Robust Internal Control Systems Objectives: A Catalyst for the Financial Sustainability of Member-Owned Microfinance Institutions in Cameroon
Maurice Ayuketang Nso1, Njekang Dieudonne Nkwati2
1Department of Money and Banking, Higher Institute of Commerce and Management (HICM), The University of Bamenda, Cameroon (+237) 678 405 271, lordnso@yahoo.co.uk
2Dr in Banking and Finance, Graduate Teaching Assistant (Department of Banking and Finance, Faculty of Economics and Management Sciences) and Part-Time Assistant Lecturer (Higher Institute of Commerce and Management)-The University of Bamenda, Cameroon (+237) 677 691 607, dnjekang@gmail.com
To cite: Nso et al. (2026). Robust Internal Control Systems Objectives: A Catalyst for the Financial Sustainability of Member-Owned Microfinance Institutions in Cameroon. Journal of Tertiary and Industrial Sciences (JTIS), 6(3), 79–82. https://doi.org/10.5281/zenodo.22179234
Submission Date: 30/05/2026 Acceptance Date: 20/07/2026
Abstract
This study explains the effect of internal control systems objectives on the financial sustainability of member-owned microfinance institutions (MFIs) in Cameroon. Employing a longitudinal panel design from 2021 to 2025, utilising advanced econometric methods including fixed-effects, random-effects, GLS, Driscoll-Kraay standard errors and the dynamic Arellano-Bond GMM estimator to address issues of heteroskedasticity, autocorrelation, endogeneity and unobserved heterogeneity. Findings from GLS models reveal positive and statistically significant effects of cash flow oversight and asset stewardship, with membership growth also positively influencing sustainability. Hazard mitigation unexpectedly shows a negative effect across the models. Fixed-effects estimations with Driscoll-Kraay standard errors confirm the robustness of these findings, and GMM findings indicate that past financial sustainability figures significantly predict current outcomes. Based on these findings, recommendations include; strengthening liquidity buffers through compliance with Basel III standards, implementing conservative hazard mitigation protocols, enhancing asset stewardship and expanding member engagement via digital channels would improve MFIs sustainability. Keywords: Asset stewardship, Cash Flow Oversight, Hazard Mitigation, Internal Control Systems Objectives, Sustainability of Microfinance Institutions