Financial Sustainability and Poverty Outreach: The Case of Microfinance Institutions in Eastern Europe and Central Asia

2017 ◽  
Vol 29 (1) ◽  
pp. 230-245 ◽  
Author(s):  
Ganna Sheremenko ◽  
Cesar L Escalante ◽  
Wojciech J Florkowski
Keyword(s):  
Eastern Europe ◽  
Central Asia ◽  
Financial Sustainability ◽  
Microfinance Institutions

Drivers of financial and operational efficiency of MFIs: empirical evidences from Eastern Europe and Central Asia

2020 ◽  
Vol 27 (9) ◽  
pp. 2679-2697
Author(s):  
Asif Khan ◽  
Saba Shireen
Keyword(s):  
Eastern Europe ◽  
Central Asia ◽  
Best Practice ◽  
Operational Efficiency ◽  
Microfinance Institutions ◽  
Truncated Regression ◽  
Content Type ◽  
Bootstrap Procedure ◽  
Empirical Results ◽  
Second Stage

PurposeThe study attempts to examine the bias-adjusted financial and operational efficiency estimates of microfinance institutions (MFIs) operating in the Eastern Europe and Central Asia (ECA) region during the financial year 2017–2018. In addition, the study also identifies the responsible factors determining the financial and operational performances of MFIs operating in the ECA region.Design/methodology/approachThe study employs two-stage bootstrap data envelopment analysis (DEA). In the first stage, the authors incorporate the bootstrap procedure in the DEA framework as suggested by Simar and Wilson (2000) to estimate the bias-corrected efficiency scores of 67 sample MFIs. In order to identify the drivers of efficiency level, the study deploys the bootstrap truncated regression model following the Simar and Wilson (2007) guidelines in the second stage of analysis.FindingsThe authors note from the empirical results that MFIs operating in the ECA region are relatively more financially efficient (0.588) than socially efficient (0.496). However, none of the MFIs were found to be operating at best-practice frontier while considering the bias-adjusted efficiency estimates. Further, the results of second stage of analysis confirm that corporate governance, that is, board size has positive and statistically significant impact on MFIs’ performances. In addition, the bad credit quality deteriorates both financial revenue and operational efficiency. Moreover, the MFIs’ size, profit status and debt-to-equity ratio were also found to be statistically significant to determine the operational and financial efficiency of MFIs in the ECA region.Practical implicationsThe study provides the robust efficiency estimates and factors responsible to determine the financial and operational efficiency of MFIs operating in the ECA region. Further, the empirical results of the study provide the inputs and further direction to the policymakers, regulators, practitioners and managers in framing the policy and optimal operating strategies for ECA MFIs industry.Originality/valueThe study extends the DEA analysis by incorporating the bootstrap procedure in DEA model to estimate the bias-adjusted efficiency scores which are more reliable and robust. In addition, bootstrap truncated regression has been applied to identify the drivers of efficiency. Moreover, in the literature there is no single study which has deployed the double bootstrap DEA framework to examine the financial and operational efficiency estimates and its drivers.

Performance and Capital Structure of Microfinance Institutions in Eastern Europe and Central Asia

2017 ◽  
Vol 55 (5) ◽  
pp. 395-419 ◽  
Author(s):  
Knar Khachatryan ◽  
Valentina Hartarska ◽  
Aleksandr Grigoryan
Keyword(s):  
Capital Structure ◽  
Eastern Europe ◽  
Central Asia ◽  
Microfinance Institutions

Averting AIDS Crises in Eastern Europe and Central Asia

2003 ◽  
Author(s):  
Olusoji Adeyi ◽  
Enis Baris ◽  
Sarbani Chakraborty ◽  
Thomas Novotny ◽  
Ross Pavis
Keyword(s):  
Eastern Europe ◽  
Central Asia

scholarly journals Microfinance institutions’ operational self-sufficiency in sub-Saharan Africa: empirical evidence

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Laxmi Remer ◽  
Hanna Kattilakoski
Keyword(s):  
Empirical Evidence ◽  
Cost Management ◽  
Sub Saharan Africa ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Return On Assets ◽  
Industry Development ◽  
Management Measures ◽  
Self Sufficiency ◽  
Sub Saharan

AbstractThe topic of financial sustainability in microfinance institutions has become more important as an increasing number of Microfinance Institutions (MFIs) seek operational self-sufficiency, which translates into financial sustainability. This study aims to identify factors that drive operational self-sufficiency in microfinance institutions. To accomplish this, 416 MFIs in sub-Saharan Africa are studied and several drivers for operational self-sufficiency are empirically analyzed. Results indicate that these drivers are return on assets, and the ratios total expenses/assets and financial revenues/assets. The results imply that MFIs should encourage cost-management measures. They also reveal that there may not be a significant tradeoff in self-sufficiency and outreach. These findings will enable microfinance institutions worldwide to sharpen their institutional capabilities to achieve operational self-sufficiency and also provide policymakers with more focused tools to assist industry development.

scholarly journals Vaccine Hesitancy and Demand for Immunization in Eastern Europe and Central Asia: Implications for the Region and Beyond

2020 ◽  
Vol 25 (10) ◽  
pp. 808-815
Author(s):  
Rafael Obregon ◽  
Mario Mosquera ◽  
Sergiu Tomsa ◽  
Ketan Chitnis
Keyword(s):  
Eastern Europe ◽  
Central Asia ◽  
Vaccine Hesitancy

scholarly journals Rabies in the Middle East, Eastern Europe, Central Asia, North Africa: Building

2021 ◽  
Author(s):  
Emma Taylor ◽  
Victor Del Rio Vilas ◽  
Terence Scott ◽  
Andre Coetzer ◽  
Joaquin M. Prada ◽  
...  
Keyword(s):  
Middle East ◽  
Eastern Europe ◽  
Central Asia ◽  
North Africa
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