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Depth of outreach and financial sustainability of microfinance institutions

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  • Shakil Quayes

Abstract

The primary justification for subsidizing Microfinance Institutions (MFIs) is their enhancement of social welfare by extending credit to the poor households. Therefore, recent emphasis on their financial self-sufficiency has created concern, that this may adversely affect the mission of social outreach. Utilizing data from 702 MFIs operating in 83 countries, this study shows empirical evidence of a positive complementary relationship between financial sustainability and depth of outreach.

Suggested Citation

  • Shakil Quayes, 2012. "Depth of outreach and financial sustainability of microfinance institutions," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3421-3433, September.
    • Handle: RePEc:taf:applec:44:y:2012:i:26:p:3421-3433
    DOI: 10.1080/00036846.2011.577016
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