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Focus on Women in Microfinance Institutions

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  • D'Espallier, Bert
  • Guerin, Isabelle
  • Mersland, Roy

Abstract

We provide empirical evidence on focusing on women in microfinance and its consequences for microfinance institutions (MFIs). Based on a global dataset, the results indicate that a focus on women is associated with group-lending methods, international orientation, smaller loans, and non-commercial legal status. We find that a focus on women significantly improves repayment but does not enhance overall financial performance because of higher relative costs. Moreover, the higher relative costs do not stem from servicing women per se but from the smaller loans offered to women and the group-lending methodology practiced by MFIs focusing on women

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  • D'Espallier, Bert & Guerin, Isabelle & Mersland, Roy, 2013. "Focus on Women in Microfinance Institutions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 49(5), pages 589-608.
    • Handle: RePEc:zbw:espost:323988
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