Vliv externího financování na mikrofinanční rozvoj - makro perspektiva

Influence of external funding on microfinance performance - macro perspective

Karel Janda, Quang Tran and Pavel Zetek

MPRA Paper from University Library of Munich, Germany

Abstract: Microfinance institutions (MFIs) finance their business activities primary with clients’ deposits, equity or with external funding. The aim of our thesis is to determine whether macroeconomic development and the size of banking sector affect the range of external funding and consequently the importance of these external debt sources for microfinance performance. Our findings reveal that the growth of external sources is positively influenced by economic grow, level of corruption, unemployment or under certain conditions by the development of banking sector, as well. Likewise, their presence can have a positive impact on the number of clients, portfolio quality, margin or cost policy of MFIs. The opposite effect can appear if the ratio of external funding to total assets is being uncontrollably increased over time.

Keywords: microfinance; macroeconomic indicators; banking sector; external funding (search for similar items in EconPapers)
JEL-codes: G21 H25 O11 O17 (search for similar items in EconPapers)
Date: 2014-08-28
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Citations: View citations in EconPapers (2)

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