Microfinance institutions governance : the right track from microfinance towards local development - bank rakyat Malaysia as an evidence

Abstract EN

This study aims to explore Microfinance Institutions (MFIs) capacity to improve governance practices as an effective step to achieve local development.

Raising the standard of living, and lifting people from poverty and providing them with good quality financial services require improving governance practices of MFIs.

Therefore, this paper tackled the topic gradually from the whole to the part.

First, it dealt with some principles and fundamentals of local development promotion in general.

Then it moved to MFIs governance particularly.

In the end, the experience of Bank Rakyat Malaysia, as one of the most successful microfinance service providers in Malaysia, was cited.

This paper concluded with a set of findings and recommendations that aspire to promote the role governance mechanisms in MFIs play in the local development.