Efficiency in microfinance: financial and social performance of agricultural credit cooperatives in Bulgaria

Amersdorffer, Florian; Buchenrieder, Gertrud; Bokusheva, Raushan; Wolz, Axel

doi:10.1057/jors.2013.162

Cited by 33 publications

(30 citation statements)

References 16 publications

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“…The governance category contains information about the board characteristics, the governance structure and the mechanisms of corporate governance. That is, to determine which sustainability approach is given in the various articles, each of the keywords has been categorized and classified according to the GRI standardized reference framework [66].…”

Section: En3mentioning

confidence: 99%

“…Agricultural [66][67][68] and microenterprise loans [47,48,69] are financial aspects that are relevant to scientific research and that institutions report positively for all regions. Two other aspects which are widely investigated issues and are also reported in Africa, South Asia, and EAP regions are loans for other households' needs [39,68] and other education services [70,71].…”

Section: Convergences: Reported and Researchedmentioning

confidence: 99%

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Microfinance Institutions Fostering Sustainable Development by Region

2020

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In the last few years, considerable attention has been paid to microfinance as a relevant participant in the formal financial system, whose target audience is people who are otherwise at risk of financial exclusion. In parallel, sustainability and the promotion of Sustainable Development (SD) are imposed as the theoretical frame when facing any study. This, connected with cultural and organizational dimensions theories, are the analytical framework for the analysis of the relationship between the context of performance in which Microfinance Institutions (MFIs) operate and their activity in promoting sustainability. A holistic approach is necessary to make operational these concepts; for that reason, financial, environmental, social and governance dimensions (FESG), and the balance among them, have to be considered. The main objective of the paper is to explore to what extent MFIs are fostering SD, and how this promotion is performed by region. For the analysis, two different sources of information have been studied: sectoral academic literature that focuses on the different sustainability dimensions, and MIX Market sustainability data obtained from the MFIs. A keyword analysis of the selected papers has been executed to be conscious of the most investigated aspects by region; on the data provided by the institutions, a Kruskal-Wallis H test has been performed to learn what the main Sustainability Indicators (SIs) are that are reported affirmatively. To obtain comprehensive research, a comparative study of the results offers the convergences, divergences and gaps of information in each of the regions. The findings show significant differences depending on the region, and confirm that operationalization should be adjusted at the regional context of the MFIs. The paper, with the inherent limitations due to data quality, also offers recommendations for the better promotion of sustainability in each of the regions.

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Section: En3mentioning

confidence: 99%

Section: Convergences: Reported and Researchedmentioning

confidence: 99%

Microfinance Institutions Fostering Sustainable Development by Region

2020

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“…The bestpracticed firms were observed to have few bad debts and designated as 'industrial or associational Credit Unions' and informational advantages arising from common bonds facilitated lending decisions. Amersdorffer, Buchenrieder, Bokusheva & Wolz (2015) analysed the performance of 15 Agricultural Credit Cooperatives (ACCs) in Bulgaria using data for the period 2000 to 2009 based on a case study. The authors developed a new analytical model for DEA based on the Social Performance Indicator (SPI) audit tool which enabled them to evaluate the quality of social networks and client benefits within the framework of efficiency analysis.…”

Section: Concept Of Efficiency and Its Relation To Outreach And Sustamentioning

confidence: 99%

Efficiency of microfinance institutions in sub – Saharan Africa: a stochastic frontier approach

Adams¹,

Tewari²

2016

Ghana J. Dev. Stud.

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The push for microfinance institutions (MFIs) to achieve sustainability in recent years has made efficiency a prerequisite. Assessment of efficient operations of MFIs is vital for both policy and investment decision making and guaranteeing financial access to the poor. This study investigates the cost efficiency of MFIs operating in 10 Sub-Saharan Africa (SSA) countries over the period [2003][2004][2005][2006][2007][2008][2009][2010][2011][2012][2013] and the factors that drive efficiency. The authors considered the Cobb-Douglas stochastic cost frontier model with truncated normal distribution and time variant inefficiency were estimated. The results show that MFIs are cost inefficient in their intermediation role as they currently achieve a mean cost efficiency of 40.09 percent. The main determinants of MFIs efficiency are total assets, operating expense to assets ratio, average loan balance per saver, the percentage of the female borrower and borrower per staff member. The study recommends that practitioners and managers of MFIs should improve on productivity through technical training in portfolio quality management and offer diverse financial products and services innovatively at minimised cost.

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“…It remains Nigeria's major source of employment as it engages about 70% of the labour force. Because of how important and promising the Agricultural sector is, a lot of entrants are into farming thus increasing the demand for loans [3][4][5].…”

Section: Introductionmentioning

confidence: 99%

Efficiency of Microfinance Banks’ Lending to Agriculture in Imo State, Nigeria

Okwara

Umebali

Agu-Aguiyi

et al. 2019

AJAEES

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The study analysed the efficiency of microfinance banks’ lending to agriculture in Imo state, Nigeria. It analysed the cost of loan recovery in relation to the total loan recovered. Purposive sampling technique was used in the study. A list of microfinance banks was collected from the Owerri office of central bank of Nigeria which had 43 microfinance banks in the state. This formed the sampling frame from which 26 microfinance banks were purposively selected. The purposive selection was based on the microfinance banks that had the highest number of agricultural loan beneficiaries. Data were analysed using descriptive statistics and efficiency of loan recovery model. The result revealed that the efficiency index of the microfinance banks ranged from 0 to 0.5 and a loan and a mean of 0.06. The result further showed that 96.1% of the banks were within the index of 0 and 0.2. This implies that for every one thousand naira recovered from beneficiaries of microfinance banks, they spent sixty naira from their interest in recovering the loan. The results further revealed that 61.54% of the banks use additional guarantors to recover their loans while unconventional methods of recovery such as the use of the police accounted for 38.46% of the recovery technique. It was therefore recommended and concluded that since these microfinance banks are efficient in their loan recovery, they should make micro loans available to potential borrowers who want to invest in agriculture.

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Efficiency in microfinance: financial and social performance of agricultural credit cooperatives in Bulgaria

Cited by 33 publications

References 16 publications

Microfinance Institutions Fostering Sustainable Development by Region

Microfinance Institutions Fostering Sustainable Development by Region

Efficiency of microfinance institutions in sub – Saharan Africa: a stochastic frontier approach

Efficiency of Microfinance Banks’ Lending to Agriculture in Imo State, Nigeria

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