2019
DOI: 10.5296/ijafr.v9i1.14405
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Effect of Regulation on Outreach of Microfinance Institutions in Ghana

Abstract: Microfinance institutions (MFIs) play an important role in enhancing the growth potential of small businesses. However, while regulation ensures that MFIs are financially sustainable, compliance compels them to make large-sized loans to wealthy clients in order to reduce the risk of lending and minimize administrative costs, a situation that compromises their main goal of reaching out to the poor. The study therefore, examined the effect of regulation on breadth and depth of outreach by microfinance institutio… Show more

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Cited by 4 publications
(3 citation statements)
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“…Various academic studies have tried to document the relationship between regulation and mission drift. Quartey and Kotey (2019) found a positive relationship between regulation and the breadth of outreach (measured by the number of active clients). According to the study, the relationship is most likely enhanced by the increased confidence clients have in well-regulated mfis.…”
Section: Regulation Of Mfismentioning
confidence: 89%
“…Various academic studies have tried to document the relationship between regulation and mission drift. Quartey and Kotey (2019) found a positive relationship between regulation and the breadth of outreach (measured by the number of active clients). According to the study, the relationship is most likely enhanced by the increased confidence clients have in well-regulated mfis.…”
Section: Regulation Of Mfismentioning
confidence: 89%
“…However, farmers need MFIs to obtain their farming capital. In Ghana, microfinance products were recommended to develop local smallholder cocoa plantations (Quartey and Asamoah, 2018). Furthermore, the Bank of Ghana encouraged the establishment of MFIs, especially in rural areas.…”
Section: Sustainability Of a Smallholder Cocoa Plantation In The Lega...mentioning
confidence: 99%
“…However, since the results were based on descriptive statistics analysis only which cannot sufficiently explain the relationship between variables, the findings are not reliable to inform decision making. Quartey and Kotey (2019) investigated the effect of financial regulation on MFIs outreach in Ghana. The mixed methods design was applied to study 88 MFIs where quantitative methodology was applied for 55 MFIs while qualitative methodology was applied on 33 MFIs.…”
Section: Financial Regulation and Sustainability Of Microfinance Inst...mentioning
confidence: 99%