An Overview of Microfinance

Gan, Christopher; Nartea, Gilbert V.; Xia, Judy Li

doi:10.1142/9789813147959_0001

Cited by 4 publications

(3 citation statements)

References 33 publications

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“…In addition to the financial services, they also provide social services (Iqbal et al , 2019). Microfinance became the messiah for the poor as they contribute to income, consumption and asset accumulation (Morduch and Haley, 2002; Latifee, 2003; Montgomery and Weiss, 2005; Duvendack et al , 2011; Gan et al , 2017). However, the effect varies based on poverty levels, gender and continued participation (Khandker, 2005; Razzaque, 2010; Islam, 2011).…”

Section: Introductionmentioning

confidence: 99%

Literature review on effect of microfinance institutions on poverty in South Asian countries and their sustainability

Gupta

Sharma

2021

IJOEM

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PurposeThe authors present a systematic literature review on microfinance institutions’ (MFIs) effect on poverty and how they can ensure their sustainability. The purpose of this article is to review the effect of MFIs on poverty in South Asian countries. The analysis and review of the selected corpus of literature also provide avenues for future research.Design/methodology/approachA total of 95 papers from 49 journals in 4 academic libraries and publishers were systematically studied and classified. The authors define the keywords and the inclusion/exclusion criteria for the identification of papers. The review includes an analysis of the selected papers that give insights about publications with respect to themes, number of themes covered in individual publications, nations, scope, methodology, number of methods used and publication trend.FindingsThe literature indicates the positive effect of microfinance on poverty but with a varying degree on various categories of poor. The relation between poverty and microfinance is, however, dependent on the nation under the scanner. While sustainability and outreach co-exist, their trade-off is still a matter of debate.Originality/valueThis is the first systematic literature review on MFIs’ effect on poverty in South Asian nations. Additionally, the authors discuss the literature on the trade-off between sustainability and outreach for MFIs.

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Section: Introductionmentioning

confidence: 99%

Literature review on effect of microfinance institutions on poverty in South Asian countries and their sustainability

Gupta

Sharma

2021

IJOEM

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“…There are currently around 3,700 MFIs, which provide collateral-free loans to 230 million customers in more than 100 countries (Gul et al, 2017). Given the scope, impact and outreach of MFIs, many efforts have been spent on understanding how MFIs overcome challenges where traditional banks have failed to do so (Morduch, 2013;Weaver, 2016;Gan et al, 2017).…”

Section: Related Literaturementioning

confidence: 99%

Are competitive microfinance services worth regulating? Evidence from microfinance institutions in Sub‐Saharan Africa

et al. 2019

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In recent years, there is increasing appetite for regulation of microfinance services after the 2008 financial crisis. Policy questions such as whether competitive microfinance institution (MFI) requires strong regulation to reduce, for example, credit risk or competition and regulation operate in the opposite direction, which each tends to dampen the effect of the other, are an empirical issue that this paper provides answers based on data on Sub‐Saharan Africa (SSA) for the period 1995–2015, utilizing panel data approaches. Finding from the study indicates that low competition increases credit risk among MFIs in SSA, which regulation helps reduce such behaviour. The effect of regulation on credit risk is conditional on the level of competition, at the first percentile of competition (imply more competition); regulation does not reduce credit risk behaviour of MFIs but does at competition level above the 25th percentile (imply less competition). Regulation, on the other hand, does not affect operational risk at any level of competition. These findings have implications for policy formulation on the regulation and operations of MFIs in SSA. Our findings suggest that the MFI industry could be regulated efficiently if policymakers develop policies targeted at reducing credit risk exposures of MFIs than their exposure to operational risk.

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“…Designed for the non-bankable entrepreneurs in mind, TEKUN was established to provide quick and easy access to financial aids for business start-ups or expansion that does not require collateral from the entrepreneurs. Since 2008, this institution has transformed from financing body to an entrepreneurial development agency by providing business opportunities, skills training and networking (Gan, Nartea, & Xia, 2017). This change was followed by the introduction of group-based microcredit scheme, also known as Teman TEKUN in 2015.…”

Section: Introductionmentioning

confidence: 99%

Access To Finance And Microenterprise Growth: Evidence From Microcredit Client In Urban Malaysia

Daud¹

2020

European Proceedings of Social and Behavioural Sciences

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An Overview of Microfinance

Abstract: Abstract

Cited by 4 publications

References 33 publications

Literature review on effect of microfinance institutions on poverty in South Asian countries and their sustainability

Literature review on effect of microfinance institutions on poverty in South Asian countries and their sustainability

Are competitive microfinance services worth regulating? Evidence from microfinance institutions in Sub‐Saharan Africa

Access To Finance And Microenterprise Growth: Evidence From Microcredit Client In Urban Malaysia

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