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Social Accountability of Microfinance Institutions in South Asian Region

Author

Listed:
  • Iftekhar Ahmed

    (School of Economics, Finance & Banking, College of Business, Universiti Utara Malaysia, Kedah, Malaysia,)

  • Abul Bashar Bhuiyan

    (Faculty of Business, Universiti Selangor, Selangor, Malaysia,)

  • Abul Bashar Bhuiyan

    (Accounting Research Institute, Universiti Teknologi MARA, Selangor, Malaysia,)

  • Yusnidah Ibrahim

    (School of Economics, Finance & Banking, College of Business, Universiti Utara Malaysia, Kedah, Malaysia,)

  • Jamaliah Said

    (Accounting Research Institute, Universiti Teknologi MARA, Selangor, Malaysia,)

  • Mohammed Fuad Mohd Salleh

    (Faculty of Business, Universiti Selangor, Selangor, Malaysia.)

Abstract

The purpose of the study is to examine the social accountability and argue comparison of outreach level of microfinance institutions (MFIs) in member countries of South Asian Association for Regional Cooperation. The inquiry has employed quantitative research approach to meticulous secondary data that has quantify using financial ratio and multiple regression analysis. Our results expose that gross loan portfolio (GLP) has significant positive relation with the number of clients served. Conversely, the average loan balance per borrower per gross national income per capital and average outstanding balance have significant negative relation to the dependent variable. On the other hand, the yield on a GLP, size of MFIs and operational self-sufficiency has insignificant effect to the number of active borrowers. Eventually the study found no evidence of trade-off between profitability and outreach breadth. However, interest rate, board and ownership structure and outreach depth issue suggested for the further studies.

Suggested Citation

  • Iftekhar Ahmed & Abul Bashar Bhuiyan & Abul Bashar Bhuiyan & Yusnidah Ibrahim & Jamaliah Said & Mohammed Fuad Mohd Salleh, 2016. "Social Accountability of Microfinance Institutions in South Asian Region," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 824-829.
    • Handle: RePEc:eco:journ1:2016-03-1
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    References listed on IDEAS

    as
    1. Hartarska, Valentina, 2005. "Governance and performance of microfinance institutions in Central and Eastern Europe and the Newly Independent States," World Development, Elsevier, vol. 33(10), pages 1627-1643, October.
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    4. Robert Cull & Asli Demirguç-Kunt & Jonathan Morduch, 2007. "Financial performance and outreach: a global analysis of leading microbanks," Economic Journal, Royal Economic Society, vol. 117(517), pages 107-133, February.
    5. Jonathan Morduch, 1998. "Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh," Working Papers 198, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    6. Hartarska, Valentina M., 2005. "Governance and Performance of Microfinance Institutions in Central and Eastern Europe and the Newly Independent States," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24568, European Association of Agricultural Economists.
    7. Valentina Hartarska & Denis Nadolnyak, 2007. "Do regulated microfinance institutions achieve better sustainability and outreach? Cross-country evidence," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1207-1222.
    8. Thorsten Beck & Asli Demirgüç-Kunt & Ross Levine, 2007. "Finance, inequality and the poor," Journal of Economic Growth, Springer, vol. 12(1), pages 27-49, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. M. Abramova A. & S. Dubova E. & O. Zakharovac V. & М. Абрамоваa А. & С. Дубова Е. & О. Захарова В., 2018. "Развитие механизмов регулирования институтов микрофинансирования и кредитной кооперации в целях стимулирования внутреннего инвестиционного спроса // Development of Mechanisms for Regulation of Microfi," Экономика. Налоги. Право // Economics, taxes & law, ФГОБУ "Финансовый университет при Правительстве Российской Федерации" // Financial University under The Government of Russian Federation, vol. 11(6), pages 16-25.
    2. Dorfleitner, Gregor & Nguyen, Quynh Anh & Röhe, Michaela, 2019. "Microfinance institutions and the provision of mobile financial services: First empirical evidence," Finance Research Letters, Elsevier, vol. 31(C).
    3. Crispin John Mbogo, 2024. "Effects of Transformation on Outreach Performance of Microfinance NGOs in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 1972-1987, February.

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    More about this item

    Keywords

    Microfinance; Accountability; Outreach; Mission Drift; South Asia;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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