Chapter 8: Corporate Governance in Islamic Microfinance Institutions: Evaluating Current Mechanisms and Opportunities for Improvement

This chapter is written to understand the mechanism of corporate governance for Islamic microfinance institutions. However, there is a lack of studies that are focused on governance mechanism of Islamic microfinance institutions. Therefore, this study is developed by combining various parameters and elements associated with corporate governance from Asian and Western markets. However, the lack of literature associated with the governance of Islamic microfinance institutes is one of the barriers to the conduct of rigorous and thorough research. This study also utilized some parameters, significance, and criteria that seem homogenous for traditional and Islamic microfinance institutes. The purpose of deep understanding and analysis is to provide a better and conceptual model for the increase of effectiveness of corporate governance in Islamic microfinance institutes. However, this is one of the initial studies on this domain and further studies are also required to test, validate, and optimize the model provided for corporate governance of Islamic microfinance institutes.