In this paper, we analyse the main factors explaining profitability (ROA) of Microfinance Institutions (MFIs) in Peru from 2011 to 2107. We apply three wrapper techniques asample 168 Peruvians MFIs and 69 attributes obtained MIX Market database. After running algorithms M5?, knearest neighbours (KNN) Random Forest, find that M5? algorithm provides best fit for predicting ROA. Particularly, key ...

The purpose of this study was to determine the role microfinance institutions in empowering small and medium-sized communities. SMEs really need institutions, especially terms funds expand markets develop their businesses, so as make a large contribution national economy. MFIs has been tested, survived economic crisis even strengthened. MSMEs are business units where Indonesian economy far reli...

Muslim-majority countries do not use formal financial services (Honohon 2007).1 Even when financial services are available, some people view conventional products as incompatible with the financial principles set forth in Islamic law. In recent years, some microfinance institutions (MFIs) have stepped in to service low-income Muslim clients who demand products consistent with Islamic financial ...

specialist microfinance institutions (MFIs). The Central Bank of Sri Lanka (CBSL) has traditionally pursued an active "developmental" role in the microfinance sector, although this has been changing. It should further reduce its developmental activities by diluting its ownership of regional development banks and taking a less hands-on role in project implementation. Conversely, it would be appr...

This paper examine the efficiency of microfinance institutions (MFIs) in WAEMU (West African Economic and Monetary Union). Using DEA (Data Envelopment Analysis), we calculate technical scores a sample 80 savings credit cooperatives 2014. We find higher levels for social efficacy than financial efficiency. The comparative analysis effectiveness according to country origin institution shows that ...

Microfinance is a banking market in which operating costs are high, while non-performing loans (NPLs) rates low. While the existing literature tends to explain that high arise from provision of small loans, we argue excessive efforts control loan losses can also be contributing factor. Therefore, this article investigates relationship between NPLs and cost efficiency microfinance institutions (...

The costs and benefits of subsidized microfinance are still controversial. We utilize a cost-function estimation approach that accounts for the double bottom line (social financial) institutions (MFIs) to evaluate how subsidies affect both cost efficiency risk mission drift. control endogenous self-selection into business models credit-only versus credit-plus-deposit. Our results suggest MFIs s...

For microfinance institutions (MFIs) with double bottom line objectives and trade-offs, the optimal loan size can be determined by using a combination of Markovian Chains transition probabilities expected cash flows. Progressive lending may safe over range sizes, beyond which rational borrower would indulge in strategic default. This sizes depend on characteristics (risk-taking, self-confidence...