Microfinance sector development
Corporate Governance
The lack of good corporate governance is one of the main challenges facing the microfinance sector in Latin America and the Caribbean. Corporate governance is related to the internal means used to operated and control the institutions. Therefore, it plays a key role in creating transparency and trust for investors and in attracting capital.
Good corporate governance contributes to an efficient management and to take into consideration the demands of several groups of interests. This way we give a boost to the microfinance institution's reputation and integrity, and we also strengthen the client’s trust.
As the Foundation is aware of this challenge, it has prepared a “Universal Corporate Governance Code for Microfinance Institutions” according to the most universally accepted standards, as well as a “Guide to adopt good governance principles”, documents at the microfinance sector’s disposal by the Foundation. In order to spread and promote its adoption, the BBVA Microfinance Foundation is carrying out “Workshops in Corporate Governance for MFIs” aimed at board members of microfinance entities.
Since it was set in motion, the Foundation has trained more than 200 board members from microfinance entities in corporate governance.
