Microfinance and savings among the poor: evidence from Bangladesh microfinance sector
Shamima Nasrin (),
Angathevar Baskaran () and
Rajah Rasiah ()
Additional contact information
Shamima Nasrin: University of Malaya
Angathevar Baskaran: University of Malaya
Quality & Quantity: International Journal of Methodology, 2017, vol. 51, issue 4, 1435-1448
Abstract Despite rapid financial development, the coverage of the formal banking sector and population holding deposit accounts in Bangladesh (53.7 %) is still below the global average (62 %). As a consequence, Micro Finance Institutions (MFIs) have started providing financial services to these large section of people who have little access to finance otherwise. This paper examines empirically the impact of MFIs on the savings of poor in Bangladesh using the data from Microcredit Regulatory Authority database. The sample comprises 719 MFIs with data over the period, 2007–2012. The results show that MFI numbers and number of branches are positively associated with saving in the sector, which supports the institutional savings theory that posits that availability of financial institutions shapes saving behavior of people. Also, number of employees and number of borrowers positively affect saving. These findings from a large database contributes to the literature on the impact MFIs on savings behavior.
Keywords: Micro Finance Institutions; Savings; Unbanked people; Formal banking sector; Institutional savings theory; Bangladesh (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11135-016-0342-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:qualqt:v:51:y:2017:i:4:d:10.1007_s11135-016-0342-1
Ordering information: This journal article can be ordered from
Access Statistics for this article
Quality & Quantity: International Journal of Methodology is currently edited by Vittorio Capecchi
More articles in Quality & Quantity: International Journal of Methodology from Springer
Bibliographic data for series maintained by Sonal Shukla ().