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An analysis of the mission drift in microfinance

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  • Shakil Quayes

Abstract

With the expansion in the microfinance industry and an increase in the number of microfinance institutions (MFIs), there is some apprehension that MFIs may be deviating from their mission of catering to the poor, in an effort to augment their profitability. This mission drift would typically manifest in a reduction in allocation of credit to the poor (depth of outreach) and to women. Using a sample of 1591 MFIs over a sixteen-year period, this study shows empirical evidence of a general increase in depth of outreach and no reduction in outreach to women over time, refuting claims of mission drift.

Suggested Citation

  • Shakil Quayes, 2021. "An analysis of the mission drift in microfinance," Applied Economics Letters, Taylor & Francis Journals, vol. 28(15), pages 1310-1316, September.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:15:p:1310-1316
    DOI: 10.1080/13504851.2020.1813240
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    Cited by:

    1. Hoque, Md Mahfuzul & Kummer, Tyge-F. & Yigitbasioglu, Ogan, 2024. "How can blockchain-based lending platforms support microcredit activities in developing countries? An empirical validation of its opportunities and challenges," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    2. Mia, Md Aslam, 2022. "Do women on boards affect employee benefits? Evidence from the global microfinance industry," Economics Letters, Elsevier, vol. 210(C).

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