Microfinance has been developed as alternative solution for global poverty alleviation effort in the last 30 years. Microfinance institution (MFI) has unique characteristic wherein they face double bottom line objectives of outreach to the poor and financial sustainability. This study proposes a two-stage analysis to measure Islamic Microfinance institutions (IMFIs) performance by comparing the...

— With the rise in the number of for-profit microfinance institutions (MFIs), commentators are asking whether the sector benefits by MFIs having stronger profit orientations. We address this question by analyzing the relationship between interest rates and adopting the for-profit legal form, appointing private sector representation and traditional banking experience to advisory boards, and part...

Microfinance is defined as the provision of financial services to poor, disadvantaged and under-privileged members of society, particularly in developing countries. Since the success of the Grameen Bank in the late 1970s, microfinance has emerged as a sustainable and effective method of poverty alleviation and local financial development. Recent years have witnessed an unprecedented growth in t...

This study focuses on the supplemented strategies of microfinance institutions (MFIs), in which the MFI offers nonfinancial services, such as entrepreneurship related knowledge, in addition to financial services to impoverished borrowers at the bottom of the pyramid (BoP). We examine two contextual factors–foreign direct investment (FDI) and loan defaults–to better understand the relationship b...

We apply the non-parametric, unconditional, hyperbolic order- quantile estimator to appraise the relative efficiency of Microfinance Institutions in Africa in terms of outreach. Our purpose is to verify if these institutions, which must constantly try to strike a compromise between their social role and financial sustainability are operationally efficient. Using data on African MFIs extracted ...

In this paper we provide an analysis of credit risk management and the use of credit scoring among European MFIs. With this aim, we designed and sent a survey to the full set of known MFIs operating in Eastern and Western Europe. 58 MFIs completed the survey. We observe that the European microfinance industry has already dedicated substantial effort to risk management, noting that more than hal...

The aim of this article is to produce a comprehensive analysis of the performance of microfinance institutions (MFIs) in terms of repayment. We use 1629 loan observations to analyze with a probit the determinants of the repayment performance of borrowers of the BRAC, the BRDB and the Grameen Bank. We test for endogeneity of the size and duration of the loan in the determination of repayment and...

Since the early 1970s, with the formation of the Grameen Bank in Bangladesh by the eminent Mohammed Yunus, the microfinance movement has spread throughout the developing and developed world as a weapon in the fight against poverty. However, success of the Grameen model has not been followed by success in different economic and social settings. These failures have been due to several factors inc...

This study was carried out to understand the social performance of deposit taking and non-taking MFIs, determinants MFIs' personnel size their predictions, possible women borrowers MFIs consequences, transformation from nontaking taking. For this study, a sample 90 i.e. 10 each 9 countries, were randomly selected MIX Market data set. Descriptive statistics econometric models engaged in study. I...