the research is the microcredit sector of the Republic of Srpska. The following scientific research methods were used in the research: deductive method, analysis method and comparison method. The aim of the research is to analyze the condition of the microcredit sec-tor of the Republic of Srpska, based on data available in the reports of the Banking Agency of the Republic of Srpska, as the supervisory body of the banking system of the Republic of Srpska, and to consider the best international practice and experience and the possibility of adapting these solutions in regulating the microcredit sector. The results of the analysis indicate that in the last five years in the microcredit sector of the Republic of Srpska there has been an increase in the number of microcredit organizations, total assets gross, capital and obligations per loans and borrowings taken, and an increase in total disbursed microcredits. Compared to the banking sector, this sector has a lower share of non-performing loans in total loans, but average effective interest rates are higher. Given the developments in the microcredit sector, and that nine years have passed since the amendments to the law governing the establishment and operation of microcredit organizations, the possibilities of revising the normative basis of the microcredit sector should be considered.