This master thesis deals with the theme of microfinance as a modern form of development aid in the world and analyzes the microfinance sector in Latin America, with a sharper focus on country Mexico. The work is divided into four chapters, which tries to answer two predetermined hypotheses. The first chapter is devoted to the question of poverty and the definition of microfinance and microfinance institutions. The second chapter focuses on microfinance as an investment opportunity for investor and describes the typical recipient of microloans. Another section is specifically focused on the analysis of the microfinance sector in LA and Mexico from year 2007 to 2012. At the end of the work are presented selected MFI in Mexico: the MFI FINCA and MFI Pro Mujer.

The aim of this thesis is to contribute to the debate on microfinance commercialization, using the case of Chile. Another purpose of this thesis consists in mapping the field of microfinance in Chile. The hypothesis that is examined in this study is whether the commercialization of microfinance in Chile has brought opportunities and trade-offs with respect to poverty alleviation in the country. The methodology used in order to gain understanding of several aspects of commercialization of the microfinance sector in Chile is descriptive statistics accompanied by a qualitative analysis of the demand side of microfinance. To this end, interviews were conducted with several microfinance institutions and specialists. The results of the study indicate that the commercialization of microfinance in Chile has indeed brought opportunities and trade-offs with respect to poverty alleviation in Chile. Two opportunities that this study defines, are the increase in the scale of outreach and the increase of geographical outreach. Secondly, in contrast to these opportunities, a tendency for the commercialized microfinance institutions to pay less attention to the poorest segment of the Chilean population, is defined as a trade-off of the commercialization of microfinance.

Diploma thesis aims at analysing impacts of microfinance on economimies of particular countries in Central Asia region. Kyrgyzstan, Tajikistan and Kazakhstan were chosen for the analysis. First part of the thesis characterizes socioeconomic development and situation in selected countries. Second part of the thesis analyses specific form of microfinance and governments' attitude to this area of financial sector. The last part of the thesis compares impacts of microfinance on chosen economies with each other. It also deals with comparation of microfinance system in Central Asia and vision of Muhammad Yunus, pioneer of modern microfinance.

In the following paper I have tried to find the correlation between type of ownership and effective risk management in the operations of microfinance institutions in India. The results found are consistent with the current findings of how the type of ownership does not impact both the financial or social performance of MFIs. Dataset of 72 MFIs was acquired from the Microfinance Information Exchange on MFIs and evaluated using an OLS regression. The results show that the type of ownership insignificantly impacts both the credit and liquidity risk ratios of MFIs. It is possible that the impact of ownership type is more evident in other aspects of operations. In the future, a study on type of ownership and exposure to strategic and market risks could be a way forward.

Poverty is an extremely significant issue for Indian society with some estimates suggesting that up to 75% of the Indian population may be poor and deprived of basic necessities to sustain a normally healthy life. Microfinance and social protection are considered as important micro-level strategies to reduce poverty. Literature reveals that both strategies suffer from significant service delivery constraints causing exclusion of a large majority of poor households from access to microfinance, and inclusion and exclusion errors and elite capture of social protection programmes. This research explored whether outreach of microfinance and impact of social protection may be enhanced if microfinance products are built on the provisions of social protection for the poor households, and services of microfinance and social protection are synergistically delivered leveraging on the strengths of each other. The research further explored if it is feasible to employ a State institution, India Post, towards such synergistic service delivery. In order to further these research objectives, financial needs of poor households were estimated, and structures and mechanisms causing the exclusion of the poor from microfinance were investigated, by drawing empirical data from three Indian states. States were sampled while acknowledging that the poor are largely excluded from microfinance in two states of UP and Gujarat, and are almost totally included in the state of AP. This provided me with an opportunity to identify structures and mechanisms excluding the poor from microfinance provisions in UP and Gujarat, and contrast it with the situation in AP to further refine and enrich our understanding. Philosophical basis for design and methodology for this research is provided by critical realism, according to which the goal of social research is to understand the world in order to change it for better. The research is primarily based on the data collected through qualitative research methods as such methods are more suited than quantitative methods to critical realistic intensive studies, attempting to uncover underlying structures and mechanisms causing a social phenomenon. Research findings suggest that the financial needs of poor households in UP and Gujarat either remain unmet, or are met through informal mechanisms which are costly and exploitative. Poor are also not able to entirely access their entitled benefits from social protection programmes; as such programmes generate their own financial needs, which remain largely unmet. It was observed that social protection programmes have a favourable political environment in India and are being increasingly employed as a means to fight poverty. Such programmes therefore constitute an important aspect of the financial environment of the poor. Microfinance programme in AP reaches the poor partly because it is also meeting the financial needs generated by the provisions of social protection and thus the poor households find it useful. Poor also become attractive clients for microfinance due to the assured benefits they receive from the social protection programmes. Thus it addresses both demand and supply side constraints which keep a majority of the poor out of the ambit of microfinance in UP and Gujarat. Such social protection-linked service delivery of microfinance was further observed to be enhancing the impact of social protection as well as of microfinance. It is further argued that India Post is suitably located to deliver such social protection-linked microfinance services due to its close proximity to the rural population, and its personnel being known to and trusted by the local communities. India Post network also has a long and rich experience of delivering financial services. Being a government department, it is in a better position than similarly placed agencies such as banks and NGOs, to coordinate with other government departments offering social protection. Moreover, it has a valuable information-capital on the households that can be leveraged to efficiently identify the prospective recipients of the social protection programmes.

Microfinance research concerns addressed in this thesis relate to: (1) targeting of clients vis-à-vis financial sustainability; (2) loan size effect of interest rate and clients’ well-being status; (3) economic governance and the dual objectives of microfinance institutions; and (4) patterns, trends and drivers of microfinance institution’s efficiency. The thesis emphasises operational issues that affect institutional performance and outreach of microfinance institutions rather than impact of microfinance intervention on poverty reduction. The thesis revolves around four empirical chapters that seek to address the above research concerns. Both micro and macro-level analyses have been explored with the aim of identifying institutional and public policies that drive the success of microfinance interventions. Micro level data from households in Ghana and cross country data mainly from the Microfinance Information Exchange (MIX) market are used. Varied microeconometric techniques (ordinary least squares, instrumental variable estimation, quantile regression, pooled regression, fixed and random effects estimations, Hausman-Taylor, Fixed Effects Vector Decomposition, stochastic frontier analysis and non-parametric efficiency estimations) are used depending on the hypotheses being considered in each of the empirical chapters. The main findings are: observed trade-off between financial sustainability and reaching poorer clients; formal institutions dispensing their own funds target poorer clients; pronounced variations in responsiveness of loan size to interest rate changes; semi-elasticity of loan amount responsiveness to a unit change in interest rate is more than proportionate and very significant for the poorest group; lesser time in securing property and availability of credit information show positive effects in targeting poorer clients; both type (pure technical and scale) and scope (narrow and broad) of financial efficiency show varying trends; and lastly, negative effects of bureaucracies in property registration and lack of credit information on social efficiency are also observed. This thesis suggests the following recommendations both for management of microfinance institutions and other stakeholders including international microfinance investors and government: harmonizing microfinance programmes irrespective of the source of funds; segmenting microfinance outreach markets based on socio-economic well-being; curtailing bureaucracies in property registration; and providing credit related information. These are paramount to the success of the microfinance paradigm, especially in achieving its social objective.

The thesis analyzes two forms of International Development Cooperation, particularly Microfinance and Interregional Cooperation. The goal is to stress these forms and find suitable models for their application in the Czech environment.

The challenging living conditions of many Senegalese families, and the absence of a providing spouse, have led women to covet new economic opportunities, such as microcredit loans. These loans offer Senegalese women the possibility to financially support their households and become active participants in their economies by starting or sustaining their micro businesses. The study takes place in Grand-Yoff, an overpopulated peri-urban area of the Senegalese capital city Dakar, where most people face daily survival issues. This research examines the impact of microcredit activities in the household of Senegalese female loan recipients in Grand-Yoff by examining socio-economic indicators, in particular outcomes of health, education and nutrition. The research total sample is constituted of 166 female participants who engage in microcredit activities. The research combines both qualitative and quantitative methods. Data for the study were gathered through interviews, surveys, participant observation, focus-groups with the study participants and some of their household members, and document analysis. While some women in the study make steady profits from their business activities, others struggle to make ends meet from their businesses’ meager or unreliable profits. Some study participants who are impoverished have no choice but to invest their loans directly into their households’ dire needs, hence missing their business prerogative. Many women in the study end up in a vicious cycle of debt by defaulting on their loans or making late payments because they do not have the required household and socio-economic conditions to take advantage of these loans. Therefore, microcredit does not make a significant impact in the households of the poorest female participants. The study finds that microcredit improves the household well-being - especially nutrition, health and education - of the participants who have acquired significant social capital such as a providing spouse, formal education, training, business experience, and belonging to business or social networks. The study finds that microcredit’s household impact is intimately tied to the female borrowers’ household conditions and social capital. It is recommended that microcredit services and programs offer their female clients assistance and additional basic services, financial guidance, lower interest rates, and flexible repayment schedules.

Thesis (M. Dev.) --University of Limpopo, 2013 / Rural areas of Zimbabwe suffered acute shortage of banking services. Conventional banks feared high transaction costs and lack of collateral associated with this market segment. This research aimed at evaluating impact of microfinance on rural farming sector. Finding out the general banking and microfinance situation, appraising scheme impact and making recommendations were the research’s objectives. A descriptive research design was used. A population of 3,400 members constituting 289 Investment Groups (IGs) was used. Quota and purposive sampling were used to select 20 IGs and 154 individual respondents. Sample survey, Focus Group Discussions (FGD) and Key Informant Interviews (KII) were data collection methods. The survey findings showed that the five Department For International Development’s (DFID’s) Sustainable Livelihoods Approach (SLA) asset bases increased more for the treatment than the control groups, signifying microfinance impact. Wealth ranking, meant to triangulate survey results, depicted upward mobility of groups; old ones transcending to rich categories while the new moved into top poor rank, also demonstrating impact. Further, scheme achieved women empowerment basing on their numerical predominance and improved self-confidence, signifying impact. The study recommends that Farmers’ Association of Community self-Help Investment Groups (FACHIG) resuscitated its savings component using the Self-Help Group (SHG) thrift approach to ensure scheme sustainability. In addition, climate change, a phenomenon which increased droughts, could have dampened impact. However, the research did not delve into this area, compelling a future study.

Microfinance institutions (MFIs) are an important tool of poverty reduction which has gained grounds over the years and grown rapidly given the services they provide. The rapid growth of the MFIs has had huge challenges on their regulatory framework which in turn has resulted in the prevalence of fraudulent cases. With the devasting effects of fraud on MFIs and the importance of MFIs in many economies this thesis aims to examine how the design and use of internal control impact fraud detection and prevention in MFIs. To achieve this aim, a qualitative study was conducted with a case study on eight MFIs in Cameroon. Primary data will be obtained from fourteen semi-structured interviews. Data will be analysed manually using thematic analysis. The findings revealed that internal control has a positive impact on fraud detection and prevention in MFIs by reducing fraud incentive, opportunity, rationalization, and capability. Further, findings revealed that the greatest causes of fraud in MFIs are poor remuneration, weak monitoring, and a poor internal control system. Therefore, for the purpose of future fraud prevention, MFIs should ensure to improve their remuneration schemes, improve1 their monitoring system and ensure regular internal control system updates in term of software and design. The study also, suggests further research on this topic in MFIs with a case study in other countries of the world. It will also be interesting for other researchers to explore how the aspect of capability as a key determinant of fraud can be reduced. This thesis contributes to academic literature as there is lack of studies on the impact of internal control on fraud detection and prevention in MFIs.