Microfinance: A Comprehensive Review of the Existing Literature

Brau, James C.; Woller, Gary M.

doi:10.57229/2373-1761.1074

Cited by 300 publications

(59 citation statements)

References 88 publications

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“…On the other hand, the critical roles of donors, beneficiaries, and supervisors help achieve the program’s success and sustainability. Donors have an important role in channeling funds to institutions [ 26 , 60 , 89 , 90 ]. Beneficiaries are essential stakeholders because Islamic Social Finance programs aim to improve the beneficiaries’ quality of life [ 6 , 14 ].…”

Section: Resultsmentioning

confidence: 99%

“…The more funds raised, the more allocated amount given for the welfare of the beneficiaries. The effort is to achieve the welfarist paradigm in sustainability, proven by the increasing number of beneficiaries [ 26 ]. Islamic Social Finance institutions also play an essential role in encouraging the involvement of donors to pay the funds.…”

Section: Resultsmentioning

confidence: 99%

“…In Islamic Social Finance institutions, aspects of planning and human resources have the highest scores in achieving success and sustainability in programs A and B. The planning aspect relates to how Islamic Social Finance institutions plan programs carefully by developing short-term and long-term strategies and formulating risk mitigation [ 26 , 60 ]. The institutions are also responsible for planning an exit strategy to create financial self-sufficiency for beneficiaries and eliminate dependence on constant assistance.…”

Section: Resultsmentioning

confidence: 99%

“…Based on Brau et al [ 26 ], there are two paradigms in sustainability: Institutionalist and welfarist. Institutionalist refers to financial self-sufficiency, where the provision of services for the poor depends on the institution’s sustainability closely related to the institution’s ability to obtain funds continuously.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Therefore, the Islamic Social Finance program is not only directed at the success of improving the quality of life of beneficiaries so that they can get out of the poverty but also at the sustainable quality of life. Conceptually, in Brau et al [ 26 ], there are two paradigms in sustainability, namely, institutionalist and welfarist paradigms. The institutionalist paradigm considers that sustainability is closely related to the ability of institutions to obtain funds so that they can be independent and not dependent on others.…”

Section: Introductionmentioning

confidence: 99%

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Toward developing a sustainability index for the Islamic Social Finance program: An empirical investigation

et al. 2022

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Several previous studies state that the Islamic Social Finance program has not fully succeeded in creating prosperity, and there are no definite measurements to show the sustainability impact of the program. Thus, a measurement is needed to analyze various aspects in achieving the success and sustainability of Islamic social finance programs. This study developed an index for performance evaluation with an emphasis on the success and sustainability of the Islamic Social Finance program. The study used the Analytical Network Process to determine and analyze priority components. Furthermore, the Multistage Weighted Index method was used to calculate the final index score. The index was built by taking into consideration various factors, stakeholders, aspects, and indicators. This study indicates that aspects of funding contribution from donors (0.22), involvement of donors in giving advice (0.99), and controlling of supervisor (0.08) are priority aspects in the success and sustainability of the program. An empirical investigation was performed on three different programs in Indonesia: A, B, and C. Program A (0.81) and C (0.80) have succeeded in improving the beneficiaries’ quality of life to the level of economic resilience, although at a low level of sustainability (76–84.33). On the other hand, program B (0.73) is at the economic reinforcement and has not yet achieved sustainability. This index can be seen as a comprehensive tool for measuring the success and sustainability of the program at several levels.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Toward developing a sustainability index for the Islamic Social Finance program: An empirical investigation

et al. 2022

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Microfinance

Argandoña

2010

Finance Ethics

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Are microfinance institutions' financial performance gender driven? Evidence from Argentina

2021

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This paper studies the determinants of financial performance (return on assets, ROA) of 18 Argentine Microfinance Institutions (MFIs) from 2002 to 2018. We apply the random forest algorithm to predict the ROA of the Argentine MFIs, introducing two social variables to capture the depth of the outreach such as the female ratio and the average size of the loan portfolio divided by the GDP per capita. We also consider five other main explanatory variables, such as the size, efficiency, quality of loan portfolio, solvency, and productivity ratio, as well as macroeconomic variables. Although our results indicate that the quality of the loan portfolio and efficiency are the most important variables in predicting ROA, we find that social variables are also important; in particular, the female ratio, which is the third relevant predictor of ROA. In contrast, macroeconomic variables and the financial crisis turn out to be insignificant in our analysis.

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Microfinance: A Comprehensive Review of the Existing Literature

Cited by 300 publications

References 88 publications

Toward developing a sustainability index for the Islamic Social Finance program: An empirical investigation

Toward developing a sustainability index for the Islamic Social Finance program: An empirical investigation

Microfinance

Are microfinance institutions' financial performance gender driven? Evidence from Argentina

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