How to make microfinance successful

What is it about?

In this paper, we investigated the impacts of several governance characteristics (i.e. board size, proportion of women on the board, duality and presence of a female CEO) simultaneously on MFIs’ performance. We measured efficiency in terms of the MFI's dual objectives of financial sustainability and outreach. We found that smaller and gender-diverse boards have a positive impact on MFI's financial efficiency.

Featured Image

Why is it important?

Findings of this study provide some insights to the policy makers to develop sound corporate governance system in order to improve the performance of microfinance programs. Although the generality of the results is limited given that the present study focuses on Sri Lankan MFIs, the policy implications derived can be applicable to MFIs operate elsewhere with similar socio-economic characteristics.