Crisis in microfinance institutions: identifying problems

This article empirically analyses the reasons for crises in microfinance institutions (MFIs), using a sample of 832 MFIs from 74 countries for the period 2003-2011. The methodology used is logit analysis with panel data. The main results show that both internal and external factors influence the pro...

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Detalles Bibliográficos
Autores: Sainz Fenández, Isabel, Torre Olmo, Begoña|||0000-0001-6081-9868, López Gutiérrez, Carlos|||0000-0003-1703-6440, Sanfilippo Azofra, Sergio|||0000-0001-8941-2033
Tipo de recurso: artículo
Fecha de publicación:2015
País:España
Institución:Universidad de Cantabria (UC)
Repositorio:UCrea Repositorio Abierto de la Universidad de Cantabria
Idioma:inglés
OAI Identifier:oai:repositorio.unican.es:10902/9618
Acceso en línea:http://hdl.handle.net/10902/9618
Access Level:acceso abierto
Palabra clave:Microfinance
Crisis
Panel data
Descripción
Sumario:This article empirically analyses the reasons for crises in microfinance institutions (MFIs), using a sample of 832 MFIs from 74 countries for the period 2003-2011. The methodology used is logit analysis with panel data. The main results show that both internal and external factors influence the probability of a crisis. We find different factors that reduce the likelihood of a crisis (company’s performance, country’s economic growth, political stability and existence of a private credit bureau). On the other hand, excessive liquidity, a higher proportion of deposits over loans and more loans per employee all increase the probability of a crisis.