Competition, performance and portfolio quality in microfinance markets

Ashim Kumar Kar, Ranjula Bali Swain

    Tutkimustuotos: Artikkeli kirjassa/raportissa/konferenssijulkaisussaKirjan luku tai artikkeliTieteellinen

    Abstrakti

    In recent years growing competition in the microfinance industry has been censured for multiple borrowing, default crises, high interest rates and coercive recovery of loans. Using the Boone indicator as a measure for competition, our paper investigates the impact of competition on microfinance institutions’ (MFIs) outreach, financial performance and quality of loan portfolio. We deal with the potential endogeneity issues by employing the instrumental variable approach using the generalized methods of moments (GMM) estimation technique. Analysing the Microfinance Information Exchange data our empirical results show that increased competition in microfinance sector leads to a larger average loans and a decrease in the financial self-sustainability. The data also supports the view that increased competition in the microfinance industry leads to a decline in the loan portfolio quality.
    Alkuperäiskielienglanti
    OtsikkoCompetition, performance and portfolio quality in microfinance markets
    Sivumäärä33
    JulkaisupaikkaUppsala
    KustantajaUppsala University
    Julkaisupäivä2014
    TilaJulkaistu - 2014
    OKM-julkaisutyyppiB2 Kirjan tai muun kokoomateoksen osa

    Julkaisusarja

    NimiWorking Paper Series
    KustantajaUppsala University
    Numero8
    Vuosikerta2014
    ISSN (painettu)1653-6975

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