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Influence of External Funding on Microfinance Performance

Author

Listed:
  • Janda, Karel
  • Van Tran, Quang
  • Zetek, Pavel
Abstract
The aim of paper is to determine whether macroeconomic development and the size of banking sector affect the range of external funding and consequently the importance of these debt sources for microfinance performance. Our findings reveal that the growth of external sources is positively influenced by economic grow, level of corruption, unemployment or under certain conditions by the development of banking sector, as well. Likewise, their presence can have a positive impact on the number of clients, portfolio quality, margin or cost policy of MFIs. The opposite effect can appear if the ratio of external funding to total assets increases over time.

Suggested Citation

  • Janda, Karel & Van Tran, Quang & Zetek, Pavel, 2014. "Influence of External Funding on Microfinance Performance," MPRA Paper 58170, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58170
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    File URL: https://mpra.ub.uni-muenchen.de/58170/1/MPRA_paper_58170.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    microfinance; macroeconomic indicators; banking sector; external funding;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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