Publication:
Financial Performance and Outreach : A Global Analysis of Leading Microbanks

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dc.contributor.authorCull, Robert
dc.contributor.authorDemirgüç-Kunt, Asli
dc.contributor.authorMorduch, Jonathan
dc.date.accessioned2012-06-22T14:53:47Z
dc.date.available2012-06-22T14:53:47Z
dc.date.issued2006-02
dc.description.abstractMicrofinance contracts have proven able to secure high rates of loan repayment in the face of limited liability and information asymmetries, but high repayment rates have not translated easily into profits for most microbanks. Profitability, though, is at the heart of the promise that microfinance can deliver poverty reduction while not relying on ongoing subsidy. The authors examine why this promise remains unmet for most institutions. Using a data set with unusually high quality financial information on 124 institutions in 49 countries, they explore the patterns of profitability, loan repayment, and cost reduction. The authors find that institutional design and orientation matter substantially. Lenders that do not use group-based methods to overcome incentive problems experience weaker portfolio quality and lower profit rates when interest rates are raised substantially. For these individual-based lenders, one key to achieving profitability is investing more heavily in staff costs-a finding consistent with the economics of information but contrary to the conventional wisdom that profitability is largely a function of minimizing cost.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/02/6553699/financial-performance-outreach-global-analysis-leading-microbanks
dc.identifier.doi10.1596/1813-9450-3827
dc.identifier.urihttps://hdl.handle.net/10986/8770
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3827
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectADJUSTMENT
dc.subjectADVERSE SELECTION
dc.subjectAGENCY PROBLEMS
dc.subjectANALYSIS OF PROFITABILITY
dc.subjectAVERAGE COSTS
dc.subjectBANKS
dc.subjectBENCHMARK
dc.subjectBORROWER
dc.subjectCGAP
dc.subjectCOLLATERAL
dc.subjectCOMMITMENTS
dc.subjectCREDIT MARKETS
dc.subjectDONATIONS
dc.subjectECONOMICS LITERATURE
dc.subjectEXCHANGE RATES
dc.subjectFACE VALUE
dc.subjectFINANCIAL DATA
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL PERFORMANCE
dc.subjectFINANCIAL PERFORMANCE INDICATORS
dc.subjectFINANCIAL RATIOS
dc.subjectFINCA
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGNP
dc.subjectGNP PER CAPITA
dc.subjectGRAMEEN BANK
dc.subjectGROSS NATIONAL PRODUCT
dc.subjectGROSS NATIONAL PRODUCT PER CAPITA
dc.subjectGUARANTOR
dc.subjectINFLATION
dc.subjectINTEREST INCOME
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectLABOR COSTS
dc.subjectLENDER
dc.subjectLENDERS
dc.subjectLOAN
dc.subjectLOAN DELINQUENCIES
dc.subjectLOAN LOSSES
dc.subjectLOAN REPAYMENTS
dc.subjectLOAN SIZE
dc.subjectLOANS TO CUSTOMERS
dc.subjectMFI
dc.subjectMICROBANKING
dc.subjectMICROCREDIT
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INDUSTRY
dc.subjectMICROFINANCE INSTITUTION
dc.subjectMICROFINANCE INSTITUTIONS
dc.subjectMICROFINANCE PRACTITIONERS
dc.subjectMORAL HAZARD
dc.subjectNET OPERATING INCOME
dc.subjectOPERATING EXPENSES
dc.subjectOUTREACH
dc.subjectOWNERSHIP STRUCTURE
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO QUALITY
dc.subjectPORTFOLIO YIELD
dc.subjectPORTFOLIO YIELDS
dc.subjectPROFITABILITY
dc.subjectPROFITABILITY MEASURES
dc.subjectPURCHASING POWER
dc.subjectREGRESSION ANALYSES
dc.subjectRETURN ON ASSETS
dc.subjectROA
dc.subjectSMALL LOANS
dc.subjectSOUTH ASIAN
dc.subjectSTATEMENTS
dc.subjectSUB-SAHARAN AFRICA
dc.subjectSUSTAINABILITY
dc.subjectVILLAGE BANKS
dc.subjectWEALTH
dc.subjectWRITEOFFS
dc.subjectYIELD
dc.titleFinancial Performance and Outreach : A Global Analysis of Leading Microbanksen
dspace.entity.typePublication
okr.crossref.titleFinancial Performance And Outreach : A Global Analysis Of Leading Microbanks
okr.date.doiregistration2025-04-10T10:30:17.321762Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/02/6553699/financial-performance-outreach-global-analysis-leading-microbanks
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.guid466011468340769971
okr.identifier.doi10.1596/1813-9450-3827
okr.identifier.externaldocumentum000016406_20060124163013
okr.identifier.internaldocumentum6553699
okr.identifier.reportWPS3827
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/01/24/000016406_20060124163013/Rendered/PDF/wps3827.pdfen
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Rural Finance
okr.topicMacroeconomics and Economic Growth::Economic Adjustment and Lending
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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