Quality, quantity and financial sustainability of microfinance: Does resource allocation matter?

Mia, Aslam; Nasrin, Shamima; Cheng, Zhang

doi:10.1007/s11135-015-0205-1

Cited by 25 publications

(16 citation statements)

References 32 publications

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“…Microfinance operations are labour intensive in nature and requires large number of employees to run the programs (Mia et al 2015). Not only that these employees collect loan installments from village to village, but also collect tiny savings from their depositors.…”

Section: Dependent and Independent Variablesmentioning

confidence: 99%

Microfinance and savings among the poor: evidence from Bangladesh microfinance sector

2016

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Despite rapid financial development, the coverage of the formal banking sector and population holding deposit accounts in Bangladesh (53.7 %) is still below the global average (62 %). As a consequence, Micro Finance Institutions (MFIs) have started providing financial services to these large section of people who have little access to finance otherwise. This paper examines empirically the impact of MFIs on the savings of poor in Bangladesh using the data from Microcredit Regulatory Authority database. The sample comprises 719 MFIs with data over the period, 2007-2012. The results show that MFI numbers and number of branches are positively associated with saving in the sector, which supports the institutional savings theory that posits that availability of financial institutions shapes saving behavior of people. Also, number of employees and number of borrowers positively affect saving. These findings from a large database contributes to the literature on the impact MFIs on savings behavior.

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Section: Dependent and Independent Variablesmentioning

confidence: 99%

Microfinance and savings among the poor: evidence from Bangladesh microfinance sector

2016

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“…Based on previous research, there are various aspects involved in achieving IMFI sustainability. These include financial, social and spiritual intermediation (Wediawati, Effendi, Herwany, & Masyita, 2018), the implementation of good governance to maintain the financial sustainability of IMFIs and minimise the various risks that exist (Kassim, Hassan, & Kassim, 2018), organisational and social performance (Bouljelbene & Fersi, 2016), a solid overall performance in order to sustain the institution financially and operationally as well as ensure progress and growth (Ascarya, 2014), the financing structure in place (Bayai & Ikhide, 2016), outreach to the poor (Kipesha & Zhang, 2013), greater capital intensity and a higher number of employees (Mia, Nasrin, & Cheng, 2016), monitoring cost, regulation and supervision (Nabi & Zouari, 2013), social capital and spiritual wellbeing (Rahman, Al Smady, & Kazemian, 2015), and service quality (Nurfadilah, Samidi, & Subagja, 2018).…”

Section: Previous Studymentioning

confidence: 99%

Modeling Sustainability Model of Islamic Microfinance Institutions

Sari

Cokrohadisumarto

2019

JIMF

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Islamic microfinance institutions (IMFI) - such as the Baitul Maal wat Tamwil (with cooperative legal entities) that have been established in Indonesia - as part of the shariah-compliant financial industry sector (part of the halal sector) - need to be maintained their sustainability so as to encourage efforts to eradicate poverty and promote economic growth. In observing the sustainability of BMT, studies involving aspects of human quality that carry out internal activities are rarely examined in other studies. Therefore, the purpose of this stud is to create a model that is useful for predicting the sustainability of IMFI especially BMT based on variables that are considered important, namely; financing growth, Islamic human capital, fraud, and Islamic leadership. The model was analyzed using multiple regression analysis based on the stepwise method. Primary data (cross-sectional) taken in 2019 using questionnaires consisting of 105 respondents from the administrators and managers of BMTs in Semarang and Pekalongan Residency areas. We found that only two variables have a significant influence on the sustainability of Islamic microfinance institutions, these variables are financing growth and Islamic human capital. The results of the study can be used by practitioners to improve the performance of Islamic Micro Finance, especially BMT, through the distribution of funding in the context of economic improvement (especially micro-enterprise), spiritual strengthening for human resources owned, risk prevention, and appropriate leadership criteria. JEL Classification: G21, J24, Q01 Keywords: Islamic microfinance, Human capital, Sustainability, Model

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“…Table 2 shows evidence of multicollinearity between some of the independent variables, which is an issue associated with panel data models. [33] To overcome the multicollinearity among the explanatory variables of ALOS and BTR, and among the control variables of BED, ADM, and PD and their possible effects, they are separately introduced in the generalized method of moments (GMM) estimation. Hence, to investigate the determinants of BOR, the following static panel data model is considered:…”

Section: Specification Of Variablesmentioning

confidence: 99%