We have unfortunately seen the recent demise of a number of banks and microfinance institutions, owing to weak capitalisation, unsustainable business models, poor corporate governance, poor compliance with regulatory requirements, default on contractual obligations, among others, that ultimately led to their insolvency and eventual collapse.
Let me be clear that businesses fail for all kinds of reasons, but the weaknesses I have outlined above undoubtedly leave any business vulnerable and unable to withstand shocks, making collapse inevitable. Indeed, several corporate failures around the world have been associated with weak compliance.