The main objective of this study is to analyze the relationship between the financial performance and scope of MFIs with independent variables such as: country environment, MFI size, expenses, and capital structure. The Structural Equations Modeling (SEM) was used to verify direct and indirect relationships. It was found that the effect of these independent variables shows through operating expenses. Additionally, it was found that in a country with high levels of corruption, absence of rule of law, and government inefficiencies, MFIs are less likely to achieve their objectives due to the high operating costs allocated to reaching the population with low income. These factors also explain the financial performance and scope of MFIs, implying that operating expenses explain two of the most important determinants of MFI mission bias. The originality of this work resides in the methodology employed, the construction of all indicators and use of the regulatory environment, and the institutional development variables to analyze MFIs.

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In this article, we analyze the way in which interest rates interact with financial performance in the MFI context. To that end, we use structural equation modeling, as it can measure both direct and indirect effects between variables. We found that interest rates are a significant mediator variable between financial performance and environment (corruption, the rule of law and government inefficiency), MFI size, and operating expense. The originality of this work lies in the methodology used. Although previous studies analyze the effect of interest rates on the financial performance of MFIs, our methodology captures the mediation effect of this variable. Finally, we state that interest rates play an essential role in the poverty-alleviating mission of MFIs, such that they are a significant indirect driver of financial performance.

Se analizan las diferencias en las tasas de interés entre las instituciones microfinancieras (IMFs) de algunos países de Latinoamérica, África, Europa del Este y Asia. Encontramos que los gastos operativos son factores esenciales en las tasas de interés de las IMFs. Además, se encontró que dichos gastos, el tamaño promedio del préstamo, el crecimiento del PIB y la efectividad en la gobernanza son factores clave para explicar por qué las tasas de interés son más altas en unos países que en otros. Como metodología se utilizó la modelación jerárquica lineal (HLM).