The Impact of Governance and Institutional Quality on MFI Outreach and Financial Performance in Sub-Saharan Africa

Barry, Thierno; Tacneng, Ruth

doi:10.1016/j.worlddev.2013.12.006

Cited by 97 publications

(99 citation statements)

References 56 publications

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“…In recent years, with increasing commercialisation in microfinance, younger MFIs especially those regulated and commercial MFIs may focus on serving better‐off customers, thus having larger ALB as compared with older MFIs. Other literature has demonstrated a negative correlation between age of MFIs and financial performance (Hermes et al ., ; Mersland, Randøy, & Str∅m, ; Barry & Tacneng, ). This is consistent with the theory that younger MFIs disburse larger loans to wealthier customers in order to achieve better financial performance.…”

Section: Models and Empirical Resultsmentioning

confidence: 99%

Microfinance Institutions' Mission Drift in Macroeconomic Context

Copestake

Peng

2015

J of Intl Development

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We theoretically discuss the potential macroeconomic influences on microfinance institutions' (MFIs') depth of outreach and provide empirical evidence, using panel analysis, to investigate determinants of average loan balance (ALB) per borrower as a percentage of gross national income per capita, as a proxy indicator for poverty focus or depth of outreach. ALB is found to be positively associated with operational self‐sufficiency, a finding that is consistent with the mission drift hypothesis. But it is also positively associated with the shares in GDP of net foreign direct investment and domestic credit to the private sector. This suggests mission drift is not only associated with MFI‐specific factors but also influenced by macroeconomic context. Copyright © 2015 John Wiley & Sons, Ltd.

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Section: Models and Empirical Resultsmentioning

confidence: 99%

Microfinance Institutions' Mission Drift in Macroeconomic Context

Copestake

Peng

2015

J of Intl Development

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“…Tchakoute‐Tchuigoua () reports that for‐profit MFIs have even better social performance than NGOs. Barry and Tacneng (), finally, show stronger financial and social performance for NGOs using data from MFIs in a number of Sub‐Saharan African countries.…”

Section: Discussionmentioning

confidence: 99%

“…Chikalipa () finds a positive relationship between the lack of rules constraining business and MFI performance in sub‐Saharan Africa. Finally, Barry and Tacneng () argue that the link between institutional quality and MFI performance depends on the type of MFI. While a weak rule of law results in NGO superiority, stronger institutional quality may encourage banks to cater to more borrowers.…”

Section: Discussionmentioning

confidence: 99%

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Hermes

Hudon

2018

Journal of Economic Surveys

111

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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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“…Para a amplitude do alcance: total de empréstimos e número de clientes atendidos ou mutuários ativos (Barry & Tacneng, 2014;Bassem, 2009;Cull et al, 2007;Hartarska, 2005;Hartarska & Mersland, 2012;Hartarska & Nadolnyak, 2007;Mersland & Strøm, 2009;Meyer, 2002;Navajas et al, 2000;Quayes, 2012;Rosenberg, 2009). Para a profundidade do alcance: valor médio dos empréstimos (Barry & Tacneng, 2014;Hartarska & Nadolnyak, 2007;Kar, 2010;Luzzi & Weber, 2006;Luzzi & Weber, 2007;Mersland & Strøm, 2009;Quayes, 2012) e valor médio das operações.…”

Section: Desempenho Socialunclassified

“…Para a profundidade do alcance: valor médio dos empréstimos (Barry & Tacneng, 2014;Hartarska & Nadolnyak, 2007;Kar, 2010;Luzzi & Weber, 2006;Luzzi & Weber, 2007;Mersland & Strøm, 2009;Quayes, 2012) e valor médio das operações.…”

Section: Desempenho Socialunclassified

Mudanças regulatórias no microcrédito e desempenho financeiro e social de cooperativas de crédito no Brasil

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The Impact of Governance and Institutional Quality on MFI Outreach and Financial Performance in Sub-Saharan Africa

Cited by 97 publications

References 56 publications

Microfinance Institutions' Mission Drift in Macroeconomic Context

Microfinance Institutions' Mission Drift in Macroeconomic Context

Determinants of the Performance of Microfinance Institutions: A Systematic Review

Mudanças regulatórias no microcrédito e desempenho financeiro e social de cooperativas de crédito no Brasil

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