The impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence

The present paper examines the impact of financial and social performance of microfinance institutions (MFIs) on lending interest rate. The paper has covered five-star-rated MFIs in all the six regions of the world individually and collectively for the period of 2006–2012. Data for 382 MFIs belongin...

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Autor principal:	Afsheen Abrar
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2019
Materias:	lending interest rate microfinance institutions financial performance outreach Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/d6237cc39348439ba9e9c51ef2073d8a
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spelling	oai:doaj.org-article:d6237cc39348439ba9e9c51ef2073d8a2021-12-02T18:31:20ZThe impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence2331-197510.1080/23311975.2018.1540072https://doaj.org/article/d6237cc39348439ba9e9c51ef2073d8a2019-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2018.1540072https://doaj.org/toc/2331-1975The present paper examines the impact of financial and social performance of microfinance institutions (MFIs) on lending interest rate. The paper has covered five-star-rated MFIs in all the six regions of the world individually and collectively for the period of 2006–2012. Data for 382 MFIs belonging to 70 countries around the world have been taken from the Microfinance Information Exchange (Mix Market). Financial performance is captured through return on assets, return on equity, and operational self-sufficiency, whereas social performance is measured through average loan size and number of credit clients. The lending interest rate is a weighted average of the interest rates actually received by the MFIs from their clients. The paper incorporated some control variables to capture variations in size, age, location, and infrastructure of MFIs. Panel data estimation techniques have been applied to find out the empirical association between the selected variables. Most of the results have shown that cost of funding, return on assets (ROA), and the number of credit clients have a significant positive impact on lending interest rate around the world. However, depth outreach as depicted by average loan size has significant inverse relation with lending interest rates. Moreover, results also highlight different factors that affect the productivity of MFIs around the world.Afsheen AbrarTaylor & Francis Grouparticlelending interest ratemicrofinance institutionsfinancial performanceoutreachBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 6, Iss 1 (2019)
institution	DOAJ
collection	DOAJ
language	EN
topic	lending interest rate microfinance institutions financial performance outreach Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	lending interest rate microfinance institutions financial performance outreach Business HF5001-6182 Management. Industrial management HD28-70 Afsheen Abrar The impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence
description	The present paper examines the impact of financial and social performance of microfinance institutions (MFIs) on lending interest rate. The paper has covered five-star-rated MFIs in all the six regions of the world individually and collectively for the period of 2006–2012. Data for 382 MFIs belonging to 70 countries around the world have been taken from the Microfinance Information Exchange (Mix Market). Financial performance is captured through return on assets, return on equity, and operational self-sufficiency, whereas social performance is measured through average loan size and number of credit clients. The lending interest rate is a weighted average of the interest rates actually received by the MFIs from their clients. The paper incorporated some control variables to capture variations in size, age, location, and infrastructure of MFIs. Panel data estimation techniques have been applied to find out the empirical association between the selected variables. Most of the results have shown that cost of funding, return on assets (ROA), and the number of credit clients have a significant positive impact on lending interest rate around the world. However, depth outreach as depicted by average loan size has significant inverse relation with lending interest rates. Moreover, results also highlight different factors that affect the productivity of MFIs around the world.
format	article
author	Afsheen Abrar
author_facet	Afsheen Abrar
author_sort	Afsheen Abrar
title	The impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence
title_short	The impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence
title_full	The impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence
title_fullStr	The impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence
title_full_unstemmed	The impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence
title_sort	impact of financial and social performance of microfinance institutions on lending interest rate: a cross-country evidence
publisher	Taylor & Francis Group
publishDate	2019
url	https://doaj.org/article/d6237cc39348439ba9e9c51ef2073d8a
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The impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence

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