub-sector in supporting the parliamentary economic development objectives for Zambia.enThesis