Transparency and Disclosure in the Global Microfinance Industry : Implications for Practice and Policy Makers

In this chapter, we discuss transparency challenges in the global microfinance industry. The issue of transparency not only is on the agenda of listed companies and regulated banks in mature markets but is also hotly debated in regard to firms operating in emerging markets and development agencies. Moreover, several actors in the microfinance industry have recently been accused for having low standards of transparency. Thus, we argue that the issue of transparency in the global microfinance industry serves as an interesting case with both theoretical and practical implications. Also, in this chapter, we will discuss how the microfinance industry has been shaped by various issues concerning transparency. Specifically, we discuss how the supply and demand of information works in relation to the key stakeholders in the microfinance industry: customers, donors and owners