Factors Affecting the Sustainability of Microfinance Institutions: A Case of Malawi Microfinance Institutions

Kayembe, Helex; Lin, Yunjian; Munthali, George N. Chidimbah; Xuelian, Wu; Banda, Lazarus Obed Livingstone; Dzimbiri, Mastano; Mbughi, Colleen

doi:10.4236/jfrm.2021.102007

Cited by 9 publications

(6 citation statements)

References 29 publications

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“…The study was conducted in Malawi, Africa. Malawi is located in the southern part of Africa, bordering countries like Zambia, Tanzania, and Mozambique [ 32 , 33 ]. It is one of the least developing countries in the world where a majority of its population still faces hunger, malnutrition, and lives under the poverty line [ 15 , 34 , 35 ], and depend mostly on agriculture for business and feeding the population [ 36 ].…”

Section: Methodsmentioning

confidence: 99%

An investigation of the Sustainability of Village Savings and Loans Associations (VSLAs) amidst Covid-19 and its impact on household income levels: lessons from Malawi, Sub-Saharan Africa

et al. 2022

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Background Food security, malnutrition, and poverty are some of the challenges that most of the sub-Saharan African countries have been historically facing. With the coming of Covid-19 pandemic, the sustainability of the Village Savings and Loans Association which are formed to counter fight these challenges is questioned. Aim This study aimed to assess factors associated with the Sustainability of VSLAs amidst Covid-19 and its impacts on households' income levels. Methods An online cross-sectional design was conducted from November to January 2021, targeting VSLAs members in Mzuzu. A snowball and respondent-driven sampling technique were used to recruit the needful participants using a referral approach. IBM SPSS version 23 was used to perform descriptive statistics, Chi-Square, and binary logistic regression with unstandardized Beta (β), Odds Ratios (OR), and 95% Confidence Interval (CI) being taken into account with P-value set at 0.1, 0.05 and 0.01 significance levels. Results Our study finds that household income declined by 54% for those earnings belonged to ˂ MK5,000, as compared to 38% and 15% for medium (MK5,000 ≥ MK10,000) and higher (> MK10,000) income bands respectively. Our study shows that gender (β = 0.437, p = 0.094), age-group (β = 1.317, p = 0.000), education (β = 2.181, p = 0.047), share contributions (β = 1.035, p = 0.008), meetings (β = 0.572, p = 0.021), occupation (β = -0.453, p = 0.106), and frequency of meeting (β = -0.507, p = 0.049) were positively and negatively statistically significant predictors. Conclusion According to the findings of this study, households with lower income earners, which is one of the indicators of poverty, are more affected by the pandemic than their counterparts. We urge that the Malawi governments should maintain and, if they haven't already, implement programs that support low-income households, such as transfer payments, which have been shown to uplift people out of income poverty in many developing countries.

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Section: Methodsmentioning

confidence: 99%

An investigation of the Sustainability of Village Savings and Loans Associations (VSLAs) amidst Covid-19 and its impact on household income levels: lessons from Malawi, Sub-Saharan Africa

et al. 2022

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“…Accounting-based measures are the most common and readily available means of measuring organizational performances (Makhija, & Trivedi, 2020). Conventionally, accounting-based performance measures like ROA, ROE, and EPS have commonly been used by shareholders, managers, investors, analysts, and other interested parties to assess current company performances (Khamis et al, 2015). This study measures the financial sustainability of microfinance banks using Return on Assets (ROA) and Return on Equity (ROE).…”

Section: Financial Sustainability Of Microfinance Banksmentioning

confidence: 99%

Central Bank Regulations and the Financial Sustainability of National Microfinance Banks in Nigeria

Aliyu,

Gambo,

Enesi

et al. 2023

EJAAFR

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This study examines the impact of Central Bank Regulations on the Financial Sustainability of National Microfinance Banks in Nigeria. The study employed the expost-facto research design. Data was collected from the central bank bulletins and the financial reports of the sample seven national Microfinance banks. The data collected was analysed using Multivariate Analysis of Variance (MANOVA). The findings derived from the empirical analysis revealed significant relationships between the Minimum Capital Requirement, and the financial sustainability indicators, including returns on assets (ROA) and returns on equity (ROE) and confirmed that the Minimum Capital Requirement imposed by the central bank has a significant impact on the financial sustainability of microfinance institutions. Based on the findings of the study, the following policy recommendations can be made; Policymakers and regulators should continue to enforce and monitor the Minimum Capital Requirement for microfinance banks. Adequate capitalization is essential for the financial sustainability and profitability of microfinance institutions. However, the capital requirement should be flexible enough to accommodate the specific needs and characteristics of microfinance banks, considering their focus on serving the underserved segments of the population. And Microfinance banks should prioritize maintaining an adequate level of capital to ensure their ability to generate returns on assets. This can be achieved through effective capital management strategies, including attracting additional capital from investors, optimizing internal capital generation, and ensuring efficient use of capital in productive activities.

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“…Their study delineate seven major themes of sustainable finance research-socially responsible investing, climate financing, green financing, impact investing, carbon financing, energy financing, and governance of sustainable financing and investing. Kayembe, et al, (2021)…”

Section: Sustainability In Financementioning

confidence: 99%

Examining Sustainability Education in Economics, Accounting and Finance in Tertiary Institutions in Ghana

Asumadu¹

2022

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Sustainability and sustainable development have aroused many debates and actions in all facets of human endeavors, including in developing countries. This study examined the extent to which tertiary business schools in Ghana embrace sustainability in their curricula. By using programs advertised on their respective institutions' websites for the 2022-2023 academic year, and looking for programs that have sustainability or sustainability as a prefix. Additionally, the author relied on the examination timetable of the selected institutions for sustainability prefixes. The researcher finds that sustainability education in tertiary business faculties in Ghana is alarmingly low; despite the fact that corporate social responsibility as a course is taught in accounting courses, it is not enough to address sustainability issues in business faculties. This study recommends that it behooves the government and education regulators in partnership with large corporations to institute schemes that could entice business schools to include sustainability issues in their business education curricula.

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Factors Affecting the Sustainability of Microfinance Institutions: A Case of Malawi Microfinance Institutions

Cited by 9 publications

References 29 publications

An investigation of the Sustainability of Village Savings and Loans Associations (VSLAs) amidst Covid-19 and its impact on household income levels: lessons from Malawi, Sub-Saharan Africa

An investigation of the Sustainability of Village Savings and Loans Associations (VSLAs) amidst Covid-19 and its impact on household income levels: lessons from Malawi, Sub-Saharan Africa

Central Bank Regulations and the Financial Sustainability of National Microfinance Banks in Nigeria

Examining Sustainability Education in Economics, Accounting and Finance in Tertiary Institutions in Ghana

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