Developing an Index for the Measurement of Financial Sustainability of Microfinance Providers: A Theoretical Review

Measurement of financial sustainability is still an unresolved and debatable issue. Utilizing multi-dimensional structures, the Finanical Index essential in determining actual position. The capacity a microfinance institution (MFI) to operate sustainably by offering services certain populations that traditional institutions neglect can be used define sustainability. This study aims design indicator gauge institution's Due deficiencies present assessment, this paper's main focus on examining literature assessing MFI Additionally, first its type suggest thorough index takes into account both conventional measures (ROA & ROE) efficiency (OSS FSS) as components index. Principal Components Analysis (PCA) has been assign weight indicators develop will reflect accurate picture operational capability MFIs, which help reduce poverty empower women. health MFIs for long-term operation. limited providers. It enhanced including others factors such outreach, institutional environmental factors.