Governance encompasses the operational and financial sustainability of a microfinance institution involving all stakeholders (employees, managers, clients, financial partners, shareholders, donors and government agencies, etc.). It relates to an institution’s internal operating and control procedures, and incorporates a strategic vision and structure of the institution that is transparent, efficient and acceptable to all stakeholders. As a system of checks and balances, a board of directors is established to manage the managers, and management is involved in day-to-day operations of putting the institution’s vision into action.
The Practice of Corporate Governance in Microfinance Institutions. (2012). Council of Microfinance Equity Funds issued new guidelines for MFIs.
Subsidies and financial performances of the microfinance institutions: Does management matter? (management and governance issues in microfinance).
Effective Governance: A Guide for Microfinance Associations (English), en espanol , en francais