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Rentabilidad versus profundidad del alcance: un análisis de las entidades microfinancieras peruanas, 2006-2011
[Profitability and depth of outreach: analysis of the Peruvian microfinance organizations, 2006-2011]

Author

Listed:
  • Aguilar, Ady
  • Galarza, Francisco

Abstract

The rise of commercialization in microfinance we have witnessed in the last two decades has revived the debate about the trade-off between the sustainability and depth of outreach of the Microfinance Organizations (MFOs). We find evidence of such trade-off for the Peruvian MFOs (meaning that greater sustainability is attained at the expense of reducing the depth of outreach), a result that is entirely explained by the formal, regulated, MFOs. The inexistence of such trade-off for the unregulated MFOs (NGOs) is consistent with a profitable portfolio management, attained while still attending low-income individuals (no mission drift).

Suggested Citation

  • Aguilar, Ady & Galarza, Francisco, 2013. "Rentabilidad versus profundidad del alcance: un análisis de las entidades microfinancieras peruanas, 2006-2011 [Profitability and depth of outreach: analysis of the Peruvian microfinance organizati," MPRA Paper 51860, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51860
    as

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    References listed on IDEAS

    as
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    7. Copestake, James, 2007. "Mainstreaming Microfinance: Social Performance Management or Mission Drift?," World Development, Elsevier, vol. 35(10), pages 1721-1738, October.
    8. Mosley, Paul & Hulme, David, 1998. "Microenterprise finance: Is there a conflict between growth and poverty alleviation?," World Development, Elsevier, vol. 26(5), pages 783-790, May.
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    More about this item

    Keywords

    Microfinance; sustainability; depth of outreach; Peru;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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