Performance assessment and definition of improvement paths for microfinance institutions: An application to a network of village banks in Cameroon

Isabelle Piot-Lepetit () and Joseph Nzongang ()
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Isabelle Piot-Lepetit: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Joseph Nzongang: Faculté des Sciences Economiques et de Gestion - Université de Dschang

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Abstract: The objective of this paper is an assessment of the financial and social performance of a network of village banks in Cameroon and the provision of data-driven guidance to managers helping them in their decision making process. An analysis framework in three stages is developed. First, a Data Envelopment Analysis (DEA) analysis is implemented for measuring efficiency, identifying best-practices, and setting goals to less efficient MFIs. Then, a DEA operating frontiers (DEA-OF) model is designed to identify improvement paths setting short-term goals towards their long-term DEA objective and providing effective and time dependent guidance to managers in their efficiency improvement process. Finally, DEA and DEA-OF results are translated into financial and non-financial indicators daily used by managers through three different and interrelated scorecards. Besides, results of this third stage are used for identifying village banks ready for the new phase of development of the network aiming to funding community projects.

Keywords: financial performance; social performance; data envelopment analysis; community growth mutual funds; DEA operating frontiers; benchmarking; financial and social efficiency; performance indicator; improvement path; financial sustainability; outreach to the poor; microfinance; mission drift (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-ban, nep-eff and nep-mfd
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02619461v1
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Citations: View citations in EconPapers (2)

Published in International Transactions in Operational Research, 2019, 26 (4), pp.1188-1210. ⟨10.1111/itor.12572⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02619461

DOI: 10.1111/itor.12572

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