Universal Corporate Governance Code for Microfinance Institutions

This Guide covers the essentials that MFIs must consider when preparing a corporate governance code and implementing it in their Board of Directors. BBVA Microfinance Foundation has written it in collaboration with the IDB/MIFT. The guide is a supplement to the Universal Code of Corporate Governance for Microfinance Institutions, which contains a series of good practices, standards, and principles that the BBVA Microfinance Foundation considers suitable for the good governance of an MFI.

The guide states that the lack of good corporate governance is one of the main challenges facing the sector in Latin America and the Caribbean. Corporate governance is related to an institution's internal operating and control procedures. It plays an important role in creating transparency and trust for investors and in attracting capital. Good corporate governance contributes to efficient management and helps consider stakeholder interests, hence boosting the MFI’s reputation and integrity. Topics in the guide include:

• Definition of good corporate governance;
• Importance of corporate governance;
• Corporate governance principles;
• Good governance in administration.