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Outreach and Performance Analysis of Microfinance Banks in Pakistan

Author

Listed:
  • Syed Mohsin

    (COMSATS University, Abbottabad Campus, Pakistan.)

  • Malik Fahim Bashir

    (COMSATS University, Abbottabad Campus, Pakistan.)

  • Yasir Bin Tariq

    (COMSATS University, Abbottabad Campus, Pakistan.)

Abstract

This paper investigates the outreach, performance, and a trade-off between both outreach & performance of microfinance banks in Pakistan. The sample consists of five scheduled microfinance banks and data ranging from 2008 to 2014, collected from the Mix Market international database. Using 13 ratios of outreach and 32 ratios of performance, this study used difference of mean test which compares mean values of these ratios against the South Asian benchmarks. The results indicate that the microfinance banks in Pakistan, as compared to the South Asian microfinance institutions, are facing a risky situation because of the poor performance with a low growth in the outreach. Further, results also established that there is no trade-off between outreach and performance. This study suggests that a proper corporate structure and devoted skillful management can play a vital role in making best strategies and policies to solve the problems being faced by the Pakistani microfinance banks.

Suggested Citation

  • Syed Mohsin & Malik Fahim Bashir & Yasir Bin Tariq, 2018. "Outreach and Performance Analysis of Microfinance Banks in Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(3), pages 21-40, September.
    • Handle: RePEc:bec:imsber:v:10:y:2018:i:3:p:21-40
    DOI: dx.doi.org/10.22547/BER/10.3.2
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    References listed on IDEAS

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    Cited by:

    1. Fozia Taj & Kashif Rashid & Yasir Bin Tariq, 2019. "Role Of Managerial Competencies And Risk-Taking Behavior In Financial Service Outreach Of Microfinance Banks In Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 15-13.
    2. Fozia Taj & Kashif Rashid & Yasir Bin Tariq, 2019. "Role Of Managerial Competencies And Risk-Taking Behavior In Financial Service Outreach Of Microfinance Banks In Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 24-42.

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    More about this item

    Keywords

    Microfinance banks; outreach; performance; ratio analysis; emerging economies.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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