Abstract

AbstractThe paper examines the determinants of social and financial performance of microfinance institutions using a database obtained from the MIX, consisting of 79 MFIs from the MENA region. The results reveal the existence of a possible trade‐off between profitability and outreach since MFI, oriented toward female borrowers, are likely to be less profitable than others. Another interesting finding is that non‐profit non‐governmental organizations (NGO) perform better in operational self‐sufficiency than MFIs with a different legal status. Overall, the specific institutional variables and macroeconomic factors appear to be critical determinants of the social and financial performance of MFIs.

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