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Dual Information Asymmetry, Opportunism In Loans Distribution And Governance Reforms In Microfinance Institutions: A Case Study From Cameroon

Author: TAMOKW√Č PIAPTIE GEORGES BERTRAND
Published in IJED, Vol. 13 No. 2

This paper deals on governance reforms in MFIs that can help stemming the possible opportunism of their decision-makers in the distribution of loans in order to protect the public savings they collect. A theoretical framework is built and simple least squares regressions with data of an MFI from Cameroon prove its reality. We then suggest two complementary reforms. The first proposes the creation of two comparative ratios reflecting the double concern of repressing opportunism and fostering equity. The second recommends that the Board of Directors of MFIs be opened to some representatives of their external clients.

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