Crisis in Microfinance Institutions: Identifying Problems

Sainz-Fernández, Isabel; Torre-Olmo, Begoña; López-Gutiérrez, Carlos; Azofra, Sergio Sanfilippo

doi:10.1002/jid.3129

Cited by 23 publications

(26 citation statements)

References 29 publications

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“…Sainz‐Fernandez et al . () show that political stability reduces the likelihood of financial crises for MFIs. They investigate this as part of a broader analysis of the importance of the external environment.…”

Section: Discussionmentioning

confidence: 99%

“…The results of their findings are mixed. Whereas Ashta and Fall (2012), Sainz-Fernandez et al (2015) and Xu et al (2016) find a positive association between the macro-economic environment and the financial performance of MFIs, Campbell and Rogers (2012) find the opposite.…”

Section: Macro-economic Conditionsmentioning

confidence: 97%

“…According to Ault and Spicer (2014), NGOs have better social performance than commercial MFIs in weak states. Sainz-Fernandez et al (2015) show that political stability reduces the likelihood of financial crises for MFIs. They investigate this as part of a broader analysis of the importance of the external environment.…”

Section: The Institutional Contextmentioning

confidence: 99%

“…They claim that, whereas profit-oriented MFIs respond to supervision by maintaining profit rates and curtailing outreach to women and customers that are costly to reach, NGOs reduce profitability but maintain outreach. With respect to the existence of rating agencies and/or credit bureaus, studies generally find positive effects on both financial (Bassem, 2009;McIntosh et al, 2010;Sainz-Fernandez et al, 2015) and social performance (Annim, 2012b;Bumacov et al, 2014).…”

Section: The Institutional Contextmentioning

confidence: 99%

See 3 more Smart Citations

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2018

Journal of Economic Surveys

106

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Microfinance institutions (MFIs) generally aim at improving the access of the poor to financial services while at the same time being financially sustainable. But what do we know about how MFIs reach and combine these two goals? We carry out a systematic review of close to 170 papers discussing the determinants of the financial and social performance of MFIs. The review shows that the most important determinants addressed in the literature are MFI characteristics (size, age and type of organization), their funding sources, the quality of organizational governance and the MFIs’ external context such as macro‐economic, institutional and political conditions. The evidence on these issues is rather mixed. Moreover, the direction of the relationship between these drivers and MFI performance depends on the context, particularly the country‐specific context. Finally, there is a lack of consensus in the literature on the measurement of financial and social performance. Due to the complexity of the concept, we argue that social performance should only be assessed by using a multidimensional perspective. This can be done either by applying recent and holistic social performance measures such as the SPI4, or at least by using a combination of proxies, such as outreach, gender and rural measures.

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Section: Discussionmentioning

confidence: 99%

Section: Macro-economic Conditionsmentioning

confidence: 97%

Section: The Institutional Contextmentioning

confidence: 99%

Section: The Institutional Contextmentioning

confidence: 99%

See 2 more Smart Citations

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2018

Journal of Economic Surveys

106

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“…It is supported by public and private institutions that work in development and financial inclusion, and is a key tool for bringing MFIs into contact with investors and for supporting research and knowledge in the sector. Its data is frequently used in studies of this type (Gutiérrez‐Nieto et al , ; Haq et al , ; Hartarska et al , ; Hermes et al , ; Sainz‐Fernandez et al , ; Servin et al , ; Widiarto & Emrouznejad, ).…”

Section: Sample Variables and Methods Employedmentioning

confidence: 99%

Social Efficiency in Microfinance Institutions: Identifying How to Improve It

2016

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This article analyses the determinants for social and economic efficiency in microfinance institutions using a seemingly unrelated regression. We find two factors that improve their relative efficiency: legal status and target market; however, age and scale are not clear determinants. The main contribution of this paper is to engage microfinance institutions to achieve the desired social efficiency without giving up economic efficiency as the two can be complementary; moreover, it is possible to be efficient as a Non Banking Financial Institution/Non‐Governmental Organization with small size and low‐end target, at least. The paper is a new contribution in line with the so‐called paradox of social cost. Copyright © 2016 John Wiley & Sons, Ltd.

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Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2019

Contemporary Topics in Finance

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Microfinance institutions (MFIs) generally aim at improving the access of the poor to financial services while at the same time being financially sustainable. But what do we know about how MFIs reach and combine these two goals? We carry out a systematic review of close to 170 articles discussing the determinants of the financial and social performance of MFIs. The review shows that the most important determinants addressed in the literature are MFI characteristics (size, age, type of organization), their funding sources, the quality of organizational governance and the MFIs' external context such as macroeconomic, institutional and political conditions. The evidence on these issues is rather mixed.Moreover, the direction of the relationship between these drivers and MFI performance depends on the context, particularly the country-specific context. Finally, there is a lack of consensus in the literature on the measurement of financial and social performance. Due to the complexity of the concept, we argue that social performance should only be assessed by using a multidimensional perspective. This can be done either by applying recent and holistic social performance measures such as the SPI4, or at least by using a combination of proxies, such as outreach, gender and rural measures. Burzynska, K., & Berggren, O. (2015). The impact of social beliefs on microfinance performance.

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Crisis in Microfinance Institutions: Identifying Problems

Cited by 23 publications

References 29 publications

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Social Efficiency in Microfinance Institutions: Identifying How to Improve It

Determinants of the Performance of Microfinance Institutions: A Systematic Review

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