Download or read book Does Corporate Governance Impact the Financial Performance of Microfinance Institutions MFIs A Case Study in Sri Lanka written by Sujani Thrikawala and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the relationship between corporate governance and financial performance of Sri Lankan Microfinance Institutions (MFIs). The OLS regression, fixed effect and random effect models are used to analysis an unbalanced panel data comprising 300 firm-year observations over the period 2007 to 2012. We fine that financial performance of Sri Lankan MFIs improves when MFIs have female CEO, female chair, CEO/chairman duality, independent directors and client representation on the board rather than donor directors on the board. The financial performance may reduce with the higher number of female director representation. We also find no significant relation between international directors on the board, internal audit and firm performance of MFIs in Sri Lanka. This research provides insight for the policy-makers regarding corporate governance in Sri Lankan MFIs.

Download or read book Role of Governance in Microfinance Sustainability written by Md Nazim Uddin and published by Springer Nature. This book was released on with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Impacts of Micro Finance Institutions written by Rathiranee Yogendrarajah and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance in Sri Lanka has a long history and Microfinance institutions (MFIs) are established in all forms and dimensions and it can differ in size, practice, legal act, strategy and budget. The reliability is important to the microfinance system and it determines how smoothly an MFI operates. MFIs provide financial and non financial services to local individuals and groups and it's aim to promote economic activity among low-income earners, for whom access to formal banking services is impossible due to long procedures, collateral and distance. This study investigates the impacts of MFIs on cultural, economic, social and political spheres at local, regional and national level. The research designs both combining quantitative and qualitative tools are used. For this purpose, the secondary data which have been derived from Reports, documents and research papers of NGOs, INGOs, government departments and MFIs. In addition to this, the primary data was gathered through the questionnaire, interviews and observations. For this purpose, however, Northern Province was selected to collect data, the rural areas of Allarai, Ketpali, Navatkadu from Thenmaradchchi DS divisions and Moolai, Tholpuram from Valikamam divisions in Jaffna were selected to collect the data. The concepts of MFIs such as Governance, clients, operations and products have been explained and challenges or issues facing MFIs were taken into account for the investigation of the MFIs in Sri Lanka. Further, it was concluded that there is no significant differences between the variables.

Download or read book Corporate Governance Performance Relationship in Microfinance Institutions MFIs written by Sujani Thrikawala and published by . This book was released on 2014 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: The relationship between governance and the performance of Microfinance Institutions (MFIs) is discussed in this paper. MFI performance encompasses both financial performance and outreach. Good governance in terms of strengthening stewardship, achievement of MFIs' primary objectives and promoting further development of the industry have been asserted as key elements of the literature pertaining to MFI performance. Similarly, several cases concerning poor governance have been analysed. Good corporate governance has been noted as even more important due to the demand for transparency and accountability of funds utilised in the microfinance activities. Further, MFIs need to have a solid governance framework to minimise the possibilities of management failures which may jeopardise the efficacious application of received funds from governments and donors. In prior studies, the nature of corporate governance practised by MFIs is less understood and no substantive work using multiple MFI outcomes over a number of years has been undertaken. The concerns raised in reviews of individual MFIs and normative discussions of what should constitute best practice do point to the need for better understanding of the nature of corporate governance practised by the MFIs and also, to understand the nature of the relationship that exists between institutional success and corporate governance especially for developing countries. This study therefore identifies and provides a framework for undertaking corporate governance research relating to MFIs.

Download or read book The Handbook of Microfinance written by Beatriz Armendariz and published by World Scientific. This book was released on 2011 with total page 700 pages. Available in PDF, EPUB and Kindle. Book excerpt: Handbook of Microfinance addresses the gap between clients who are benefiting from access to financial services via MFIs, and the potential market, which remains underserved or untapped. This gap can be attributed to a "mismatch" between what consumers, or potential clients, demand and what MFIs offer in terms of financial products. The scope of the book is wide. It includes successes and failures, main challenges and debates, methodologies for impact evaluation via random trials, leading trends in Asia versus Latin America, main efforts in Africa, the importance of value chains in Central America, ethical and gender issues, savings, microinsurance, governance, commercialization trends and the potential advantages and disadvantages of it. Lastly it features main lessons from informal finance and 19th-century credit cooperatives addressing the above-mentioned mismatch.

Download or read book Microfinance Institutions written by R. Mersland and published by Springer. This book was released on 2015-12-11 with total page 329 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research on MFI performance is still in its infancy. MFIs are hybrid organizations with dual objectives. Performance studies in microfinance are therefore less straightforward compared to performance studies in traditional banking research. This book contains new MFI performance research by top scholars from across the globe.

Download or read book Governance of Microfinance Institutions MFIs written by S. M. Tariqul Islam and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The microfinance programme initiated by the Grameen Bank has become a model of lending to the poor and is now part of the global anti-poverty strategy. The present study examines the corporate governance practices of microfinance institutions (MFIs) in Bangladesh including the Grameen Bank based on a survey of 36 MFIs constituting almost 90 percent of the borrowers in Bangladesh in 2008. --P.ii.

Download or read book Corporate Governance and Financial Performance written by Pratheepkanth Puwanenthiren and published by . This book was released on 2019 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study analyses the correlation between Board attributes and company performance in a sample of 100 Australian and 100 Sri Lankan firms. The analysed Board attributes include size; gender ratio; fraction of non-independent members; and experience. The level of economic development considered to have a potential confounding effect on the outcomes. The analysis of the data suggest that: Boards in Australia are much larger than Boards in Sri Lanka; Boards are male dominated in both nations; and while Board structure provides predictive insight into firm performance, only a few individual attributes are significant. Important finding of this research is that the larger Boards of Australia have a significantly stronger influence on firm performance than the relatively smaller Boards of Sri Lanka. Future research should extend the review of the effects of Board size on corporate performance.

Download or read book Sustainability and Poverty Outreach in Microfinance the Sri Lankan Experience written by H Amarathunga and published by iUniverse. This book was released on 2019-08-19 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fulfillment of the role of microfinance institutions (MFIs) in providing affordable financial services to the poor is associated with invariable challenges to MFIs, particularly in maintaining MFIs’ sustainability. The research work undertaken in this context to prepare author’s doctoral thesis has finally culminated in a book, which has comprehensively dealt with the subject of sustainability versus poverty outreach in microfinance. Overall, the results of panel data analysis confirm that there is no trade-off between sustainability and poverty outreach of MFIs. Thus, MFIs are in a position to achieve operational self-sufficiency while expanding services to the poor. Further, it is evident from logit analysis that group lending as against individual lending is strategically important for MFIs to achieve sustainability, successfully warding off the problems of asymmetric information prevailing in the rural credit markets. The book carries a detailed description on Sri Lanka’s financial sector and poverty aspects with special emphasis on microfinance sector which comprises of more than 15000 service providers under a variety of institutions with different mandates and business models. Policy discussion along with the findings of econometric analyses provides the reader with new insights especially in the absence of any other macro-level studies carried out to cover microfinance sector in Sri Lanka.

Download or read book Microfinance Handbook written by Joanna Ledgerwood and published by World Bank Publications. This book was released on 1998-12-01 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of the 'Microfinance Handbook' is to bring together in a single source guiding principles and tools that will promote sustainable microfinance and create viable institutions.

Download or read book MFI Regulation and Supervision written by David Onditi and published by . This book was released on 2019-05-16 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (undergraduate) from the year 2019 in the subject Business economics - Business Management, Corporate Governance, grade: A+, University of Nairobi (Main Campus), course: International Business, language: English, abstract: There are a number of key principles of microfinance regulations. However, empirical research indicates that some key principles such as governance, and capital adequacy should be the main focus of the microfinance regulation and supervision. CGAP (2012) developed the Consensus guideline for the supervision and regulation of the microfinance institutions (MFIs). CGAP indicated that the MFIs should have a higher capital adequacy ratios as compared to the commercial banks since the microloans issued by the MFIs have insufficient security and the borrowers main motivation to repay the loans is the expectation that they would receive more loans. The MFIs are at a higher risk of loan delinquency contagion that can lead to a significant increase in the de-capitalization. Berger agreed with the above view by stating that MFIs need to have minimum capital adequacy as a means of helping the organizations to overcome the volatilities. The researcher thus concurs that capital adequacy should be a key principle in the regulation and supervision of the MFIs due to the volatilities associated with low collateral quality in the MFI loans, and increased risk of loan repayment delinquency. However, the principle should only apply to the MFIs that offer uncollateralized loans or in the cases where the security is not adequate to effectively cover the loan.

Download or read book Compliance to Corporate Governance Best Practices by Microfinance Institutions in Uganda written by Angualia Daniel and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Uganda, the private sector is dominated by Small and Medium commercial banks that have been in the economies since independence in 1962. The need for credit and other financial services to sustain Small and Medium Enterprises (SMEs) has led to a proliferation of MFIs. These institutions have affected the population positively and negatively. They have provided ready financial services to enterprises, but they have also cheated the unsuspecting public by taking deposits and paying the executives excessive amounts and/ or closing off businesses without paying the depositors. These problems may be attributed to lack of corporate governance practices by the MFIs. The 2003 MDI Act provides an opportunity for promoting Corporate Governance of MFIs in Uganda. However, the Act is not applicable to tier 4 MFIs which dominate the microfinance sector in the country. The practice of good corporate governance remains at the discretion of the leadership and management of the MFIs. Despite this, tier 3 MFIs compete with MFIs in tier 4 for the same clientele. This thesis is based on the notion that, MFIs in Uganda were established to contribute to sustained economic growth and development. In line with the Globalised settings of economies, MFIs are required to comply with corporate governance best practices to achieve sustained economic growth and development. The objective of the study was to examine the extent to which MFIs comply with corporate governance best practices for sustainable economic growth in Uganda. A cross-sectional case survey research designs for Kampala district were applied. The SPSS was largely used to analyze the data. Presentation of findings is largely by tables and descriptions. Findings depicted that to a large extent, the MFIs and especially non regulated MFIs do not comply with corporate governance best practices. This is largely due to ignorance of corporate governance best practices by the stakeholders.

Download or read book Mission Drift in Microfinance written by Pim Engels and published by ibidem-Verlag / ibidem Press. This book was released on 2010-07-01 with total page 127 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investments in microfinance by institutional investors are growing. The investors benefit from a dual return investment opportunity by balancing financial and social returns. Yet, commercial microfinance institutions tend to focus on their financial performance. Reaching out to wealthier clients while crowding out poorer clients enhances their profitability - a phenomenon called mission drift.Pim Engels has analysed the data of 600 microfinance institutions operating in 84 countries and presents now new insights to the phenomenon of mission drift. Based on his findings investors can recognise and prevent mission drift taking place amongst the microfinance institutions in their portfolio.

Download or read book Microfinance and Public Policy written by Bernd Balkenhol and published by International Labor Office. This book was released on 2007 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book states to aid agencies and governments to consider efficiency as a robust and reliable criterion to guide their decisions on whether continuing or discounting support from microfinance institutions (MFIS).

Download or read book Microfinance and the Corporate Governance Conundrum written by Umakanth Varottil and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance evolved as an instrument to reduce poverty and bring about sustainable development. As an alternative to traditional means of finance such as banking and insurance (which failed to meet the needs of poorer sections of society), microfinance was pioneered by self-help groups, non-governmental organizations and other non-profit institutions. However, with a view to building a scalable model that engenders overall sustainable development, the microfinance sector has witnessed the emergence of for-profit institutions that are structured along the lines of the modern business corporation. These microfinance companies adopt market-based mechanisms to raise capital that is employed in financing the poor and less-privileged. From a corporate governance perspective, microfinance companies and their boards of directors are faced with the classic dilemma. On the one hand, it is recognized that the principal goal of microfinance is to reduce poverty; to that extent the interests of borrowers (or customers) as principal stakeholders becomes paramount. On the other hand, a shareholder-centric approach operates as a major countervailing factor by compelling microfinance companies to generate profits to service investors and maintain stock price. The current discourse in corporate governance does not appear to satisfactorily address the predicament of boards of microfinance companies. This is due to the fact that investors and stock markets judge them against standards imposed by corporate governance norms and practices that are generally applicable in the corporate sector. This article argues that the employment of conventional concepts and doctrines in corporate governance to for-profit microfinance companies does not adequately address the issues specific to such companies. It calls for a paradigm-shift that necessitates examination of corporate governance in microfinance companies through an altogether different lens. After considering the available empirical evidence and analyzing qualitative data generated from case studies and field interviews, it seeks to develop separate parameters for measuring the correlation between corporate governance and performance of microfinance companies, such that the overarching goals of reducing poverty are not diluted.

Download or read book Factors Affecting the Performance of Microfinance Institutions in Uganda written by Andrew Katusabe and published by . This book was released on 2017-09-26 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: Doctoral Thesis / Dissertation from the year 2013 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: .69, Uganda Management Institute (Uganda Management Institute), course: Masters in Business Administration Degree, language: English, abstract: The purpose of this study was to examine factors affecting the performance of microfinance institutions in Uganda. Hofokam Limited (Ltd) was used as a case study. The objectives of the study were: to assess the effect of governance mechanisms on the performance of Hofokam Ltd, to establish the effect of management information systems on the performance of Hofokam ltd and to find out the extent to which finding affects the performance of it. The study sample was 48 and the findings showed that the selection criteria of the board members was not based on related experience and management remuneration was not competitive enough to attract and retain talent. The Management Information System didn't support real time reporting for decision making and branches were not networked with head office with the MIS, the microfinance institution had struggled to access reasonable capital with affordable terms since the donor funding stopped. The study drew conclusions that governance mechanisms greatly affected the performance of microfinance as they determine the direction of the MFI, MIS in its state had a relatively low impact on the performance of Hofokam Limited and that funding was not a critical success factor for MFI performance as compared to other factors. The study recommends that the selection of the Board should be to a large extent based on ones' professional experience, the MFI shouldn't commit all efforts to be regulated as it has not proved a success factor for many other MFIs, the MIS in use should be upgraded to enable linkage across the branches and head office rather than invest in a totally new software, the MFI should look at increasing the level of operational efficiency e

Download or read book Access to Microfinance and Financial Training for Innovative Urban Sustainability written by Mutisya, Emmanuel Musau and published by Langaa RPCIG. This book was released on 2014-10-07 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Kenyan population is highly concentrated in urban centres, leading to increased social, economic and environmental strains, with a significant percentage of urban dwellers living in sprawling slums. Urban development is increasingly a major focus, especially in the fight against urban sustainability problems. There is little practical orientation in the academic literature for the growing gap between the rich and poor. Current literature is enormously concerned with resource use and environmental pressures, paying scant attention to the nexus between urban sustainability and empowerment of the urban poor. This book initiates debates on the segment of urban population often referred to as "the bottom of the pyramid (BOP)", by analysing the microfinance innovation following evaluation of the impacts of access to microfinance and financial training and the implications to urban sustainability in Kenya. The main conclusion reached is that microfinance has an instrumental role to play in promoting sustainable urban development as it supports social welfare improvement and increases the livelihood of participants, business development and urban sustainability to a certain extent, thereby empowering the urban poor in contributing to poverty alleviation.