Abstract

When microfinance institutions strive to grant sizable loans in order to improve customers’ living standards, some financial indicators have to suffer. Specifically, Institutions have to spend more in the screening process in order to feel secure when they grant bigger loans. However, higher cost per borrower will reduce financial revenue. A comparative analysis of institutions across regions and with regards to their legal statuses reveals that: 1) African institutions have a higher predisposition to impact their customers than their peer from other regions; 2) commercial banks are likely to improve living standards more than other types of microfinance institutions.

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