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Determinants of the financial viability of Moroccan microcredit associations: An analysis by panel data
[Les déterminants de la viabilité financière des associations de microcrédit marocaines : Une analyse par données de panel (2003-2017)]

Author

Listed:
  • Mohamed Adaskou

    (Faculté des sciences juridiques, économiques et socialesd’Agadir)

  • Abdelkarim Hssoune

    (Faculté des sciences juridiques, économiques et sociales d’Agadir)

Abstract

Our analysis is aimed at testing not only institutionalist microfinance approach but also, welfarist microfinance approach according to factors such as efficiency, ownership equity founding, size and outreach as well. Relying on theory and empirical analysis, it explores and explains the impact factors of financial sustainability in the straight line of positivist, hypothetical and deductive approaches and the Moroccan context. Using an unbalanced panel model, that study is focused on the financial viability variable which is measured by the operational self-sufficiency ratio. The study period is from 2003 to 2017 and data are from nine Moroccan microcredit associations. Our results make a difference between important and less important factors. The microcredit associations' operational self-sufficiency important factors are successively size, cost per borrower and equity ratio. While the average balance per borrower, whose coefficient is positive and statistically significant, has a lesser influence on the financial viability of microcredit associations. In addition, the number of active borrowers has both weak and negative influence on operational self-sufficiency.

Suggested Citation

  • Mohamed Adaskou & Abdelkarim Hssoune, 2021. "Determinants of the financial viability of Moroccan microcredit associations: An analysis by panel data [Les déterminants de la viabilité financière des associations de microcrédit marocaines : Une," Post-Print hal-04232431, HAL.
    • Handle: RePEc:hal:journl:hal-04232431
    DOI: 10.5281/zenodo.5642834
    Note: View the original document on HAL open archive server: https://hal.science/hal-04232431
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    References listed on IDEAS

    as
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