The Convergence Between Outreach and Financial Performance in Mediterranean MFIs: A Panel Data Analysis

Omri, Waleed; Chkoundali, Ridha

doi:10.1007/s11300-011-0185-3

Cited by 9 publications

(15 citation statements)

References 12 publications

(14 reference statements)

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“…Agier and Szafarz (2013) argued that although loan approval rates were gender-neutral, the loan size to female borrowers on the other hand was lower. Similar results had been found earlier by Omri and Chkoundali (2011). Different types of MFIs appear to play a role, as argued by D´Espallier, Guering and Mersland (2013); MFIs focusing on women are usually NGOs.…”

Section: Gender In the Microfinance Literaturesupporting

confidence: 88%

Microfinance institutions' failure to address poverty: A narrative critical literature review

Gudjonsson¹

2017

TVE

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This critical literature review begins by giving a short introduction to the microfinance industry. Microfinance institutions (MFIs) are explained and an account is given of their dual performance goals of financial performance ('financial sustainability') and social performance ('outreach'). While MFIs' social performance is directly aimed at poverty reduction, it is noteworthy that often they fail to address poverty (i.e., they fail to deliver outreach). The aim of the paper is to answer the following research question: Why have microfinance institutions (MFIs) failed to address poverty? In order to establish the reason, the first step is to look at how the MFIs are managed and controlled, i.e. to examine MFIs' corporate governance literature. This critical literature review was conducted using systematic on-line searches in the databases Scopus and Web of Knowledge; the main key words used were microfinance, gender, corporate governance and performance. The unconvincing nature of the findings of a review of the corporate governance literature suggests that another factor should be taken into consideration: that of gender; after all, MFIs are mainly used by women. The findings from reviewing the microfinance literature suggests that microfinance gender literature may explain why MFIs have not adequately addressed poverty, but this literature consists of a few studies only and further studies are needed. The literature on gender in general is more substantial, however. Some

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Section: Gender In the Microfinance Literaturesupporting

confidence: 88%

Microfinance institutions' failure to address poverty: A narrative critical literature review

Gudjonsson¹

2017

TVE

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“…They conclude that profitability and social efficiency follow their own track, while there is no apparent trade‐off between financial and social efficiency. Omri and Chkoundali () analyze financial and social performance of 16 Mediterranean MFIs and find that financial sustainability is associated with higher interest rates. At the same time, however, focusing on the poor does not seem to compromise financial performance.…”

Section: Financial Versus Social Sustainability: a Brief Reviewmentioning

confidence: 99%

Are Financial and Social Efficiency Mutually Exclusive? A Case Study of Vietnamese Microfinance Institutions

Lebovics

Hermes

Hudon

2015

Annals of Public and Cooperative Economics

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A major debate in microfinance focuses on the existence of a trade-off between the financial sustainability of microfinance institutions (MFIs) and their outreach to poor clients. This paper adds to this debate by analyzing whether financial and social efficiency are mutually exclusive in a context of implicit subsidies by the state and international donors. We use data from a sample of 28 Vietnamese MFIs and apply Data Envelopment Analysis (DEA) to identify the existence of a trade-off. Our analysis shows that for Vietnamese MFIs financial and social efficiency are not related. We interpret this as evidence for the fact that there is no support to believe that there is such a trade-off. Subsidies, based on which most Vietnamese MFIs currently operate, helps them to show high financial efficiency, while at the same time being able to attain their social goals. Nevertheless, this model may not be sustainable in the long-term. CEB

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“…They believe that while self-sustainability is desirable, it is not viewed as necessary (Omri and Chkoundali, 2011). Brau and Woller (2004) suggest that…”

Section: Performance Of Microfinance Institutionsmentioning

confidence: 99%

A meta-analysis examining the nature of trade-offs in microfinance

Reichert

2018

Oxford Development Studies

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Increasingly, microfinance institutions must balance both social and financial objectives, the so-called double bottom line. A growing number of studies have investigated the ability of MFIs to achieve both objectives simultaneously. From an initial sample of 3,299 articles, I synthesize 274 empirical findings from 61 studies to perform a meta-analysis on the relationship between financial and social performance. Findings suggest that studies using the Mix Market database are less likely to confirm trade-offs while articles that use efficiency indicators, employ an economic frontier methodology or are published in development journals are more likely to confirm evidence of performance trade-offs. Abstract Increasingly, microfinance institutions must balance both social and financial objectives, the so-called double bottom line. A growing number of studies have investigated the ability of MFIs to achieve both objectives simultaneously. From an initial sample of 3,299 articles, I synthesize 274 empirical findings from 61 studies to perform a meta-analysis on the relationship between financial and social performance. Findings suggest that studies using the Mix Market database are less likely to confirm trade-offs while articles that use efficiency indicators, employ an economic frontier methodology or are published in development journals are more likely to confirm evidence of performance trade-offs.JEL CODES: C12, G21, L25, L31

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The Convergence Between Outreach and Financial Performance in Mediterranean MFIs: A Panel Data Analysis

Abstract: Microfinance, Outreach, Financial performance, Mediterranean MFI, Panel data, G21, G23, I30, R13,

Cited by 9 publications

References 12 publications

Microfinance institutions' failure to address poverty: A narrative critical literature review

Microfinance institutions' failure to address poverty: A narrative critical literature review

Are Financial and Social Efficiency Mutually Exclusive? A Case Study of Vietnamese Microfinance Institutions

A meta-analysis examining the nature of trade-offs in microfinance

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