nep-mfd New Economics Papers
on Microfinance
Issue of 2018‒09‒24
three papers chosen by
Olivier Dagnelie
Université de Caen

  1. Determinants of the Performance of Microfinance Institutions: A Systematic Review By Niels Hermes; Marek Hudon
  2. Factors Affecting Access to Formal Credit by Micro and Small Enterprises in Uganda By Faisal Buyinza; Anthony Tibaingana; John Mutenyo
  3. Measuring the Farm Level Impact of Rural Credit: A Two-stage Approach By Eusébio, Gabriela Dos Santos; Gori-Maia, Alexandre; Silveira, Rodrigo Lanna F.

  1. By: Niels Hermes; Marek Hudon
    Abstract: Microfinance institutions (MFIs) generally aim at improving the access of the poor to financial services while at the same time being financially sustainable. But what do we know about how MFIs reach and combine these two goals? We carry out a systematic review of close to 170 articles discussing the determinants of the financial and social performance of MFIs. The review shows that the most important determinants addressed in the literature are MFI characteristics (size, age, type of organization), their funding sources, the quality of organizational governance and the MFIs’ external context such as macroeconomic, institutional and political conditions. The evidence on these issues is rather mixed. Moreover, the direction of the relationship between these drivers and MFI performance depends on the context, particularly the country-specific context. Finally, there is a lack of consensus in the literature on the measurement of financial and social performance. Due to the complexity of the concept, we argue that social performance should only be assessed by using a multidimensional perspective. This can be done either by applying recent and holistic social performance measures such as the SPI4, or at least by using a combination of proxies, such as outreach, gender and rural measures.
    Keywords: microfinance; performance; social performance; governance; microcredit
    JEL: B00 O16 Q14
    Date: 2018–06–25
    URL: http://d.repec.org/n?u=RePEc:sol:wpaper:2013/272925&r=mfd
  2. By: Faisal Buyinza; Anthony Tibaingana; John Mutenyo
    Abstract: This article investigates the factors affecting access to formal credit by micro and small enterprises in Uganda using the Gender Enterprise Survey that was funded by the IDRC. The study employed a probit model. The findings show that firm sales, owner's education level, belonging to a business association, belonging to business group, use of internet, owning a personal and business bank account, and gender of the owner are positively associated with access to formal credit. We also find that experienced firms are less likely to apply for credit hence reduce the probability to receive formal bank credit. Our results provide insights on the existing gaps in designing supportive policies for micro and small enterprise to enable them increase their access to credit especially from the formal financial institutions.
    Keywords: Credit constraint, micro and small enterprises, sample selection, Uganda
    Date: 2018–08
    URL: http://d.repec.org/n?u=RePEc:ico:wpaper:83&r=mfd
  3. By: Eusébio, Gabriela Dos Santos; Gori-Maia, Alexandre; Silveira, Rodrigo Lanna F.
    Keywords: Agricultural and Food Policy, Agricultural Finance, Research Methods/Statistical Methods
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258551&r=mfd

This nep-mfd issue is ©2018 by Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.