Depth of outreach and financial sustainability of microfinance institutions
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.
Document Type: Research Article
Affiliations: Department of Economics,University of Massachusetts Lowell, One University AvenueLowellMA 01854, USA
Publication date: 2012-09-01