Microfinance Institutions' Mission Drift in Macroeconomic Context

Xu, Shengyuan; Copestake, James; Peng, Xinman

doi:10.1002/jid.3097

Cited by 44 publications

(41 citation statements)

References 23 publications

(89 reference statements)

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“…Ahlin et al (2011) argue that MFIs in countries with more developed financial systems show better financial performance. This is corroborated by the findings of Xu et al (2016). These studies suggest that the formal financial and microfinance sector are complements rather substitutes.…”

Section: The Domestic Financial Systemsupporting

confidence: 68%

“…This is corroborated by the findings of Xu et al . (). These studies suggest that the formal financial and microfinance sector are complements rather substitutes.…”

Section: Discussionmentioning

confidence: 97%

“…() and Xu et al . () find a positive association between the macro‐economic environment and the financial performance of MFIs, Campbell and Rogers () find the opposite.…”

Section: Discussionmentioning

confidence: 99%

“…The results of their findings are mixed. Whereas Ashta and Fall (2012), Sainz-Fernandez et al (2015) and Xu et al (2016) find a positive association between the macro-economic environment and the financial performance of MFIs, Campbell and Rogers (2012) find the opposite.…”

Section: Macro-economic Conditionsmentioning

confidence: 97%

See 3 more Smart Citations

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2018

Journal of Economic Surveys

113

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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: The Domestic Financial Systemsupporting

confidence: 68%

“…This is corroborated by the findings of Xu et al . (). These studies suggest that the formal financial and microfinance sector are complements rather substitutes.…”

Section: Discussionmentioning

confidence: 97%

“…() and Xu et al . () find a positive association between the macro‐economic environment and the financial performance of MFIs, Campbell and Rogers () find the opposite.…”

Section: Discussionmentioning

confidence: 99%

Section: Macro-economic Conditionsmentioning

confidence: 97%

See 2 more Smart Citations

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2018

Journal of Economic Surveys

113

View full text Add to dashboard Cite

show abstract

“…The results of their findings are mixed. Whereas Ashta and Fall (2012), Sainz-Fernandez et al (2015) and Xu et al (2016) find a positive association between the macroeconomic environment and the financial performance of MFIs, Campbell and Rogers (2012) find the opposite.…”

Section: Macroeconomic Conditionsmentioning

confidence: 99%

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2019

Contemporary Topics in Finance

View full text Add to dashboard Cite

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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Quantifying the Managerial Ability of Microfinance Institutions: Evidence from Latin America

Banna

Rana

Ismail

et al. 2019

J of Intl Development

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This paper aims to quantify the managerial ability of the microfinance institutions (MFIs) in Latin America and the Caribbean countries. Drawing on data for 419 MFIs in 24 Latin America and the Caribbean countries between 2003 and 2014, we find that MFIs' managers with higher managerial ability outperform MFIs' managers with lower managerial ability. The study also finds that managers in Brazil (Trinidad and Tobago) have higher (lower) ability and are more (less) efficient. The findings help policymakers and regulators to propose with policy recommendations for long‐term sustainability of MFIs by estimating and decomposing the ability of the managers. © 2019 John Wiley & Sons, Ltd.

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Microfinance Institutions' Mission Drift in Macroeconomic Context

Cited by 44 publications

References 23 publications

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Quantifying the Managerial Ability of Microfinance Institutions: Evidence from Latin America

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