Financial Efficiency and Social Impact of Microfinance Institutions Using Self-Organizing Maps

Louis, Philippe; Seret, Alex; Baesens, Bart

doi:10.1016/j.worlddev.2013.02.006

Cited by 117 publications

(96 citation statements)

References 25 publications

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“…Socially interested investors seek to evaluate MFIs, since they are concerned about credit being diverted to less poor customers (Louis et al, 2013) or about the availability of credit causing adverse social effects in terms of heightened customer debt (Schicks, 2014). Problems related with microfinance have already been reported in various locations: in India, an increase in customer poverty due to excess debt has been observed (Guérin, Roesch, Venkatasubramanian, & Kumar, 2013); in Kenya, higher interest rates charged to customers are associated with higher default rates in communities (Kodongo & Kendi, 2013); in Ghana, heightened customer debt due to the population's lack of financial knowledge and loans without any productive purpose have been reported (Schicks, 2014).…”

Section: Mfi Social Performancementioning

confidence: 99%

“…In the context of microfinance, the indicators normally used to calculate financial performance are: return on assets (ROA), return on net equity (ROE), operational self-sufficiency and financial self-sufficiency (Strøm, D'Espallier, & Mersland, 2014), profitability, the level of MFI debt (Louis et al, 2013), the ratio between expenses and financial revenues, and the MFI asset portfolio (Sanfeliu, Royo, & Clemente, 2013).…”

Section: Mfi Financial Performancementioning

confidence: 99%

“…In the 1960s and 1970s, some initiatives failed because they could not deal with the high costs of providing credit to the poorest and ended up channeling resources to customers that were not so poor (Louis et al, 2013). With increased efficiency, it is hoped that small MFIs can reduce their dependency on subsidies and donations, as well as surviving the competition with large banks, which have recently begun to participate in the microfinance market (Hermes & Lensink, 2011;Kent & Dacin, 2013).…”

Section: Mfi Efficiencymentioning

confidence: 99%

“…Among the factors explored, the following bear mentioning: the subsidy effect (D'Espallier, Hudon, & Szafarz, 2013), the relationship between social orientation and efficiency (Louis, Seret, & Baesens, 2013), the macroeconomic context (Ahlin, Lin, & Maio, 2011), and the level of MFI governance (Hartarska, 2005).…”

Section: Introductionmentioning

confidence: 99%

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The relationship between the performance and legal form of microfinance institutions

Costa

2017

Rev. contab. finanç.

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This paper investigates the relationship between the legal forms adopted by microfinance institutions (MFIs) and their performance within three scopes: financial performance, social performance, and efficiency in resource allocation. The MFIs studied are classified into four groups: banks, non-governmental organizations, cooperatives, and a fourth group formed of for-profit institutions not characterized as banks, made up of non-bank financial institutions (NBFIs) and rural banks. The data used are annual and cover the six years from 2007 to 2012. The quantitative regression model with panel data was used together with dummy variables to compare between the four groups of legal forms, except for the group made up of NBFIs and rural banks, which was not represented by any dummy variable. 304 MFIs from 59 countries made up the sample. In the study it was observed that larger MFIs have higher profits, higher returns, and higher operational self-sufficiency rates than smaller MFIs, indicating that MFI growth could enable consolidation in the microfinance market. The results also indicate that for smaller MFIs the way to consolidate and improve the indicators could be through assimilating or merging with other MFIs. It was also noted that non-bank financial institutions and rural banks are able to serve more customers and that cooperatives provide smaller loans, causing a bigger social impact, and that they obtain higher returns and profits. The results indicate that these legal forms may be the most appropriate for the microfinance market.

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Section: Mfi Social Performancementioning

confidence: 99%

Section: Mfi Financial Performancementioning

confidence: 99%

Section: Mfi Efficiencymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The relationship between the performance and legal form of microfinance institutions

Costa

2017

Rev. contab. finanç.

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“…Naopak nízká míra transparentnosti u MFIs vede ke kompromisu mezi vysvětlovanými proměnnými. Louis et al (2013) aplikuje pro stejný záměr odlišnou metodiku, která má odhalit případné diskrepance mezi sociální a fi nanční efektivností. Metoda SOM (Self-Organizing Maps), aplikovaná na vybraném jednoletém vzorku dat, poukazuje také na významnou pozitivní reciprocitu mezi sociálními a fi nančními cíli.…”

Section: Mission Driftunclassified

Microfinance Revolution: Controversies and Challenges

Janda¹,

Zetek²

2015

Politicka ekonomie

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ÚvodVlády stejně jako mezinárodní organizace dlouhodobě usilují o snížení počtu obyvatel žijících na hranici životního minima nebo pod ní. Kromě dotačních či sociálních programů pro nízkopříjmové obyvatele se již více než třicet let prosazuje fi nanční pomoc založená na mikrofi nančních službách. Původní záměr mikrofi nančních institucí (MFIs) nabízet nízko objemové úvěry začínajícím podnikatelům s nedostatečnou úvěrovou historií nebo chybějícím věcným zajištěním se postupně rozšířil na další produkty, jako jsou mikropojištění, spoření nebo platební styk. V roce 2012 spravovaly MFIs po celém světě úvěry 89 milionům klientů v hodnotě téměř 99 mld. USD (mixmarket.org). Ačkoliv podle hodnotící zprávy Human Development Report za rok 2013 se podíl těch nejpotřebnějších "core poor" relativně snižuje, do současnosti je evidováno přes 1,56 mld. obyvatel, kterým se stále nedaří vymanit se z bludného kruhu chudoby.Přestože jen za období 1990-2014 je ve Web of Knowledge evidováno 440 vědec-kých studií obsahujících v názvu slova microfi nance nebo microcredit a 835 studií zmiňujících tato slova v obsahu dokumentu, nenalezli jsme žádnou publikaci věnova-nou mikrofi nancím v časopisech Politická ekonomie, Prague Economic Papers nebo Finance a úvěr. Cílem tohoto přehledového článku je proto zaplnit tuto informační mezeru v česky psané akademické literatuře a zároveň navázat na předchozí přehle-dové studie Matin et al. (2002), Woller (2002 nebo Brau a Woller (2004) se zaměře-ním na základní vývojové tendence a kontroverzní témata mikrofi nancí ve světové akademické literatuře. Ačkoliv mikrofi nanční model aplikovaný v rozvojových zemích se v České republice (ČR) prakticky nevyskytuje, představuje ČR společně s dalšími vyspělými státy důležitý zdroj fi nancování poskytovatelů mikrofi nančních služeb. Častokrát se dávají mikrofi nance do souvislosti s historickým vznikem družstevních záložen, které měly v počátcích za cíl fi nancovat podobně jako MFIs obchodní aktivity svých členů ve skupině na principu kolektivního ručení. Tento záměr se ale postupně u družstev-* Práce na tomto článku byla podporována granty P402/11/0948 GAČR a 15-00036S GAČR. Karel Janda potvrzuje výzkumnou podporu získanou jako Affi liate Fellow na CERGE-NHÚ a během jeho dlouhodobých výzkumných pobytů na

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Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2019

Contemporary Topics in Finance

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Microfinance institutions (MFIs) generally aim at improving the access of the poor to financial services while at the same time being financially sustainable. But what do we know about how MFIs reach and combine these two goals? We carry out a systematic review of close to 170 articles discussing the determinants of the financial and social performance of MFIs. The review shows that the most important determinants addressed in the literature are MFI characteristics (size, age, type of organization), their funding sources, the quality of organizational governance and the MFIs' external context such as macroeconomic, institutional and political conditions. The evidence on these issues is rather mixed.Moreover, the direction of the relationship between these drivers and MFI performance depends on the context, particularly the country-specific context. Finally, there is a lack of consensus in the literature on the measurement of financial and social performance. Due to the complexity of the concept, we argue that social performance should only be assessed by using a multidimensional perspective. This can be done either by applying recent and holistic social performance measures such as the SPI4, or at least by using a combination of proxies, such as outreach, gender and rural measures. Burzynska, K., & Berggren, O. (2015). The impact of social beliefs on microfinance performance.

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Financial Efficiency and Social Impact of Microfinance Institutions Using Self-Organizing Maps

Cited by 117 publications

References 25 publications

The relationship between the performance and legal form of microfinance institutions

The relationship between the performance and legal form of microfinance institutions

Microfinance Revolution: Controversies and Challenges

Determinants of the Performance of Microfinance Institutions: A Systematic Review

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