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Dynamic analysis of the interest rate determinant in microfinance institutions

Author

Listed:
  • Djibril Faye

    (CRESE EA3190, Univ. Bourgogne Franche-Comté, F-25000 Besançon, France)

  • Zaka Ratsimalahelo

    (CRESE EA3190, Univ. Bourgogne Franche-Comté, F-25000 Besançon, France)

Abstract

In this paper, we examine the interest rate of microfinance institutions in a dynamic framework in order to consider the anticipation phenomenon. The fluctuations that affect the development of MFIs are often unpredictable and may be fast. The results show an interest rate increase over time, which is more significant within cooperatives and Non-Governmental Organizations (NGOs) compared to other MFIs categories. Our results clearly show that these MFI types suffer from more exogenous shocks.

Suggested Citation

  • Djibril Faye & Zaka Ratsimalahelo, 2022. "Dynamic analysis of the interest rate determinant in microfinance institutions," Working Papers 2022-09, CRESE.
    • Handle: RePEc:crb:wpaper:2022-09
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    References listed on IDEAS

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    More about this item

    Keywords

    Interest rate; Microfinance; GMM-System; Dynamic panel; Fisher test statistic;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative

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