Ed Jiminez from the Bangko Sentral ng Pilipinas speaks about the role Governance plays in Microfinance Institutions (Jan 29, PACAP Community Development Forum: Microfinance Amidst the Global Financial Crisis.

1. Governance of Microfinance Institutions Presented to Participants of PACAP’s Microfinance Development Forum Crowne Plaza Hotel, Ortigas Avenue 29 January 2009

4. Governance: Steer, Direct, Guide INSTITUTION

5. Providers of Capital (Performance Accountability Regulations (Legal Accountability Stakeholders (Interest Group Accountability Figure 1: The Context that Frames Governance GOVERNANCE Internal Accountability BOARD (Management Accountability) MANAGEMENT (Staff Accountability)

6. Member-owners “ Surplus” CDA Cooperatives Trustees “ Net Income” SEC NGOs Stockholders “ Dividends” BSP Banks Major Interest Group Regulator Structure

8. Relationships Between Board and Executive Boards as entities are permanent, despite director rotation Directors most likely are not experts in the institution’s area of activity Executives serves at the pleasure of the board Executives are professionals in the organization’s area of activity Board operates without staff Executive rely on staff A board makes binding decisions as a group Executive can make decisions alone Board members serve voluntarily or receive insubstantial compensation Executive are compensated Each board members has many additional commitments Executives deploy professional Skills exclusively to one organization Boards are legal entities and a group Executive are individuals Board of Directors/Trustees Executive