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Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market

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  • Marie Briere
  • Ariane Szafarz

Abstract

This paper is the first to draw a global picture of worldwide microfinance equity by taking full advantage of daily quoted prices. We revisit previous findings showing that investors should consider microfinance as a self-standing sector. Our results are threefold. First, microfinance has become less risky and more closely correlated with the financial sector. This convergence might be followed by a decline in the proportion of women borrowers. Second, microfinance and finance shares have equivalent currency exposure. Last, introducing a selfstanding microfinance sector presents few diversification benefits. This paper confirms that microfinance has changed dramatically during the last decade.

Suggested Citation

  • Marie Briere & Ariane Szafarz, 2014. "Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market," Working Papers CEB 14-024, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/176073
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    Cited by:

    1. Patrick Reichert, 2016. "A meta-analysis examining the nature of trade-offs in microfinance," Working Papers CEB 16-005, ULB -- Universite Libre de Bruxelles.
    2. repec:ebl:ecbull:eb-16-00828 is not listed on IDEAS
    3. repec:eee:wdevel:v:107:y:2018:i:c:p:176-188 is not listed on IDEAS
    4. Périlleux, Anaïs & Szafarz, Ariane, 2015. "Women Leaders and Social Performance: Evidence from Financial Cooperatives in Senegal," World Development, Elsevier, vol. 74(C), pages 437-452.
    5. repec:rfa:aefjnl:v:4:y:2017:i:6:p:42-52 is not listed on IDEAS
    6. Tchakoute Tchuigoua, Hubert, 2016. "Buffer capital in microfinance institutions," Journal of Business Research, Elsevier, vol. 69(9), pages 3523-3537.
    7. François-Seck Fall, 2017. "Determinants of Microfinance institutions' access to bank credit in Senegal," Post-Print hal-01538412, HAL.

    More about this item

    Keywords

    Microfinance; South Africa; Kenya; Indonesia; Bangladesh; Mexico;

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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