Microfinance Products and Service Quality in Financial and Quasi‐Financial Institutions in <scp>C</scp>hina

Chan, Sow Hup Joanne; Lin, Jason

doi:10.1002/jsc.2008

Cited by 7 publications

(3 citation statements)

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“…It is aimed at alleviating poverty through involving economically and socially disadvantaged citizens in income-generating activities. This initial idea was later developed into microfinancing when more innovative products were developed to meet the growing market demands (Chan & Lin, 2015;Cull et al, 2011). Microfinance institutions (MFIs) are said to have an important role in poverty reduction as they can stimulate economic and social development by providing quality financial services to disadvantaged population groups.…”

Section: Introductionmentioning

confidence: 99%

The Influence of Institutional Characteristics on Financial Performance of Microfinance Institutions in the OIC Countries

Ibrahim¹,

Ahmed²,

Minai³

2018

Economics &Amp; Sociology

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Microfinance institutions (MFIs) proved to be a powerful tool for financial inclusion through developing entrepreneurial activities in rural areas. MFIs provide small-scale loans to the poor who have no access to traditional banking and financial system. However, in the pursuit to meet their social obligation, MFIs need to be financially sustainable and this sustainability largely depends on the institution's characteristics. This study investigates the influence of MFIs' characteristics on their financial performance, using the panel dataset of 57 microfinance institutions from the member countries of the Organisation of Islamic Cooperation (OIC). The empirical results show that, as expected, the interest rate charged and the period of existence in the market have a significant positive relationship with the financial performance of MFIs. The results also indicate that credit union and cooperatives, non-bank financial institutions and non-governmental organisations outperformed their counterparts financially. Therefore, the study concludes that charging a high rate of interest may improve institutions' financial self-sufficiency; however, it is unable to secure MFIs' profit maximization strategy. Conversely, not-for-profit MFIs can ensure their financial viability while serving the poorest clients which is the prime goal of any microfinance program. Hence, MFIs can earn profits, but within limits, complying with their social promise at the same time.

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Section: Introductionmentioning

confidence: 99%

The Influence of Institutional Characteristics on Financial Performance of Microfinance Institutions in the OIC Countries

Ibrahim¹,

Ahmed²,

Minai³

2018

Economics &Amp; Sociology

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“…Microfinance institutional development has been influenced by global pressures, interinstitutional contradictions, and intrainstitutional conflicts in logics (Ashta, 2019). The regulatory support (Britzelmaier, Kraus, & Xu, 2013), the control of corruption, the need for competition, and the use of rating agencies (Halouani & Boujelbène, 2015), credit bureaus (Shankar, 2015), or even “mystery shopping” (Chan & Lin, 2015) can all help in the supervision and development of microfinance organizations. However, inappropriate regulation can push microcredit organizations to increase outreach and inclusion but with a purely commercial logic (Khachatryan & Avetisyan, 2017).…”

Section: Research Directionsmentioning

confidence: 99%

Microfinance and financial inclusion: Challenges and opportunities

Milana

Ashta

2020

Strategic Change

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Lifting the poor from poverty through financial and social inclusion is the ultimate target and raison d'etre of microfinance. As the most recent literature has recognized, microfinance institutions have economically worked well in operating microcredit, but the aim of raising the living standard of their indigent clients has not been generally met. The expected encouragement of entrepreneurship from microcredit is still not detected in the empirical data, let alone women's social integration in working activities. The articles collected in this thematic issue bring new empirical elements of discussion pointing to many aspects of the social divides and the inequalities that plague the emerging countries. This overview article recalls the main questions that are still open and the framework of topics discussed in this thematic issue.

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“…In addition to this, the results of this study will provide the information to what extent the technology is relevant for the productivity increase in MFI sector. Due to the high relevance of the technology for the productivity improvement, as Chan and Lin (2015) also suggested, MFIs should particularly invest in better use of ICT for more effective monitoring of the old client and new client acquisition, better service delivery and better assets management. Accordingly, MFIs could boost their productivity and reach higher level of the scale efficiency to meet their goals and higher financial performance.…”

Section: Policy Implications and Recommendationsmentioning

confidence: 99%

Productivity Change of Microfinance Institutions in Bosnia and Herzegovina

Efendic

Hadziahmetovic

2019

South East European Journal of Economics and Business

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The main aim of this paper is to investigate the productivity changes of microfinance institutions (MFIs) in Bosnia and Herzegovina (BiH) during and after the recent financial crisis. The study covers the period starting from 2008 until 2015. Using the Malmquist Productivity Index (MPI) over the sample of 10 MFIs and a balanced panel dataset of 80 observations, this study explores technical and technological change as well as total factor productivity (TFP) change. The empirical findings indicate a decline in TFP in most of the analyzed periods with an average decrease of 2.5%. The study reveals an average technological decline in the industry of 1.7%, while technical efficiency change is recorded at the level of -0.8%. Overall, crisis efficiency recovery occurred during the period between 2009 and 2013. However, due to technological inefficiencies, average total factor productivity change remains negative. Hence, policy makers need to enhance the technological progress in order to meet their strategic objectives in BiH MFIs.

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Microfinance Products and Service Quality in Financial and Quasi‐Financial Institutions in China

Abstract: Microfi nance institutions (MFIs), and fi nancial and quasi-fi nancial institutions around the world, have increasingly provided loans to groups and to individuals

Cited by 7 publications

References 20 publications

The Influence of Institutional Characteristics on Financial Performance of Microfinance Institutions in the OIC Countries

The Influence of Institutional Characteristics on Financial Performance of Microfinance Institutions in the OIC Countries

Microfinance and financial inclusion: Challenges and opportunities

Productivity Change of Microfinance Institutions in Bosnia and Herzegovina

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