Financial Performance And Outreach

Author : Robert J. Cull,Aslı Demirgüç-Kunt,Jonathan Morduch
Publisher : World Bank Publications
Page : 51 pages
File Size : 47,7 Mb
Release : 2006
Category : Bank loans
ISBN : 9780601241637

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Financial Performance and Outreach by Robert J. Cull,Aslı Demirgüç-Kunt,Jonathan Morduch Pdf

Microfinance contracts have proven able to secure high rates of loan repayment in the face of limited liability and information asymmetries, but high repayment rates have not translated easily into profits for most microbanks. Profitability, though, is at the heart of the promise that microfinance can deliver poverty reduction while not relying on ongoing subsidy. The authors examine why this promise remains unmet for most institutions. Using a data set with unusually high quality financial information on 124 institutions in 49 countries, they explore the patterns of profitability, loan repayment, and cost reduction. The authors find that institutional design and orientation matter substantially. Lenders that do not use group-based methods to overcome incentive problems experience weaker portfolio quality and lower profit rates when interest rates are raised substantially. For these individual-based lenders, one key to achieving profitability is investing more heavily in staff costs-a finding consistent with the economics of information but contrary to the conventional wisdom that profitability is largely a function of minimizing cost.

Author : Robert Cull,Asli Demirg????-Kunt,Jonathan Morduch
Publisher : Unknown
Page : 128 pages
File Size : 52,8 Mb
Release : 2012
Category : Electronic
ISBN : OCLC:931673253

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Financial Performance and Outreach by Robert Cull,Asli Demirg????-Kunt,Jonathan Morduch Pdf

Microfinance contracts have proven able to secure high rates of loan repayment in the face of limited liability and information asymmetries, but high repayment rates have not translated easily into profits for most microbanks. Profitability, though, is at the heart of the promise that microfinance can deliver poverty reduction while not relying on ongoing subsidy. The authors examine why this promise remains unmet for most institutions. Using a data set with unusually high quality financial information on 124 institutions in 49 countries, they explore the patterns of profitability, loan repayment, and cost reduction. The authors find that institutional design and orientation matter substantially. Lenders that do not use group-based methods to overcome incentive problems experience weaker portfolio quality and lower profit rates when interest rates are raised substantially. For these individual-based lenders, one key to achieving profitability is investing more heavily in staff costs-a finding consistent with the economics of information but contrary to the conventional wisdom that profitability is largely a function of minimizing cost.

Author : Robert Cull
Publisher : Unknown
Page : 51 pages
File Size : 48,8 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290703682

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Financial Performance and Outreach by Robert Cull Pdf

Microfinance contracts have proven able to secure high rates of loan repayment in the face of limited liability and information asymmetries, but high repayment rates have not translated easily into profits for most microbanks. Profitability, though, is at the heart of the promise that microfinance can deliver poverty reduction while not relying on ongoing subsidy. The authors examine why this promise remains unmet for most institutions. Using a data set with unusually high quality financial information on 124 institutions in 49 countries, they explorethe patterns of profitability, loan repayment, and cost reduction. The authors find that institutional design and orientation matter substantially. Lenders that do not use group-based methods to overcome incentive problems experience weaker portfolio quality and lower profit rates when interest rates are raised substantially. For these individual-based lenders, one key to achieving profitability is investing more heavily in staff costs - a finding consistent with the economics of information but contrary to the conventional wisdom that profitability is largely a function of minimizing cost.

Author : Bernd Balkenhol
Publisher : Palgrave Macmillan
Page : 194 pages
File Size : 42,5 Mb
Release : 2007-12-15
Category : Business & Economics
ISBN : 0230547028

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Microfinance and Public Policy by Bernd Balkenhol Pdf

Microfinance institutions (MFIs) provide a public good: they provide income-creating financial services to un-bankable people. If MFIs create and deepen markets where none existed before, there may be a case for public support. While subsidies are generally not favorably seen in financial sector development, being difficult to target and possibly distorting the local financial market, there may be situations where the net social benefits of micro-finance may exceed those of not doing anything and of alternative anti-poverty programs. Under such circumstances longer-term public support may be justifiable. This book is based on a study of forty-five MFIs carried out by ILO, in partnership with the Universities of Geneva and Cambridge. The application of factor analysis and cluster analysis shows that MFIs form clusters in terms of social and performance. Within each cluster there is one institution that is most efficient on both scores. Public support should ensure that the relative efficiency of MFIs is enhanced, it should not prod MFIs to modify their mission and position between poverty outreach and profitability.

Author : Julian Schmied
Publisher : Universitätsverlag Potsdam
Page : 70 pages
File Size : 43,9 Mb
Release : 2014-12-01
Category : Electronic
ISBN : 9783869562759

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Financial Performance and Social Goals of Microfinance Institutions by Julian Schmied Pdf

Critics argue that there has been a trend among Microfinance Institutions (MFI) to focus on profitability in order to stay financially sustainable. This made some institutions neglect the social mission of microfinancing. In this paper I intend to examine if empirical evidence supports this so called mission drift hypothesis as well as other claims in this context. Using the global panel data set of the MIX (Microfinance Information Exchange), which gathers from 1995 to 2010 and contains up to 1400 institutions with a high variety of organizational forms, I was able to identify a world-wide mission drift effect in their social goal of reaching out the poorest part of the population. Furthermore, I find that, on average, the outreach of an MFI has a significant negative influence on its short and long term financial performance. Despite that, I eventually proved that the probability that an MFI worsens its social performance substantially increases if its profitability has decreased in the previous years.

Author : Manfred Zeller,Richard L. Meyer
Publisher : Intl Food Policy Res Inst
Page : 426 pages
File Size : 42,6 Mb
Release : 2002-01-01
Category : Business & Economics
ISBN : 9780801872266

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The Triangle of Microfinance by Manfred Zeller,Richard L. Meyer Pdf

Since the 1980s when the microfinance revolution began, much has been accomplished, but the field became more refined in the 1990s as a result of shifts in paradigms, strategies, and development practices. This volume addresses the three policy objectives that now occupy those who wish to use credit as a development tool: financial sustainability of microfinance institutions, outreach to the poor, and welfare impact. Inevitable tradeoffs exist among these objectives, and the book advances an analytical framework that assists students of and experts in microfinance to identify the tradeoffs and synergies at the institutional level and in the policy environment. The book features a wealth of empirical data and innovative analytical studies, and critically discusses the role of public support for microfinance institutions (MFIs) in light of the social costs and benefits generated by such financial systems. The book is organized into five parts. The first discusses the demand for and access to financial services by the poor, emphasizing that demand-oriented, pro-poor financial services are crucial in reaching the poor. The second is concerned with two of the criteria used to evaluate MFIs—outreach and financial sustainability. The third features innovative econometric studies seeking to evaluate the impact of MFIs at the household level. The fourth looks at the role of both public- and private-sector institutions in developing sustainable financial systems. And the fifth summarizes implications for policy and research. Given the lack of sound, empirical literature on microfinance, this volume is sure to advance knowledge and research methodology in the field.

Author : R. Mersland,Ø. Strøm
Publisher : Palgrave Macmillan
Page : 0 pages
File Size : 53,6 Mb
Release : 2014-12-15
Category : Business & Economics
ISBN : 1137399651

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Microfinance Institutions by R. Mersland,Ø. Strøm Pdf

Research on MFI performance is still in its infancy. MFIs are hybrid organizations with dual objectives. Performance studies in microfinance are therefore less straightforward compared to performance studies in traditional banking research. This book contains new MFI performance research by top scholars from across the globe.

Author : Gianfranco A. Vento,Mario La Torre
Publisher : Springer
Page : 175 pages
File Size : 52,6 Mb
Release : 2006-07-25
Category : Business & Economics
ISBN : 9780230627581

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Microfinance by Gianfranco A. Vento,Mario La Torre Pdf

Microfinance is a comprehensive analysis of the operational, managerial and financial aspects of microfinance. The text provides a contemporary analysis of microfinance business covering the risks, returns and management issues associated with such activity. It analyzes the main products and services available in modern microfinance and explains how to manage the financial and non financial risks involved. The book also provides a performance and monitoring model for microfinance programmes and describes how microfinance can be regulated.

Author : Jonathan Morduch
Publisher : Unknown
Page : 28 pages
File Size : 42,5 Mb
Release : 1998
Category : Electronic
ISBN : STANFORD:36105021285437

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The Microfinance Schism by Jonathan Morduch Pdf

Author : Joanna Ledgerwood
Publisher : World Bank Publications
Page : 302 pages
File Size : 41,6 Mb
Release : 1998-12-01
Category : Business & Economics
ISBN : 9780821384312

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Microfinance Handbook by Joanna Ledgerwood Pdf

The purpose of the 'Microfinance Handbook' is to bring together in a single source guiding principles and tools that will promote sustainable microfinance and create viable institutions.

Author : Bernd Balkenhol
Publisher : Unknown
Page : 4 pages
File Size : 50,5 Mb
Release : 2007
Category : Finance
ISBN : 134936133X

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Microfinance and Public Policy by Bernd Balkenhol Pdf

Microfinance institutions (MFIs) provide a public good; if MFIs create and deepen markets where none existed before, there may be a case for public support. This book is based on a study of 45 MFIs, and applies factor analysis and cluster analysis to show that MFIs form clusters in terms of social and financial performance.

Author : World Bank,International Monetary Fund
Publisher : World Bank Publications
Page : 494 pages
File Size : 51,6 Mb
Release : 2005-09-29
Category : Business & Economics
ISBN : 0821364324

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Financial Sector Assessment by World Bank,International Monetary Fund Pdf

The experience of many countries around the world clearly shows that while financial sector development can spur economic growth, financial fragility and instability can seriously harm growth. Following the financial crises of the late 1990s, there has been increasing interest in the systematic assessment of the strengths and weaknesses of financial systems, with the ultimate goal of formulating appropriate policies to foster financial stability, and stimulate financial sector development. Consequently, there has been an increased demand from financial sector authorities in many countries, as well as from the Bank and International Monetary Fund (IMF) staff for information on key issues, and sound practices in the assessment of financial systems, and in the design of policy responses. This Handbook of Financial Sector Assessment is a response to this demand. The Handbook presents an overall analytical framework for assessing financial system stability and developmental needs, providing broad guidance on approaches, methodologies, and techniques of assessing financial systems. Although the Handbook draws substantially on Bank and IMF experience with the financial sector assessment programs (FSAPs), and from the broader policy and operational work in both institutions, it is designed for generic use in financial sector assessments, whether conducted by country authorities themselves, or by Bank and IMF teams. It is, therefore, hoped the Handbook will serve as an authoritative source on the objectives, analytical framework, and methodologies of financial sector assessments, as well as a comprehensive reference book for training on the techniques of such assessments.

Author : Hernández-Sánchez, Brizeida R.,Sánchez-García, José C.,Moreira, Antonio Carrizo
Publisher : IGI Global
Page : 369 pages
File Size : 51,9 Mb
Release : 2020-03-27
Category : Business & Economics
ISBN : 9781799827061

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Building an Entrepreneurial and Sustainable Society by Hernández-Sánchez, Brizeida R.,Sánchez-García, José C.,Moreira, Antonio Carrizo Pdf

As the global economy continues to evolve, the idea of sustainability has become a prevalent area of concentration. Businesses are searching for more environmentally and socially conscious practices as the market distances itself from the industrial age. Implementing sustainable initiatives starts with entrepreneurs, as these individuals are the foundation for creating and building profitable societies. Understanding the practice of sustainable entrepreneurship is pivotal in predicting future trends in business and the economy. Building an Entrepreneurial and Sustainable Society provides emerging research exploring the theoretical and practical aspects of sustainability within entrepreneurship and its applications in modern socioeconomics. Featuring coverage on a broad range of topics such as public policies, internationalization, and social innovation, this book is ideally designed for entrepreneurs, business specialists, professionals, researchers, managers, economists, educators, scholars, and students seeking current research on the evolution of sustainable entrepreneurship and its contextual factors.

Author : Joanna Ledgerwood,Victoria White
Publisher : World Bank Publications
Page : 566 pages
File Size : 41,5 Mb
Release : 2006-08-30
Category : Business & Economics
ISBN : 0821366165

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Transforming Microfinance Institutions by Joanna Ledgerwood,Victoria White Pdf

In response to a clear need by low-income people to gain access to the full range of financial services including savings, a growing number of microfinance NGOs are seeking guidelines to transform from credit-focused microfinance organizations to regulated deposit-taking financial intermediaries. In response to this trend, this book presents a practical 'how-to' manual for MFIs to develop the capacity to become licensed and regulated to mobilize deposits from the public. 'Transforming Microfinance Institutions' provides guidelines for regulators to license and regulate microfinance providers, and for transforming MFIs to meet the demands of two major new stakeholders regulators and shareholders. As such, it focuses on developing the capacity of NGO MFIs to mobilize and intermediate voluntary savings. Drawing from worldwide experience, it outlines how to manage the transformation process and address major strategic and operational issues inherent in transformation including competitive positioning, business planning, accessing capital and shareholders, and how to 'transform' the MFI's human resources, financial management, MIS, internal controls, and branch operations. Case studies then provide examples of developing a new regulatory tier for microfinance, and how a Ugandan NGO transformed to become a licensed financial intermediary. This book will be invaluable to regulators and microfinance NGOs contemplating institutional transformation and will be of tremendous use to donors and technical support agencies supporting MFIs in their transformation.

Author : Hege Gulli
Publisher : IDB
Page : 134 pages
File Size : 47,9 Mb
Release : 1998
Category : Business & Economics
ISBN : 1886938458

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Microfinance and Poverty by Hege Gulli Pdf