Depth of outreach in the context of microfinance commercialization in PerúThis paper seeks to answer the question of what factors are conducive to depth of outreach, that is, attending to customers on lower incomes, on the part of commercial microfinance institutions (MFIs) in Peru, in order to propose measures aimed at increasing the financial inclusion of the microenterprise sector.Using a panel database containing information on the MFIs regulated by Peru’s banking, insurance, and pension fund management comptroller (Superintendencia de Banca, Seguros y AFP) and regressions with panel-corrected standard errors, the study finds that depth of outreach would benefit from lower administrative costs per borrower, the specialization of MFI loans to micro-entrepreneurs, and higher interest rates, the first two variables being those proposed by the present investigation. Meanwhile, the trade-off between MFI depth and profitability , discussed widely in the literature on the subject, would also be present in commercial MFIs. Additionally, those bodies who promote micro-enterprise development would present the greatest potential for further deepening. / El presente documento busca responder a la pregunta de cuáles son los factores que favorecen la profundización de alcance, es decir, la atención de clientes de menores ingresos, por parte de lasinstituciones microfinancieras (IMF) comerciales en el Perú; para así proponer medidas dirigidasa una mayor inclusión financiera del sector microempresarial.Utilizando una base de datos panel con información de las IMF reguladas por la Superintendenciade Banca, Seguros y AFP, y una regresión por errores estándar corregidos por panel, el estudioencuentra que la profundización se vería favorecida por un menor gasto administrativo por deudor,la especialización de las IMF en préstamos a microempresarios y las mayores tasas de interés, siendo las dos primeras variables las propuestas por la presente investigación. En tanto que el trade-off entre la profundidad y la rentabilidad de las IMF, discutido ampliamente en la literatura sobre el tema, también estaría presente en las IMF comerciales. Adicionalmente, las instituciones Edpymes serían las de mayor potencial para una mayor profundización.

The dissertation chooses Vietnam as a typical case to address the gap in microfinance studies. Instead of focusing on the beneficiaries of the microfinance system, as many studies have been done, the subjects of this study are microfinance institutions (MFIs). The objective is to suggest a balanced sustainability approach for MFIs in Vietnam that refers to governance practices, legal environmental, and social and financial objectives as equally important. Particularly, it identifies the constraints and the potential, and suggests workable approaches to support Vietnam microfinance providers in extending and developing services throughout the country in a financially sustainable manner. / 博士(現代アジア研究) / Doctor of Philosophy in Contemporary Asian Studies / 同志社大学 / Doshisha University

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Microcredit in developed countries behaves in a di erent way than in developing countries. Not only are there bigger obstacles to surpass, like regulation and heavy competition, but also the main driver for microcredit, peer pressure, is almost inexistent. Microcredit institutions turn to a di erent technique to ensure high repayment rates; they follow the loan using training and weekly meetings. However, this procedure has high costs and the institutions must plead for donations from public and private gures. Ensuring these donations come with higher repayment rates. Thus, we will observe which characteristic of a group loan has a positive or negative impact on the repayment rates using data from the Quebec institution of the RQCC. These variables range from gender to training hours and will be regressed using stata.

M.Comm. / Microfinance refers to the provision of financial services, in particular small loans in the context of South Africa, to poor people with very small businesses. Commercial banks have largely considered poor people in remote areas unbankable, because they lack collateral and have no credit histories. Microfinance institutions emerged as unconventional institutions with innovative techniques, mechanisms and instruments to advance financial services to this segmented part of the population. This has, however, not been without challenges. Microfinance institutions face a number of challenges such as lack of competent human capital, unfavourable regulatory environment, and insufficient financing. The study examines if these challenges are applicable in the South African context and whether financial and operational inefficiency has hindered microfinance institutions in South Africa from sustainably increasing their outreach through the provision of microcredit. It surveys two microfinance institutions, characterised as non-governmental organisations using the group lending methodology to offer microloans to the very poor. The results indicate that microfinance institutions are not on a sound fiscal footing, and large operating expenses have resulted in some form of inefficiency. This has, however, not hindered the microfinance institutions from reaching a greater number of borrowers. The witnessed increased outreach in number of clients reached is considered unsustainable given the existence of inefficiency and financial weakness. The results suggest a number of policy options on the side of government and the institutions concerned. Increasing the funding sources available to microfinance institutions should be considered by both government and private institutions. This policy would succeed if microfinance institutions work at reducing their operational costs and become both efficient and sustainable so as to be seen as viable investment options.

Thesis (M.M. (Finance & Investment))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration, 2013. / This research work explores the risks that microfinance institutions (MFIs) face in their operations and the risk management strategies they adopt to mitigate their risks. Microfinance institutions serve some of the world’s most financially challenged population who otherwise would not have access to banking services. Risk management within the context of microfinance banking has gained importance within the last decade due partly to the fact that most MFIs are adopting business/profitability principles in their operations. Also, due to the recent financial crisis, MFI cannot afford to be indifferent to risk management practices in the battle for survival, financial sustainability and self-sufficiency. The data for this study is from both secondary and primary sources; 48 MFIs in Ghana responded to a questionnaire made up of 25 questions. Analysis of the responses obtained was done using Chi-Square test of equal proportions, P-values and other descriptive statistics. The Analysis found that the microfinance institutions surveyed are aware of the types of risk inherent in their line of business and do in varying ways employ some form of risk management strategies to mitigate losses and enhance profitability. Since credit granting stands at the core of the operations of MFIs, the management of risk as a result of the credits extended is crucial for their survival and profitability.

The present master thesis deals with non-banking microfinance institutions and examines its abilities and role in the poverty alleviation process. It is more than necessary to pay attention to the rural sector and its development as any successful transition of the economy requires transition of the rural sector as well. In many transition economies people in the rural areas continue to live on the edge of poverty, engaged in subsistence agriculture and remain susceptible to wide range of shocks. In such countries rural population unlike urban one did not benefit to the same extend from transition and need special attention and supporting policy measures. Due to low penetration rate of microfinance institutions into rural areas, lacking or insufficient size of collateral, financial illiteracy many poor but active man face problems to obtaining finance for the development of new income opportunities. In this context the master thesis emphasizes the role of savings and credit associations, which unlike the commercial banks operate mainly in rural sector, have the most significant effect on poverty alleviation. Finally, the author analyses the activity of 3 non-banking microfinance institutions of the Republic of Moldova and uses publicly available data to calculate the outreach, efficiency and...

Microbusiness is recognized as an important tool for economic growth especially in less developed countries. It is supposed that a lack of access to capital is one of the most prominent constraints of microentepreneurs. To address this limitation, many forms of loan guarantee programs have been established. This paper examines what demands are placed on an effective guarantee structure in this field and how these aims are accomplished by the current guarantee funds. In conclusion, the access to capital is getting better recently in these countries. Guarantee funds have been growing, however, their importance is not so significant yet. Guarantee funds have a potential to draw an attention of investors to microlending but the cost of these schemes seems to be too high.

L’émergence de la micro-finance a été vue comme un remède pour un grand nombre de problèmes sociaux issus de la pauvreté en vertu de son efficacité dans l’octroi de crédits, dans l’amélioration de l’équité sociale ainsi que dans la réduction du niveau de pauvreté. Des millions de foyers en dessous du seuil de pauvreté n’ayant pas accès aux services bancaires ont ainsi pu accéder à des services financiers au travers de programmes de micro-finance. Cependant, le développement de la micro-finance ne suit pas un modèle identique pour tous les pays et les Institutions de Micro-finance (IMF) ont eu différents degrés de rentabilité. Beaucoup d’entre elles doivent encore faire face à des contraintes majeures pour fournir de manière efficace des services de micro-finance rentables. L’expansion des programmes de micro-finance reste un grand défi qui fait barrière au développement du secteur de cette dernière. Quelles pourraient être les raisons expliquant cette inefficience ?Cette thèse a pour but de contribuer à l’état des connaissances actuelles ainsi qu’aux recherches sur le développement et les caractéristiques du secteur de la micro-finance en analysant les facteurs stratégiques pouvant avoir un effet sur son développement dans le contexte du Vietnam.Pour ce faire, il sera appliqué à la fois des méthodes de recherche qualitatives et quantitatives.Nous effectuerons une analyse comparative entre l’innovation financière dans le système de micro-finance du Vietnam et deux modèles de référence internationaux : la Grameen Bank et la banque Rakyat d’Indonésie (BRI) afin de déterminer quelles contraintes limitent l’ampleur et la portée des activités de micro-finance au Vietnam ; quels types de modèles de microfinance sont adéquats : que cela soit pour des modèles commerciaux à but lucratif ou pour des projets de micro-finance sociale. Par ailleurs, des analyses empiriques seront portées par les techniques OLS et GMM afin d’examiner l’impact de l’environnement institutionnel ainsi que des facteurs macroéconomiques sur la rentabilité des IMF’s. Les résultats donnent la preuve d’une persistance de la rentabilité et de l’existence d’économies d’échelle en micro-finance. La qualité des prêts semble être un facteur déterminant concernant la rentabilité des IMF’s au Vietnam. Notre analyse confirme également le rôle important de l'État ainsi que le rôle décisif dans l'auto-innovation des institutions de microfinance. / The appearance of microfinance has been known as a remedy for many social ills rooted in poverty because of its efficacy in credit dispensation, social equality enhancement and reduction of poverty. Millions of poor and non-bankable people in developing countries have been provided access to formal financial services through microfinance programs. However, the development of microfinance is not a single model for all country and microfinance institutions (MFIs) have had various degree of sustainability. Many MFIs still face major constraints in their pursuit of effectively delivering microfinance services profitably. Expansion of microfinance programs remains a formidable challenge for the development of microfinance industry. What would be reasons for that inefficiency?This thesis seeks to contribute to the current state of knowledge and research thoroughly on the development and the characteristics of microfinance industry by investigating strategic factors affecting microfinance development in Vietnam context. It applies both qualitative and quantitative research methods.We develop comparative analysis between financial innovation of Vietnam microfinance system and two other international benchmarks namely Grameen Bank in Bangladesh and the Bank Rakyat of Indonesia (BRI) to figure out what constraints limit the scale and scope of Vietnam microfinance activities; what types of microfinance models are suitable: whether for-profit commercial models or social microfinance ventures in Vietnam context. Besides, empirical work is carried out using both OLS and GMM techniques to examine the impact of institutional environment as well as macroeconomic factors on MFIs’ profitability. The results present evidence on a dynamic role of profitability and economies of scale in microfinance. Loan quality seems to be a very important determinant of MFI’s profitability in Vietnam. Our analysis also confirms the significant role of State level as well as the decisive role in self-innovation of microfinance institutions.

Microfinance is the provision of credit/loans to poor individuals for the purpose of income generation. The Sub-Saharan African region which is among the poorest areas in the world is thought to be one of the regions where the microfinance industry is dynamic and growing in terms of acceptance and patronage. Even though microfinance in the Sub-Saharan Africa region has received a lot of research attention, most have focused largely on the financial performance whilst there is no available information on project management practices in new product development.Since project management is considered to be an effective means of managing new product development, the purpose of this work was to investigate the practice of project management in new product development in microfinance institutions in Sub-Saharan Africa and to assess which project management methods, and tools and techniques are used.A case study was adopted and a semi-structured interview through telephone/Skype was conducted on eight senior management staff from different microfinance institutions. The respondents comprised five Non-governmental organizations, two Non-Bank financial institutions and one Commercial Bank, operating in Angola, Gambia, Ghana, Mozambique, Namibia and Kenya.The empirical findings were that six of the microfinance institutions are involved in new product development whilst two of the institutions which are Non-governmental organizations are not. The main product that is developed by these microfinance institutions is credits/loans. The reason for new products development was to meet clients’ needs even though competition and the need to be innovative was also a factor.This research also shows that the six microfinance institutions that are into new product development organize product development through projects. Project management is the means through which new products are developed. In addition, projects are managed either solely by each microfinance institution or done in collaboration with other institutions.A further indication based on project management steps suggests a flexible practice of project management in developing new products as project management steps are not tightly followed. The project management methods that are used in developing new products in all these institutions was the in house method as all the respondents considered it an effective way because this method is adapted to their institutional structure.In addition, the commonly used tool and technique among all the institutions was the progress reports which contained necessary information for monitoring and evaluating of the projects.