 Financial Inclusion of the Poor in Peru: Explanatory factors and determinantsAna Marr, Janina Leon () and Fatima Ponce Applied Econometrics and International Development, 2014, vol. 14, issue 1, 101-122 Abstract: Following current debate about possible trade-off between financial sustainability and social performance of microfinance institutions (MFIs), this paper explores the extent to which these institutions are capable of expanding ‘financial inclusion’ i.e. provision of financial access to those with no prior access to the financial system. By looking at one of the most dynamic microfinance markets in the world, Peru, the study analyses the factors that help explain the degree of financial inclusion by MFIs of previously-excluded clients, usually poor people. The research shows that statistically significant determinants of financial inclusion are related to MFIs’ asset value and maturity. Importantly, it is also found that alliances established by MFIs with nationwide domestic financial institutions contribute to MFIs’ ability to reach a greater number of people, while there is no statistical significance about the specific economic activity in which the micro-credit is used. Consequently, research findings support our policy recommendations of introducing mechanisms to help strengthen MFIs’ assets and their ability to engage in working relations with other actors in the microfinance system. Date: 2014 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:14:y:2014:i:1_8 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.