Governance And Sustainability of Networked MFIs: Case of the CamCCul Network in Cameroon
Publication Date: 17/12/2021
Author(s): Nguenbu Telesphore, Nzongang Joseph.
Volume/Issue: Volume 4 , Issue 3 (2021)
Abstract:
The objective of this study is to determine the effect of internal and external governance mechanisms on the sustainability of the microfinance institutions of the CamCCul network in Cameroon. The study is conducted on a sample of 34 MFIs of the network over the 7-year period from 2009 to 2015. The results show, on the one hand, that the MFI's adherence to the network’s Risk Management program significantly and positively affects the financial sustainability of MIFs measured by their operational self-sufficiency. On the other hand, we find that the ownership of UBC Bank shares by the MFI and the culture of the zone of activity positively and significantly affect the MIFs social sustainability measured by the number of active borrowers.
Keywords:
Governance, Sustainability, Microfinance Institution
