Financial sustainability and poverty outreach within a network of village banks in Cameroon: A multi-DEA approach

Piot-Lepetit, Isabelle; Nzongang, Joseph

doi:10.1016/j.ejor.2013.10.004

Cited by 86 publications

(53 citation statements)

References 43 publications

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“…Other contextual factors are found by Tchakoute‐Tchuigoua () who shows it may depend on the loan methodology used. Piot‐Lepetit and Nzongang () find evidence for the existence of a trade‐off, but only for a minority of MFIs in Cameroon.…”

Section: Discussionmentioning

confidence: 99%

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2018

Journal of Economic Surveys

114

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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 papers 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 and type of organization), their funding sources, the quality of organizational governance and the MFIs’ external context such as macro‐economic, 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.

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Section: Discussionmentioning

confidence: 99%

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2018

Journal of Economic Surveys

114

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“…Financial sustainability is affected by the capital structure factors of MFIs and deposit mobilization is one of them. By focusing on the financial structure as a whole to see its effects on financial sustainability, previous studies have documented that, for a standard microfinance institution, it is a big challenge to achieve financial sustainability due to high transaction and information costs [21][22][23]. Since MFIs like RUSACCOs have low transaction costs and no information asymmetry problems, we argue that sustainability can be achieved by mobilizing deposits that lower their transaction costs.…”

Section: Introductionmentioning

confidence: 87%

Effect of Deposit Mobilization on the Financial Sustainability of Rural Saving and Credit Cooperatives: Evidence from Ethiopia

Duguma

Han

2018

Sustainability

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Increasing institutional capital through deposit mobilization keeps the cost of capital low, thus leading to financial sustainability. However, little is known about how deposit mobilization affects financial sustainability. Using balanced panel data of 166 rural savings and credit cooperatives (RUSACCOs) from Ethiopia over the period of 2014-2016, we investigated the effect of deposit mobilization on financial sustainability. The results of the panel regression estimates showed that, among the deposits mobilization variables, the deposit to loan ratio, deposit to total asset ratio, the volume of deposits, and demand deposit ratio had a significant direct impact on financial sustainability. The fixed effect regression result for interest rate spread showed that an inverse relationship existed between the interest rate spread and financial sustainability. Furthermore, according to our robust fixed effect regression results, among the control variables, the age of the institution and inflation rate affects financial sustainability. Contrary to our expectations, the number of members and the percentage of woman members were not significant. This may be attributed to the fact that some members were inactive for a long period. We suggest that RUSACCOs should focus on deposit mobilization specifically on demand deposits and keep the interest rate spread narrower to ensure their sustainability.

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“…The growing competition has resulted in pushing the production possibility frontier outward, increasing the outreach and sustainability that can be achieved (Manos and Yaron, 2009). There has been considerable research effort into measuring MFI efficiency (e.g., Nghiem et al, 2006;Paxton, 2007;Gutiérrez-Nieto et al, 2007;Gutiérrez-Nieto et al, 2009;Hermes et al, 2011;Servin et al, 2012: Piot-Lepetit andNzongang, 2014;Wijesiri et al, 2015), but very few empirical studies explore productivity dynamics (e.g., Bassem, 2014). This may indicate the greater difficulty of finding time series data for individual MFI.…”

Section: Introductionmentioning

confidence: 98%

Productivity change of microfinance institutions in Kenya: A bootstrap Malmquist approach

Wijesiri

Meoli

2015

Journal of Retailing and Consumer Services

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Financial sustainability and poverty outreach within a network of village banks in Cameroon: A multi-DEA approach

Cited by 86 publications

References 43 publications

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Effect of Deposit Mobilization on the Financial Sustainability of Rural Saving and Credit Cooperatives: Evidence from Ethiopia

Productivity change of microfinance institutions in Kenya: A bootstrap Malmquist approach

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