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Can Combined Microfinance Boost Economic Results? An Empirical Cross-sectional Analysis


  • Koen Rossel-Cambier

    () (Centre for European Research on Microfinance (CERMI) and Waroqu¨¦ Business School,Faculty of Economics and Business Management, University of Mons)


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.

Suggested Citation

  • Koen Rossel-Cambier, 2012. "Can Combined Microfinance Boost Economic Results? An Empirical Cross-sectional Analysis," Review of Economics & Finance, Better Advances Press, Canada, vol. 2, pages 79-94, August.
  • Handle: RePEc:bap:journl:120307

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    References listed on IDEAS

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    Cited by:

    1. Akotey, Joseph Oscar & Adjasi, Charles K.D., 2016. "Does Microcredit Increase Household Welfare in the Absence of Microinsurance?," World Development, Elsevier, vol. 77(C), pages 380-394.

    More about this item


    Performance; Combined microfinance; Micro-insurance; Micro-savings;

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies


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