Corporate governance of microfinance institutions

The unique nature of microfinance sector and ownership structure of MFIs in Ethiopia was needed special attentions. The roles of corporate governance practices in sustainable financial performance had not been studied adequately. Hence, this corporate governance towards sustainable financial performance of MFIs in Ethiopia was studied to contribute in filling the study gaps and resolve the respective problems in the sector. In effect, the primary & secondary data were collected from sampled MFIs, analyzed, and discussed. Among others, the corporate governance actors of ownership structure, shareholders, board of directors and senior managements’ practices towards sustainable financial performances of MFIs were assessed and presented. It was assured that corporate governances affect sustainable financial performances of MFIs. Moreover, it was concluded that the corporate governance of MFIs in Ethiopia were need some improvements to maintain their sustainable financial performances.