Financial Literacy and its Effect on Microfinance Institutions’ Financial Performance in Bamenda, Cameroon

Authors

  • Cordelia WOKWEN Higher Institute of Commerce and Management (HICM), The University of Bamenda, Cameroon
  • Nicodeme KEMDONG TENEKEU Faculty of Economics and Management Sciences (FEMS), The University of Bamenda, Cameroon
  • Monta Maimouna NGOUNGOURE Faculty of Economics and Management Sciences, University of Yaoundé II, Cameroon
  • Lidwin YILEM Faculty of Economics and Management Sciences (FEMS), The University of Bamenda, Cameroon

Keywords:

Financial Literacy, Financial Performance, Microfinance Institutions

Abstract

This study seeks to explore the effect of financial literacy on the financial performance of Microfinance Institutions (MFIs) in Bamenda, Cameroon. Specifically, it has as objective to know the effects of budgeting literacy, credit management literacy, and savings literacy on the financial performance of MFIs in Bamenda, Cameroon. The study adopts a quantitative research approach with the use of structured questionnaires. Through a convenience sampling technique, questionnaires are administered to an adopted sample size of 50 MFIs drawn from 96 registered MFIs located in Bamenda. The data collected is analysed with the use of the Ordinary Least Squares (OLS) method. The results show that budgeting literacy (β=0.6812, p<0.001), credit management literacy (β=0.5083, p<0.001), and savings literacy (β=0.5941, p<0.001) have a positive significant effect on the financial performance of MFIs in Bamenda, Cameroon. It is recommended that MFIs should institute programs or campaigns on financial literacy for their various clients because this will permit them to better manage their finances, lend wisely as well as see the importance of saving which on the other hand will lead to better performance for the MFIs.

JEL Classification: G21, G53, L25, O16

Paper Type: Empirical Research

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Published

2026-10-31

How to Cite

WOKWEN, C., KEMDONG TENEKEU, N., NGOUNGOURE , M. M., & YILEM, L. (2026). Financial Literacy and its Effect on Microfinance Institutions’ Financial Performance in Bamenda, Cameroon. International Journal of Accounting, Finance, Auditing, Management and Economics, 7(13), 612–625. Retrieved from https://ijafame.org/index.php/ijafame/article/view/2740

Issue

Vol. 7 No. 13 (2026)

Section

Articles

License

Copyright (c) 2026 Cordelia WOKWEN, Nicodeme KEMDONG TENEKEU, Monta Maimouna NGOUNGOURE, Lidwin YILEM

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