Determinants of economic growth in the event of sustained war: case of Sierra Leone

Kargbo, Mohamed; H, An; Li, Zhuwei; Gupta, Rakesh

doi:10.1504/ijbg.2017.084348

Cited by 1 publication

(1 citation statement)

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“…Assessing the financial performance of the MFBs, it is observed that higher LDR was associated with periods when the NRB decreased, especially in . Also, between 1994and 1999 as well as 2001 and 2007, there was a significant decline in licensed MFBs but LDR increased probably due to aid donors from the World Bank and African Development Bank (AfDB) which were disbursed through the MFBs (Kargbo, 2012). It is also observed that the MFBs maintained high LQR between 1992 and 2015, but the LQR ranged from 23.57% to 36.27% between 2016 and 2018 probably due to the 30% officially recommended by the CBN to curtail excess liquidity among the microfinance banks (CBN, 2020).…”

Section: Summary Statisticmentioning

confidence: 99%

The Effect of Microfinance Banks on Poverty Reduction in Nigeria

Onyele

Onyekachi-Onyele

2020

Management Dynamics in the Knowledge Economy

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The nexus between microfinance banking and poverty reduction is well documented in banking and finance literature. As a poverty reduction strategy, the microfinance initiative is expected to create room for financial accessibility to the economically active poor people. Consequently, this study estimated the effect of microfinance banks’ (MFBs) on poverty reduction in Nigeria from 1992 to 2018 using the Autoregressive Distributed Lag (ARDL) approach to regression analysis. With a VAR lag order selection of two, the ARDL bounds test revealed that the poverty rate and MFBs activities were bound by a long-run relationship. The long-run estimates suggested that the MFBs loans-to-deposit ratio and liquidity ratio caused poverty reduction in the long-run. On the other hand, the short-run estimates indicated that the MFBs were unable to ensure poverty reduction within a short period, though all the variables exhibited significant coefficients within one year. These findings imply that the ability of MFBs to reduce poverty takes a long period.

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Section: Summary Statisticmentioning

confidence: 99%