Building Bridges: Implementing Governance for Sustainability in the Microfinance Banks of Developing Countries
| Autor: | Augustin Dachi, Karina Kasztelnik |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2024 |
| Předmět: | |
| Zdroj: | Financial Markets, Institutions and Risks, Vol 8, Iss 3, Pp 1-16 (2024) |
| Druh dokumentu: | article |
| ISSN: | 2521-1250 2521-1242 |
| DOI: | 10.61093/fmir.8(3).1-16.2024 |
| Popis: | This study delves into the pivotal role of directors of microfinance banks in developing countries in implementing governance practices to ensure sustainability. As microfinance institutions strive to balance social impact with financial viability, effective governance emerges as a crucial factor for sustainable operations. The research investigates the strategies and frameworks adopted by directors of microfinance institutions to establish robust governance structures that promote long-term sustainability. Through comprehensive case studies and interviews with key stakeholders, the study identifies best practices and common challenges faced by microfinance bank directors in governance implementation. Key areas of focus include risk management, transparency, accountability, and stakeholder engagement. The findings highlight the critical importance of strong governance in mitigating risks, enhancing institutional credibility, and ensuring the alignment of financial and social objectives. Moreover, the research underscores the necessity for tailored governance models that consider the unique socio-economic contexts of developing countries. It reveals that adaptive governance strategies, which incorporate local cultural and regulatory nuances, significantly contribute to the sustainability and resilience of microfinance institutions. By bridging theoretical governance principles with practical implementation, this study provides actionable insights for directors seeking to enhance the sustainability of microfinance institutions. The implications of this research are far-reaching, offering valuable lessons for policymakers, practitioners, and academic scholars. It emphasizes the need for continuous capacity building and the development of governance frameworks that can evolve with the dynamic landscapes of developing economies. Ultimately, the study contributes to the broader discourse on sustainable development by elucidating how effective governance can empower microfinance institutions to drive socio-economic progress in developing countries. |
| Databáze: | Directory of Open Access Journals |
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