Financial Performance of Microfinance Institutions in ASEAN-5 Countries: An Application of Data Envelopment Analysis (DEA)

Difficulties of commercial banks to serve the poor demonstrates their failure supply essential capital less fortunate sector in society. Establishment microfinance institutions (MFIs) with distinctive characteristics outreach and financial sustainability provides alternative tools for global poverty alleviation. Performance MFIs is one most crucial aspects assess effort provide continuous services poor. The original objective was eradicate as a social objective. However, commercialization 1990s led independence, they had previously been funded by government. Therefore, it not appropriate rely performance exclusively based on They must align ensure long-term stability delivering products. This study seeks determine efficiency ASEAN-5 countries. sample made up data from 168 Southeast Asia, which span five countries between 2011 2017. A nonparametric Data Envelopment Analysis (DEA) method used score. discovered are financially efficient thus enable maintain operations over long term. concluded order continue offering term, be stable.