CMF Nepal engages with government agencies, donors, MFIs, and other regulatory bodies to create a supportive environment for the microfinance industry. CMF’s role is to influence microfinance policy decisions by representing the perspectives and collective voice of its stakeholders in the microfinance sector. This work relies on two of CMF's other thematic areas, research and networking, to create policy recommendations based on the most up-to-date information and the diverse needs of banks, cooperatives, NGOs, and microfinance clients across the country. 

Our policy advocacy acts in two ways in the microfinance sector; firstly to guide monetary and fiscal policy handed down by the Nepal Rastra Bank and the Nepalese government, and secondly to help MFIs themselves to develop effective codes of conduct for their own operations. In the past, CMF has advised Nepal's monetary policy as well as various legislation on remittances and microfinance, and frequently works with MFIs to create ethical standards for microfinance operations. 

The largest contribution to this thematic area comes from the biennial Microfinance Summit of Nepal, an industry-wide conference chaired by CMF Nepal that culminates in a set of policy recommendations drafted as a result of several days of discussion and debate between hundreds of microfinance stakeholders. This event brings microfinance to the forefront of the national government's agenda and serves as an excellent opportunity for those most invested in and affected by microfinance to have their voices heard