What determines the financial performance of microfinance institutions in Bangladesh? a panel data analysis

Nasrin, Shamima and Rasiah, Rajah and Baskaran, Angathevar and Masud, Muhammad Mehedi (2018) What determines the financial performance of microfinance institutions in Bangladesh? a panel data analysis. Quality & Quantity, 52 (3). pp. 1409-1422. ISSN 0033-5177, DOI https://doi.org/10.1007/s11135-017-0528-1.

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Official URL: https://doi.org/10.1007/s11135-017-0528-1

Abstract

While there is considerable expansion of microfinance institutions (MFIs) in the developing countries, there is a paucity of literature that examines the determinants of their Financial Performance (FP) among the Least Developed Countries (LDCs). This article seeks to investigate the determinants of FP of MFIs in Bangladesh over the period 2007–2013. Using two different measures of financial performance (portfolio yield and profit margin), the results indicate that the depth and breadth of social outreach can improve FP of MFIs. In particular, targeting women borrowers, increasing the average loan per borrower and increasing the number of active borrowers can contribute significantly to enhance the FP of MFIs. The results also show that, increasing savings and reducing operating expense can also contribute to increase MFIs’s financial performance.

Item Type: Article
Funders: UNSPECIFIED
Uncontrolled Keywords: Bangladesh; Financial performance; Microfinance institutions; Social outreach; Women borrowers
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
Divisions: Faculty of Economics & Administration
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 08 May 2019 06:31
Last Modified: 08 May 2019 06:31
URI: http://eprints.um.edu.my/id/eprint/21164

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