“Corporate governance in Microfinance Institutions” by the IFC

Published in June 2015

This document, published in June by IFC, highlights the importance for Microfinance Institutions (MFIs) of a solid corporate governance system, given their growth in recent years and the increase in their scope and range of activities.

After an introductory chapter about the microfinance industry, how it has developed and the type of institutions involved, the document looks at how good corporate governance impacts MFIs and their corporate structure. It tackles the crucial role of the Board of Directors and their supporting bodies in managing risk.

It then dedicates a chapter to analysing the external factors influencing the corporate governance of MFIs and their day-today management. It concludes with a review of the responses from governments, investors and the microfinance industry to changes in the area of corporate governance, as applicable to microfinance institutions; and then makes proposals for the next steps that need to be taken in order to make good practice more widespread in the microfinance industry.