Microfinance and Public Policy: Outreach, Performance and EfficiencyBernd Balkenhol Palgrave Macmillan, 2007 - 263 pages 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. |
Contents
Efficiency and Sustainability in Microfinance | 3 |
Poverty versus Inequality | 27 |
29 | 46 |
Copyright | |
12 other sections not shown
Other editions - View all
Microfinance and Public Policy: Outreach, Performance and Efficiency B. Balkenhol Limited preview - 2007 |
Microfinance and Public Policy: Outreach, Performance and Efficiency Bernd Balkenhol No preview available - 2007 |
Common terms and phrases
assess average loan borrowers capability approach capita cent CGAP clusters collateral countries CVECA Data Envelopment Analysis deposits depth of outreach Development dimensions donor economic efficiency indicators factor analysis financial institutions financial performance financial self-sufficiency financial sustainability fixed assets focus frontier funds GIAN gross loan portfolio impact of microfinance income increase inefficient input interest margins interest rate labour lending loan loss provision loan officers Mali measures methodology MFIs MicroBanking Bulletin microcredit microenterprise microfinance institutions microfinance schemes minimum wage modalities Mosley Net interest margins operating expense operational self-sufficiency output poor clients poorest poverty focused poverty line poverty outreach poverty reduction PRIZMA production programme reduce returns to scale risk rural sample scores sector social and financial social performance staff costs subsidies Table target trade-offs transaction costs type of MFI University of Geneva variables World Bank Write-off ratio