Financial Intermediation by Microfinance Banks in Rural Sub-Saharan Africa: Financial Intermediation Theoretical Approach

Premised on Meta analysis of financial intermediation theory by Gurley and Shaw (1960), Leland Pyle (1977), Diamond Dybvig (1983), Allen Santomero (1996), Scholtens van Wensveen (2000), the main purpose this study is to test for predictive power each dimensions market penetration quality services inclusion poor microfinance banks in rural sub-Saharan Africa grounded theory. This adopted a cross-sectional research design data were collected from 400 households located Uganda. The analyzed using ordinary least square hierarchical regression (OLS) SPSS (statistical packages social sciences) generate explanatory based coefficient determination (R²). In addition, results variances (ANOVA) also generated establish differences perceptions towards being financially included through intermediation. revealed that as significantly explains 22 percent variation Additionally, when individual effects considered, both had significant positive Accordingly, our contributes recommends specific policies toward role intermediaries deepening, especially where there are limited presence traditional banking structures serve unbanked households.