Depth of outreach and financial sustainability of microfinance institutions

Shakil Quayes

Applied Economics, 2012, vol. 44, issue 26, 3421-3433

Abstract: The primary justification for subsidizing Microfinance Institutions (MFIs) is their enhancement of social welfare by extending credit to the poor households. Therefore, recent emphasis on their financial self-sufficiency has created concern, that this may adversely affect the mission of social outreach. Utilizing data from 702 MFIs operating in 83 countries, this study shows empirical evidence of a positive complementary relationship between financial sustainability and depth of outreach.

Date: 2012
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DOI: 10.1080/00036846.2011.577016

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