Do microfinance institutions benefit from integrating financial and non-financial services

Robert Lensink, R. Mersland, Nhung Vu, S. Zamore

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Abstract

This article examines the impact of microfinance plus' (i.e. coordinated combination of financial and nonfinancial services) on the performance of microfinance institutions (MFIs). Using a global data set of MFIs in 77 countries, we find that the provision of nonfinancial services does not harm nor improve MFIs' financial sustainability and efficiency. The results however suggest that the provision of social services is associated with improved loan quality and greater depth of outreach.
Original languageEnglish
Pages (from-to)2386-2401
Number of pages16
JournalApplied Economics
Volume50
Issue number21
DOIs
Publication statusPublished - 2018

Keywords

  • Microfinance "plus'
  • business development services
  • financial sustainability
  • PANEL-DATA
  • POVERTY
  • PERFORMANCE
  • IMPACT
  • MICROCREDIT
  • OUTREACH
  • MICROBANKS
  • BUSINESS
  • BANKING
  • MODELS

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