The governance quality of microfinance institutions (MFIs) in MENA region

Abstract

This paper raises the problem of the quality of governance in the microfinance sector in the MENA region. It suggests the construction of an aggregate index to assess the institutions operating in this sector. The quality of governance is increasingly at the forefront of the major challenges faced by most MFIs, on the road to sustainability. Our sample consists of 18 MFIs belonging to MENA. The analysis of the aggregate index resulting from the data of our sample reveals deterioration in the quality of the governance of the MFIs observed. This observation tends to weaken the viability prospects that are legitimate in terms of microfinance.