Does commercial microfinance belong to the financial sector? Lessons from the stock market

Marie Briere and Ariane Szafarz

Post-Print CEB, 2015, vol. 67, 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: Bangladesh; Indonesia; Kenya; Mexico; Microfinance; South Africa (search for similar items in EconPapers)
Date: 2015
Note: SCOPUS: ar.j
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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Related works:
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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