MICROCAPITAL BRIEF: Fundacion Microfinanzas BBVA Launches Spanish-Language “Universal Code for Corporate Governance”, “Guide to Adopting Good Governance Principles” Targeted at Latin American Microfinance Sector

Fundacion Microfinanzas BBVA (BBVAMF), a nonprofit created in 2007 as a subsidiary of multinational bank BBVA of Spain, recently launched its “Universal Code for Corporate Governance” and “Guide to Adopting Good Governance Principles” for microfinance institutions (MFIs) in Latin America [1,2]. The code, which is available to all interested MFIs, establishes principles and standards that promote good governance for MFIs. The code suggests that corporate governance is fundamental to ensuring efficient management and administration of MFIs as well as to creating transparency and trust for investors. Specifically, it emphasizes the need for sound financial performance and self-sustainability in addition to underscoring the importance of adaptability to change, adoption of internal and external control mechanisms and assessment of economic and social impact. Complementary to the code, BBVAMF also published a guide that covers elements to be considered by MFIs when drafting and implementing a corporate governance code. During a recent public presentation, president of BBVAMF Manuel Mendez del Rio stated that “the absence of good corporate governance is one of the most limiting factors faced by the microfinance sector to be able to serve the more than 250 million people who currently do not have access to the financial system in Latin America” [3].

BBVAMF plans to conduct workshops tailored for senior managers of MFIs in order to facilitate the implementation of the code. The schedule for these workshops has not yet been released.

By Jacqueline Foelster, Research Associate

About Fundación BBVA Microfinanzas (BBVA Microfinance Foundation): BBVA Microfinance Foundation (BBVAMF) is a nonprofit business that was created in May 2007 as a subsidiary of BBVA, a Spanish bank reporting 47 million customers worldwide as of September 2010. The goal of the foundation is to boost the economic and social development of disadvantaged people through access to productive microfinance. The BBVAMF is comprised of six members, including Caja de Ahorro y Credito Nuestra Gente of Peru; Banco de las Microfinanzas Bacamia of Colombia; Servicios Microfinancieros SA, which operates in Chile and Argentina; Microserfin of Panama; and Microfinanzas-PR. As of December 2010, BBVAMF’s members reported total loans outstanding of USD 450 million and 630,000 borrowers.

Sources and Additional Resources:

[1] “Universal Code for Corporate Governance for Microfinance Institutions” (Spanish), http://www.mfbbva.org/fileadmin/2011/PAGINAS/GUIA_web.pdf

[2] “Guide to Adopting Good Governance” (Spanish), http://www.mfbbva.org/fileadmin/2011/PAGINAS/GUIA_web.pdf

[3] BBVAMF Press Release, “BBVA Microfinance Foundation Launches the Universal Corporate Governance Code for the Latin American Microfinance Sector”, http://www.mfbbva.org/english/prensa/noticia/article/76/89.html?no_cache=1&cHash=2eb33ad5a0

MicroCapital.org Brief, April 5, 2011, “Smart Campaign Releases New Guidance Document, Proposed Revisions to ‘Client Protection Principles’”, https://www.microcapital.org/microcapital-brief-smart-campaign-releases-new-guidance-document-proposed-revisions-to-client-protection-principles/

MicroCapital.org Brief, November 9, 2010, “Smart Campaign Partners with African Microfinance Network (AFMIN) and Plan International to Promote Client Protection Among African and Asian MFIs”, https://www.microcapital.org/microcapital-brief-smart-campaign-partners-with-african-microfinance-network-afmin-and-plan-international-to-promote-client-protection-amoung-african-and-asian-mfis/

MicroCapital.org Brief, December 28, 2010, “Fundacion Microfinanzas BBVA Acquires Microfinance Institution (MFI) Financiera Confianza of Peru”, https://www.microcapital.org/microcapital-brief-fundacion-microfinanzas-bbva-acquires-microfinance-institution-mfi-financiera-confianza-of-peru/

MicroCapital.org Brief, December 15, 2009, “Fundacion BBVA Microfinanzas, Microfiannce Arm of Banco Bilbao Vizcaya Argentaria (BBVA), to Begin Operating in Brazil and Mexico”, https://www.microcapital.org/microcapital-brief-fundacion-bbva-microfinanzas-microfinance-arm-of-banco-bilbao-vizcaya-argentaria-bbva-to-begin-operating-in-brazil-and-mexico/

MicroCapital Universe Profile: Fundacion BBVA Microfinanzas (BBVA Microfinance Foundation), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fundaci%C3%B3n+BBVA+Microfinanzas

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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