Can Combined Microfinance Boost Economic Results? An Empirical Cross-sectional Analysis
Worldwide, microcredit organizations are gradually transforming to multi-servicing organizations offering additional financial services. This paper examines whether combining microcredit with insurance and/or savings enhances their economic performance measured by their efficiency, productivity, sustainability or portfolio quality indicators. Using cross-sectional data from 250 microfinance institutions (MFIs) from Latin America and the Caribbean, it compares MFIs offering credit only with those combining credit with respectively savings and/or insurance. A cross-sectional multiple regression analysis shows positive effects of both savings and insurance on the efficiency and productivity of MFIs. Taking into account various risks, this can be attributed to economies of scope, especially in a context of large and mature MFIs which exhibit organisational readiness. Surprisingly, the research didn't observe significant results relating to possible effects on the sustainability and portfolio quality of MFIs.
Volume (Year): 2 (2012)
Issue (Month): (August)
|Contact details of provider:|| Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada|
Web page: http://www.bapress.ca
|Order Information:|| Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Cull & Asli Demirguç-Kunt & Jonathan Morduch, 2007.
"Financial performance and outreach: a global analysis of leading microbanks,"
Royal Economic Society, vol. 117(517), pages F107-F133, 02.
- Cull, Robert & Demirguc-Kunt, Asli & Morduch, Jonathan, 2006. "Financial performance and outreach : a global analysis of leading microbanks," Policy Research Working Paper Series 3827, The World Bank.
- Jeffrey A. Clark, 1988. "Economies of scale and scope at depository financial institutions: a review of the literature," Economic Review, Federal Reserve Bank of Kansas City, issue Sep, pages 16-33.
- Mark Schreiner, 2001. "Measuring Savings," Microeconomics 0108004, EconWPA, revised 27 Dec 2001.
- Marc Labie & Marthe Nyssens & Pascal Wele, 2007.
"Microfinance et micro-assurance santé: réflexions sur des articulations possibles à partir de quelques expériences au Bénin et au Burkina Faso,"
ULB Institutional Repository
2013/14275, ULB -- Universite Libre de Bruxelles.
- Marc Labie & Marthe Nyssens & Pascal Wélé, 2007. "Microfinance et micro-assurance santé : réflexions sur des articulations possibles à partir de quelques expériences au Bénin et au Burkina Faso," Mondes en développement, De Boeck Université, vol. 0(3), pages 57-71.
- Koen Rossel-Cambier, 2009. "La microfinance combinée : aperçu en Amérique latine et dans les Caraïbes," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(3), pages 85-97.
- Ahlin, Christian & Lin, Jocelyn & Maio, Michael, 2011. "Where does microfinance flourish? Microfinance institution performance in macroeconomic context," Journal of Development Economics, Elsevier, vol. 95(2), pages 105-120, July.
- Marek Hudon, 2007. "Ethics and public policy in microfinance," ULB Institutional Repository 2013/210639, ULB -- Universite Libre de Bruxelles.
- Ahlin, Christian & Jiang, Neville, 2008. "Can micro-credit bring development?," Journal of Development Economics, Elsevier, vol. 86(1), pages 1-21, April.
- Ioannidou, Vasso P. & Penas, María Fabiana, 2010. "Deposit insurance and bank risk-taking: Evidence from internal loan ratings," Journal of Financial Intermediation, Elsevier, vol. 19(1), pages 95-115, January.
- Steven B. Caudill & Daniel M. Gropper & Valentina Hartarska, 2009. "Which Microfinance Institutions Are Becoming More Cost Effective with Time? Evidence from a Mixture Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(4), pages 651-672, 06.
- Marc Labie, 2009.
"Microfinance : évolutions du secteur, diversification de produits et gouvernance,"
Reflets et perspectives de la vie économique,
De Boeck Université, vol. 0(3), pages 5-6.
- Marc Labie, 2009. "Microfinance:évolutions du secteur, diversification de produits et gouvernance," ULB Institutional Repository 2013/190766, ULB -- Universite Libre de Bruxelles.
- Mersland, Roy & Strøm, Reidar Øystein, 2007.
"Performance and corporate governance in microfinance institutions,"
3888, University Library of Munich, Germany.
- Mersland, Roy & Strøm, Reidar Øystein, 2007. "Performance and corporate governance in microfinance institutions," MPRA Paper 3887, University Library of Munich, Germany.
- Copestake, James, 2007. "Mainstreaming Microfinance: Social Performance Management or Mission Drift?," World Development, Elsevier, vol. 35(10), pages 1721-1738, October.
- Pulley, Lawrence B & Humphrey, David B, 1993. "The Role of Fixed Costs and Cost Complementarities in Determining Scope Economies and the Cost of Narrow Banking Proposals," The Journal of Business, University of Chicago Press, vol. 66(3), pages 437-62, July.
When requesting a correction, please mention this item's handle: RePEc:bap:journl:120307. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlson)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.