When a change in Peruvian law opened the doors for private sector investments in state-owned microfinance institutions, Caja Huancayo was enthusiastic to seize the opportunity. However, it being a state-owned enterprise (SOE) represented specific corporate governance challenges that could potentially discourage private investors.

Recognizing the value add of aligning itself with international standards, Caja Huancayo decided to implemented, with the technical support of IDB Invest, a series of actions that positively impacted its corporate governance practices. 

This case study showcases the actions and approach taken by Caja Huancayo to strengthen its governance and cement its reputation as one of Peru’s most important microfinance institutions.