This year’s Microfinance Banana Skins is aptly titled “Staying Relevant.” The fourth in the series, each year the Banana Skins report reflects not only the perceptions of industry actors but stands as a commentary on the evolution of the microfinance sector itself.
Some MFIs do have informed and knowledgeable board members who lead the institution and take decisions and actions to define the organization’s mission, establish policies, and determine control mechanisms to allocate power, establish decision making processes and set up procedures for performing specific tasks.
Corporate governance is becoming a topic of high interest among microfinance professionals. Many consider the lack of good corporate governance as one of the main challenges facing the sector in Latin America and the Caribbean.
Efforts to improve MFI governance are central to making our industry’s responsible finance movement robust in its practices – not just high-minded principles — and ensuring that it offers meaningful benefits to clients.