Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market

Marie Brière () and Ariane Szafarz

World Development, 2015, vol. 67, issue C, 110-125

Abstract: This paper is the first to draw a global picture of worldwide microfinance equity by taking full advantage of daily quoted prices. We revisit previous findings showing that investors should consider microfinance as a self-standing sector. Our results are threefold. First, microfinance has become less risky and more closely correlated with the financial sector. This convergence might be followed by a decline in the proportion of women borrowers. Second, microfinance and finance shares have equivalent currency exposure. Last, introducing a self-standing microfinance sector presents few diversification benefits. This paper confirms that microfinance has changed dramatically during the last decade.

Keywords: microfinance; South Africa; Kenya; Indonesia; Bangladesh; Mexico (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (26)

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Journal Article: Does commercial microfinance belong to the financial sector? Lessons from the stock market (2015)
Working Paper: Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market (2015)
Working Paper: Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:67:y:2015:i:c:p:110-125

DOI: 10.1016/j.worlddev.2014.10.007

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