External Governance and Dual Mission in the African MFIs

Abstract

In spite of their external relation with MFIs, external governance mechanisms strongly affect the realization of the dual mission on microfinance.

Determinants of the Performance of Microfinance Institutions: A Systematic Review

“…() argue this may be due to lacking institutional frameworks, such as credit bureaus that may help MFIs sharing information about delinquent borrowers. In contrast, Halouani and Boujelbène () find that competition boosts financial performance, but has no impact on social performance of MFIs. Their study is based on a one‐country case, that is South Africa.…”

“…They refer to the existence and quality of financial regulation for MFIs, as well as to the existence of rating agencies and/or credit bureaus that also target MFIs. Most of these studies find that the regulatory environment has either no or a negative impact, especially on social performance (Hartarska and Nadolnyak, ; Mersland and Strøm, ; Ahlin et al ., ; Pati, ; Anku‐Tsede, ; Bakker et al ., ; Estapé‐Dubreuil and Torreguitart‐Mirada, ; Halouani and Boujelbène, ; Pati, ). This indicates that regulation of MFI may actually hamper rather than help them in providing their financial services to the poor in a cost‐efficient way.…”

Determinants of the Performance of Microfinance Institutions: A Systematic Review

“…McIntosh et al (2005) argue this may be due to lacking institutional frameworks, such as credit bureaus that may help MFIs sharing information about delinquent borrowers. In contrast, Halouani and Boujelbène (2015) find that competition boosts financial performance, but has no impact on social performance of MFIs. Their study is based on a one-country case, i.e.…”

Microfinance development in Armenia: Sectoral characteristics and problems

“…In this context, regulation is considered as the place where the dominant vision of what microfinance should be is defined (Halouani & Boujelbène, ). In the absence of a formal definition of microfinance (its target groups, amount of loans, duration of credit repayment, etc.…”

“…In microfinance, terms often considered universal such as "loan," "repayment," "interest rate," in fact take on a variety of local meanings; this can lead to intractable misunderstandings and the misuse of microcredit programmes (Guérin, Morvant-Roux, & Villarreal, 2013;Shipton, 2010). (Halouani & Boujelbène, 2015). In the absence of a formal definition of microfinance (its target groups, amount of loans, duration of credit repayment, etc.…”