We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Microfinance institutions, financial intermediation and the role of deposits.
- Authors
Tang, Jiali Jenna; Quayes, Shakil; Joseph, George
- Abstract
Microfinance institutions (MFIs), widely regarded as bankers to the poor, have extended their financial functions beyond lending to managing deposits. We empirically examine the influence of MFI deposit‐taking on MFI financial performance. Using data of 1,301 MFIs worldwide, we find that an MFI's deposit level is an important determinant of its financial viability. However, the relationship is influenced by MFIs' institutional type (for‐profit or nonprofit) and the legal environment (common law or civil law). The results suggest that the positive financial impact of deposits has not been fully realised, reflecting the need to further improve cost management and revenue generation.
- Subjects
INTERMEDIATION (Finance); MICROFINANCE; FINANCIAL performance; COST control; REVENUE management
- Publication
Accounting & Finance, 2020, Vol 60, Issue 2, p1635
- ISSN
0810-5391
- Publication type
Article
- DOI
10.1111/acfi.12506