Handbook for the Analysis of the Governance of Microfinance Institutions

This guide uses a stakeholder analysis approach to the evaluation of MFI governance. It distinguishes between several types of institutions, namely, cooperatives, non-profit organizations, private companies and public institutions, and examines themes that are relevant to all these institutions as a whole as well as individually. Written for those working on MFI governance such as elected officials, directors and donors, the guides approach is based on the following principles:

• Governance can take on many forms and there is no “"best practice”" approach;
• MFI crises should be analyzed instead of being ignored, enabling the MFI to judge the form of governance for appropriateness;
• It is possible to analyze all MFI types without ignoring the specificities of different institutional forms.

It provides two complementary modules that are organized around five themes - mission/vision, financing, institutional type, stakeholders and organization. They comprise:

• Diagnostic tool for evaluating MFI governance including stakeholder analysis, decision-making processes and crisis/problem management;
• Guide for analyzing MFIs strategic choices and governance challenges.