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The study applied a systematic literature review to explore financial literacy variables in microfinance institution (MFI) studies. Using manual content analysis, 73 studies identified variables covered in MFIs' financial literacy literature. The study revealed that the majority of scholars have assessed the role of financial literacy in promoting clients' savings, money and mobile money usage, loan repayment and investment. However, few studies focused on variables such as outreach, budgeting, interest rates and women's empowerment. In most of the reviewed studies, regression data analysis was used. The findings indicate that there is a dearth of MFI studies that use the term "financial literacy" and its subvariables. Furthermore, there are no studies that have examined how financial literacy impacts MFI performance variables such as sustainability, profitability, efficiency, credit risk management and corporate governance. In addition, there are a few studies that link financial literacy with MFI theories. Generally, the findings indicate that variables related to financial literacy are not adequately covered in MFI studies. The study recommends the formulation of policies that promote financial literacy training for formal and informal MFIs. This is the first comprehensive systematic review to examine financial literacy variables in MFI studies. [ABSTRACT FROM AUTHOR]

In the era of competitiveness, clients or borrowers remain an important asset for financial institutions, as they are the ultimate source of revenue. Although the departure of clients from one microfinance institution (MFI) to another is a common phenomenon, the manner in which organizational characteristics affect turnover is largely unknown in the context of the microfinance industry. Hence, by utilizing recent (2010-18) data on 235MFIs fromthe global microfinance industry, this study investigates the factors affecting the borrower turnover rates (BTR) of MFIs by employing conventional panel regression techniques. To overcome endogeneity and ensure robust and dynamic results, the generalized method of moments (GMM) has also been used in this study. The findings reveal that the efficiency-wage and financial self-sufficiency of MFIs reduce BTR, while staff turnover rate, write-off ratio and average loan size increase BTR. Our results remain robust even after controlling for several market and macro-economic factors. The findings could be utilized to generate several policy implications to reduce borrowers' turnover. [ABSTRACT FROM AUTHOR]

Microfinance institutions (MFIs) contribute greatly to sustainable development through microlending. This paper establishes a bridge between political stakeholder theory, social responsive theory, and institutional theory as applied to the functioning of MFIs. By establishing a nexus between these theoretical concepts, we investigate whether country‐level socio‐economic freedom, human development, and environmental issues affect the engagement and integration of environmental, social, and governance (ESG) activities by MFIs. Using a sample of 2,064 MFIs from 94 countries for the period 2007 to 2018, we find that MFIs from countries with higher socio‐economic freedom, coupled with higher human development, may adhere to superior ESG policies. We posit that this is due to pressure from stakeholders to incorporate the triple bottom line objectives of 'profit, people, and the planet'. ESG integration is in line with institutional theory and enriched by political stakeholder theory. [ABSTRACT FROM AUTHOR]

In this article, we investigate whether lending institutions perceive smallholder (individual) farmers as riskier borrowers than farm cooperatives. Our research results show that individual farmers in Ghana are less likely to be successful in obtaining credit than cooperative farmers, because they are perceived to be riskier borrowers. In addition, results show that the willingness of lending institutions to provide loans is higher for those farmers who are associated with cooperative societies. This suggests that individual farmers can increase their odds of securing loans by joining a cooperative society. Empirical results also support the hypothesis that the interest rate is a significant predictor of the willingness to loan bias among lending institutions. In addition, our results indicate that higher interest rates are associated with increased loan risk. However, when interest rate is higher, longer loan maturity can dampen the effect of interest rate. In other words, an increase in loan maturity length reduces the effect of interest rate on the loan risk. These research results have important policy implications for the welfare of smallholder farmers in developing economies as lack of financing has a significant impact on smallholder farmer productivity. [ABSTRACT FROM AUTHOR]

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This study primarily investigates the effect of financial sustainability on capital leverage in microfinance setting. In doing this, this study looks at operating performance of 45 commercial microfinance institutions under current dual pressure of downturn and deleveraging in China. Empirically, this study employs the system GMM to observe a robustly small and negative impact of financial sustainability on capital leverage. Furthermore, this study presents a conclusion with evidence by mediation analysis that profitability exhibits a suppressing effect on the relationship between financial sustainability and capital leverage. Theoretically, this study verifies that the impact of financial sustainability on capital structure obeys the pecking order theory. [ABSTRACT FROM AUTHOR]

Microfinance institutions (MFIs) are a prominent financial inclusion initiative in many developing countries. In Zimbabwe, however, less is known about microfinance borrowers, determinants of loan utilisation and borrowers' repayment behaviour. Demonstrating that MFIs serve those who are economically marginalised and traditionally excluded from the formal financial system is useful in a country where most of the economic activities are in the informal sector. This study investigated the factors associated with the utilisation of microfinance loans and delinquency among microfinance borrowers using the Poisson, logit and the zero-truncated Poisson regression models on 6165 unique borrowers in Zimbabwe. The study findings revealed that microfinance loans were significantly more likely to be accessed by low-income individuals, who took small loans with relatively high instalments. Women were less likely to access microfinance loans, and reliable borrowers were more likely to access repeat loans. The level of income, number of previous loans and loan terms explained the delinquency among borrowers. Largely, the findings suggest that microfinance in Zimbabwe serves the needs of the low-income group. However, policies that seek to improve access to credit for women and youth remain a priority. [ABSTRACT FROM AUTHOR]

Copyright of Revista del Centro de Investigación. Universidad La Salle is the property of Universidad La Salle and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study is to assess the credit risk management of MFIs exist in Adama town, Ethiopia.Sound credit risk management is a crucial for a financial institutions stability and continuing profitability, while declining credit quality, the most frequent cause of poor financial performance and condition. Micro finance provides financial support to the unbanked units of the society. Since microfinance is a system that allocates small credits to poor persons in order for them to provide income and start their own small businesses, it has the ability to lessen poverty as well as encourage entrepreneurship, social and economic development for poor people.In any financial institution, the biggest risks in microfinance is loaning money and not getting it back. The study adopted a descriptive survey design. The population of study consisted of serviceprovision sectors in Adamatown MFIs.The study utilized both quantitative and qualitative technic of data analysis. The study involves that customer’sevaluation; credit risk control and collection principle had effect on credit risk management of MFIs in Adama town credit and saving institutions. The study recommends that MFIs should improve their collection policy by adapting a more stringent policy to a lenient policy for effective debt recovery.

The main purpose of this paper is to examine the effects of regulatory efficiency and market openness, two dimensions of competition freedom, on the efficiency of microfinance institutions (MFIs) in both its social and financial aspects. In addition, this study also examines the specific determinants of MFIs and macroeconomic conditions, two other potential variables that may influence MFIs efficiency. Within this study, two stages of analysis were conducted. In the first stage, the data envelopment analysis (DEA) approach was applied to measure the MFIs’ efficiency level, while in the second phase, a panel multiple regression analysis was employed to examine the effect of competition freedom and other determinants on MFIs efficiency. The results suggest that during the study period the main reason for MFIs inefficiency is both social and financial managerial inefficiency. The management of the MFIs failed to utilize their resources fully, leading to waste of resources. Nevertheless, the MFIs had been operating on a relatively optimal scale. In addition, the level of financial efficiency in MFIs was found to be significantly higher than social efficiency. In examining the impact of competition freedom, the freedom of business and monetary factors was found to be significantly negative for MFIs’ social efficiency only. Furthermore, this research stresses that investment freedom and financial freedom are statistically positive for financial efficiency, but negative for the social efficiency of MFIs. This study should prove useful for various institutions and have several implications for MFIs, policymakers, investors and researchers to improve the efficiency level of MFIs.

Microfinance institutions (MFIs) play an important role in enabling poor households to escape poverty. MFIs cannot help borrowers if their own performance is poor. This study evaluates financial performance of Village Funds (VFs) and Saving Groups for Production (SGPs) to determine how well the MFIs are performing financially and how to improve the institutions’ future performances. The study evaluates MFIs’ performance, including MFI characteristics, outreach, productivity, financial structure and financial performance. Data are collected from the annual reports of MFIs between 2014 and 2016. VF and SGP annual reports were collected by the Government Savings Bank between 2014 and 2016. Data are analyzed using descriptive statistics, such as means, to compare the VFs’ and SGPs’ performance. The result shows that SGPs are bigger than VFs in terms of the average number of members and borrowers. However, VFs provide more loans than SGPs to poorer clients. In terms of loan management, SGP staff are more efficient than VF staff. SGPs’ profits are significantly higher than VFs’ profits. In the context of financial structure, SGPs are funded through member deposits, while VFs receive government subsidies. The results indicate that both VFs and SGPs are profitable and financially sustainable.

This paper emphasizes the lending patterns and determinants of the microfinance institutions' profitability in Ethiopian by taking the different levels and ownership microfinance institutions with survey data in an ordered logistic regression model. The variables of the study such as the loan term, collaterals, knowledge for credit, costs of the loan, interest rates, loan size, lending methodology, credit information and credit repayment period have statistically significant and creates the relationships with the microfinance institutions profitability by holding the positive and negative signs. In the underlying study, the directions of the signs of the variables show that the lending patterns of the microfinance institutions support the profitability status and also the other consequences that affect the microfinance institutions' profitability status. Under the results of the study, the lending patterns of the microfinance institutions bring advantages to the microfinance institutions' to recognizes financial sustainability and healthy financial operations. Although the microfinance institutions' profitability determinant shares the other financial institutions' determinant of profitability variables. The study recommends for a future line of studies to undertake the on the determinants of the microfinance institutions' profitability, addresses the study with taking into accounts of the lending patterns of the institutions as internal factors and also other financial institutions determining factors to investigate and accomplishes the future dreams of the microfinance institutions.

The relevance of the development of the credit consumer cooperatives as a promising segment of the credit market has been substantiated. The state of credit consumer cooperatives has been analyzed in the article. The theoretical foundations of the credit consumer cooperatives have been revealed. The main indicators of the credit consumer cooperatives activity have been adduced and analyzed. Directions of activity of the Central Bank in relation to the credit consumer cooperatives have been reflected. The main problems constraining development of credit consumer cooperatives have been identified. Special attention to the insecurity of property interests of shareholders has been paid. Recommendations for improvement of credit consumer cooperatives activities have been presented. The main conclusion is, that the credit consumer cooperatives have a huge financial and credit potential, but in our country they are not yet sufficiently developed. The mechanisms, adduced in the article, could ensure a steady growth of the credit consumer cooperatives’ activities.

This article studies the relationship between portfolio quality and the financial sustainability of microfinance institutions in Kenya. The analysis is based on a panel dataset of 30 microfinance institutions in the period 2010 to 2018. The study is guided by institutional theory which is built on conformance and continuity. The study adopts an explanatory research design where a panel approach is used under positivist paradigm. The study finds that portfolio quality has a positive significant effect on the financial sustainability at 1% statistical significance level. Based on this finding, the study concludes that portfolio quality is an essential element of MFIs financial sustainability. The study recommends that MFIs managers should devise good collection policies to improve portfolio quality while lessening loan default rate. The portfolio quality may improve the overall profitability and enhance investor confidence in their strategic decision-making on refinancing. It is important to note in order to ensure financial inclusion; the stakeholders must be involved.

According to the Global Financial Literacy Survey done by Standard & Poor’s Ratings Services, in 2014 only 35% of adults were financially literate in Sri Lanka. However, Microfinance Institutions (MFIs) were struggling to improve this rate and there is a dearth of research covering this critical area utilizing a qualitative approach. Thus, the purpose of this paper is to focus on the critical, yet an under-researched dimension of Microfinance (MF), the intercession of MFIs in delivering FL to the MF clientele focusing on profiles such as delivering channels, importance, constraints and strategies to address. The multiple case study method was used in this study as the research methodology. The data were gathered from a purposive sample using in-depth interviews. The findings show that channels of delivering Financial Literacy (FL) are Social Mobilization Programmes, seminars, training programmes, community committees, and credit societies, and the importance of delivering FL is; enhancement of human capital, the sustainability of industry and firm, upgrade new venture survival, client protection, social and economic empowerment and development. Further, the barriers to deliver FL; budget, industry competition, in active participation, attitudes of clients, the contribution of inactive regulatory bodies and external barriers were investigated with the strategies adopted in addressing barriers; community awareness, motivational strategies, regulatory framework and cost addressing strategies. These findings contribute to both the knowledge and practice domains. They have implications for policy makers in paying attention to make a financially literate clientele in the MF discipline.

ABSTRACT Purpose: The purpose of this research is to examine the impact of internal corporate governance mechanisms on the social performance of microfinance institutions of Pakistan. Design/Methodology/Approach: A survey questionnaire was used to collect data. Data were collected manually and online (Google survey form). The data collected were analyzed through Smart PLS. Findings: The results showed that board of directors, board meetings and frequency of board meetings as components of internal corporate governance mechanism have a positive and significant impact on the social performance of microfinance institutions of Pakistan. Implications/Originality/Value: The originality and contribution of this study is that this is the first study that analyzed the impact of board of directors, board meetings and frequency of board meetings as a component of internal corporate governance mechanism on the social performance of microfinance institutions of Pakistan.

The following contribution investigates the main determinants that impact the financial performance and sutainability of Moroccan microfinance institutions (MFIs) in terms of governance indicators, staff productivity variables, and loans portfolio quality. Using an unbalanced panel data extracted from the Mix Market database and using structural equation modeling, 10 Moroccan MFIs were analyzed for the period between 1999 and 2017. Results indicate that there is no evidence of the impact of the regulatory environment and portfolio quality on these institutions' profitability, which is represented by the return on assets (ROA) and return on equity (ROE), and sustainability, which is represented by the operational self-sufficiency (OSS) and the number of active borrowers. However, results indicate that personnel productivity has a significant positive direct impact on both profitability and sustainability. This study provides guidance to policy makers in terms of enhancing the performance of personnel productivity of these institutions in the Moroccan context.

This study examines the impact of rule of law and government size under the dimensions of economic freedom to the social and financial efficiency of microfinance institutions (MFIs) from Thailand, Philippines, Malaysia, Indonesia, and Cambodia 2011 to 2018. The Data Envelopment Analysis (DEA) approach has been applied to identify the efficiency level of MFIs. At the same time, the Pooled Ordinary Least Square (PoOLS) and Generalized Least Square (GeLS) methods comprising the Fixed Effect (FEMod) and Random Effect (REMod) models are used to examine the impact of dimensions of economic freedom and potential determinants on the efficiency level of MFIs. Overall, the results revealed that the technical efficiencies for both social and financial efficiency are contaminated by managerial inefficiency, which is measured by pure technical efficiency. This indicates, although the MFIs had been operating on a relatively optimal scale, they were facing the inefficiency from the managerial side. Besides, the results from the panel regression analysis have implied that both property rights and government integrity under the measurement of rule of law positively influence the MFIs' financial efficiency. Meanwhile, the impact of government size shows both tax burden and government spending are significantly positive to the social efficiency of MFIs. As the policy implication, the information provides suggestion to the government on how its role can help in improving the efficiency level of MFIs and implements some useful initiatives to help MFIs to sustain in the long term. In addition to that policymakers can identify the relevant inputs of MFIs and thus revise the policy accordingly and design new policies and regulations based on different economic freedom dimensions. The results of the present study provide a reference to guide them in decision making on their investments. For academicians or researchers, they can obtain more information regarding the efficiency of MFIs that is valuable for further research or study. [ABSTRACT FROM AUTHOR]

The study explores the borrowers' credit risk factors, perception towards repayment interventions, and the problems of moral hazard affecting delinquency in uncollateralized loans issued by the Microfinance Institutions (MFI). It employs the partial least square structural equation modelling to develop a buyer-side perception-behavioural model for borrowers' loan delinquency behaviour. The findings indicate that the borrowers' perception towards MFI loan repayment interventions and group homogeneity significantly reduces the moral hazard problem leading to a lower delinquency rate. The household socio-economics characteristics also seem to have a significant association with the borrowers' loan delinquency. Identification of borrowers' credit risk factors and the interlinkage between borrower's perception towards repayment interventions, group homogeneity, and moral hazard in loan delinquency can provide critical insights that MFIs can consider while disbursing uncollateralized loans to control the default risk. [ABSTRACT FROM AUTHOR]

The microfinance sector has played a vital role in economic development and financial inclusion in India. However, with the COVID-19 pandemic affecting economic activities, microfinance institutions (MFIs) were impacted adversely. The Government of India introduced a moratorium to borrowers for loan repayments. This study examines the impact of the government's initiative of easing borrowers' financial burdens and the number of active COVID-19 cases on the operational efficiency of MFIs in Indian states. Additionally, the analysis explores the macro-economic determinants of MFI performance. The study incorporates the random effects robust regression model. The findings suggest that interest rate and inflation impact every MFI performance criterion while national income only affects the loan penetration efficiency of MFIs. It is also found that the moratorium significantly helped borrowers, whereas, it had adverse effects on the loan penetration by MFIs. Lastly, it is shown that MFIs remained resilient to COVID-19 cases, except in the case of reduced number of borrowers. [ABSTRACT FROM AUTHOR]

The rapid expansion of microfinance has been uneven across emerging market countries. Our study examines whether the regulatory and legal environment for small and medium enterprises (SMEs) associated with microfinance institution (MFI) lending in informal markets may be part of the explanation. Our study of 51 emerging market countries for the period 2007-2015 used two measures of MFI lending: 1) the market penetration index (PI) which reflects MFI outreach and 2) gross loan portfolio per capita (GLP) which gauges the volume of MFI lending. Based on our search, this is the first study to incorporate both measures of MFI lending. We find that excessive regulation and weak legal institutions are associated with less MFI lending both in terms of outreach (PI) and loan volume (GLP). Hence, the international differences in MFI expansion may be partially attributable to business-unfriendly regulations and legal structures. [ABSTRACT FROM AUTHOR]

Microfinance and mobile money have recently become very popular globally. There is hardly a country in the world that is not using the benefits of microfinance and mobile banking. Digitization increasingly intensify their use. However, the different degree of development of economies and digitalization level determinate the use of these categories in the various regions and in the countries with different income levels. Hence, the purpose of this paper is to explore whether there are statistically significant differences in the level of microfinance and mobile money between regions, but also between grouped countries based on different income levels. The research is based on the various available data and indicators regarding microfinance and mobile money that are used as observation in the one-way ANOVA analysis. The analysis indicates significant differences in the level of microfinance and mobile money according to the income levels of the countries. Namely, the countries with higher level of income have higher level of microfinance and mobile money. Also, no evidence was found of differences in microfinance levels between the regions proposed for testing as groups. [ABSTRACT FROM AUTHOR]

To contain the spread of the Covid‐19 pandemic, the mandated social distancing and restricted market activities have adversely affected the employment and earnings of the poor who are considered the targeted beneficiaries of the Microfinance Institutions (MFIs). The MFI operation and more specifically fresh lending are under serious threat as the mode of operations primarily involve physical interaction while distributing credits at the clients' doorsteps, conducting periodic group meetings and carrying out regular collections. This short article attempts to analyze the various challenges that MFIs may encounter in their current and future operations due to the ongoing pandemic. It discusses how the government initiated coping mechanisms may help MFIs overcome or minimize the pandemic challenges. At the same time, MFIs' efforts towards continued services are expected to create a win‐win situation. [ABSTRACT FROM AUTHOR]

Research background: Microfinance institutions (MFIs) play an important role in alleviating poverty. Thus, MFIs should be efficient in order to ensure that their objectives on social welfare and financial performance can be achieved by identifying the potential determinants, specifically on social globalisation. Purpose of the article: This paper examines the impacts of the social globalisation dimensions of interpersonal, informational, and cultural globalisations on the financial and social efficiency of MFIs. Methods: The data period covered the years 2011-2018; the data set consists of 176 MFIs from six Asian countries. The Data Envelopment Analysis (DEA) approach was employed to examine the MFIs' efficiency levels. Generalised Least Square (GLS) regressions were used to analyse the impacts of social globalisation and other determinants towards the efficiency of MFIs. Findings and value added: Interpersonal globalisation had a significantly negative correlation with social efficiency, suggesting that increasing the number of foreigners in management intrudes on local managers' decisions. Informational globalisation had a significantly positive correlation with financial and social efficiency, which signifies that more information produces monopolistic profits in this industry. Finally, cultural globalisation had a positive correlation with social efficiency, demonstrating that a global trading culture improves the abilities and technological skills for labour development and enhances MFIs' social efficiency. In general, the Cobb Douglas Production theory explained the understanding of the impacts social globalisation has on MFI efficiency. Furthermore, the findings from this study could provide important scientific, practical gap and contribute new insights and implications to various parties. Firstly, governments or policymakers can establish effective national policies and strategies. Secondly, this study could support investors in monitoring and understanding the performance of MFIs. Finally, the research could fill scholarly gaps and uncover more potential factors that influence the efficiency of MFIs. [ABSTRACT FROM AUTHOR]

We examine the impact of religious beliefs on loan repayments in 770 microfinance institutions (MFIs) across 65 countries over the period 2006–2018. We find robust evidence of a negative relationship between religiosity and loan losses in MFIs. We also find that the relationship between religiosity and loan losses is stronger for MFIs in Protestant-dominated countries than in Catholic-dominated countries. Moreover, religiosity improves the operational self-sufficiency of MFIs through a reduction in loan losses. We find that religiosity does not improve the loan repayment behaviour of women borrowers, but it reduces the loan size per borrower. Overall, our evidence suggests that although religiosity reduces loan losses through religiosity-induced lender-risk aversion, it does not improve the loan repayment behaviour of borrowers. We also use several approaches to evaluate our results to the effects of endogeneity. [ABSTRACT FROM AUTHOR]

We test the effect of institutional quality on capital structure in the microfinance setting. In doing this, we rely on data from 532 microfinance institutions (MFIs) located in 73 countries dotted across the six microfinance regions in the world. We observe that institutional quality exhibits a robust negative and statistically significant relationship with capital structure in both the short and long run, implying that MFIs in countries with a better institutional environment are less likely to utilize more debt. Our moderation analysis furnishes us with evidence that the presence of women on the board of an MFI significantly moderates the relationship between institutional quality and its capital structure. We show that in the presence of more female representation on the boards of MFIs, the tendency of MFIs using less debt is higher. [ABSTRACT FROM AUTHOR]

For microfinance institutions (MFIs) with double bottom line objectives and trade‐offs, the optimal loan size can be determined by using a combination of Markovian Chains with transition probabilities and expected cash flows. Progressive lending may be safe over a range of loan sizes, beyond which a rational borrower would indulge in a strategic default. This range of safe loan sizes may depend on borrower characteristics (risk‐taking, self‐confidence, productivity, interest rates, subsistence needs) and the Microfinance Institution's strategy (financial inclusion objective, progressive lending). MFIs can improve the objective functions by better communication and encouragement of borrowers to increase their confidence in each stage and reassuring them that entrepreneurial failure will not mean being denied a second chance. [ABSTRACT FROM AUTHOR]

Microcredit institutions are facing commercialization transformation, and how they can balance their social mission with operational performance is a focus of research in both industry and academia. This study, based on grounded theory and the iterative canvas theory framework of business models, conducts a multi-case study of three local commercial banks in Taizhou, exploring the inherent logic of how these banks manage to balance 'dual objectives'. The research shows that the business model innovation of microcredit institutions includes desirability, feasibility and viability. The analysis of desirability indicates that focusing on small businesses is key to successfully integrating the social mission; feasibility analysis reveals that accurate application of soft information and resource integration is essential for gaining competitive advantage; and analysis of viability shows that enhanced risk management and scaling up operations are crucial for achieving operational performance. Through data analysis of the case banks from 2012 to 2021, this study provides evidence that microcredit institutions can achieve dual objectives and offers insights into how they do so. This provides valuable lessons for enhancing financial inclusiveness and expanding the coverage of commercial banks. • The business model innovation of microcredit institutions includes desirability, feasibility and viability. • Focusing on small enterprises is key to the successful integration of social mission in the case bank. • Strengthening risk control and scaling up operations are crucial for the case bank's business performance. • Business model innovation is key for local commercial banks to balance social mission and commercial performance. • This case provides valuable insights for commercial banks to enhance financial inclusiveness and coverage. [ABSTRACT FROM AUTHOR]

This paper presents the results of the study on the effect of credit collection policy on portfolio at risk of microfinance institutions in Tanzania. The study used cross-sectional survey data of microfinance institutions in three regions of Dar es salaam, Morogoro and Dodoma. Random sampling was employed to obtain a sample of 219 respondents in all three regions. Multiple linear regression analysis was used to determine the effect of credit collection policy on portfolio at risk of microfinance institutions. Results show that, there is a positive relationship between interest rates charged and portfolio at risk of microfinance institutions. On the other hand, the variable for grace period on loans and loan sizes to borrowers had a negative relationship with portfolio at risk of microfinance institutions. The study recommends that, microfinance institutions in Tanzania need to reconsider the interest rates charged to their clients to enhance sustainability of their loan portfolios. Moreover, microfinance institutions need to enhance provision of grace period to their customers. Also, establish efficient loan product sizes which suffice diverse client’s needs. That would encourage and broaden client repayments, contribute to financial performance and reduced risk of portfolio of microfinance institutions.

This paper contributes to the literature on management and corporate governance in microfinance institutions. The microfinance market is one of the rare markets with a large representation of women in management and governance roles. The objective of our paper is to reveal the effects of women’s presence on the financial and social performance of microfinance institutions. To achieve this, we develop a model that allows for capturing the influence of gender diversity in the microfinance field whilst controlling for risks. We focus on the role of women as loan officers, on boards of directors, and involved in managing the creation of microfinance institutions. Our model utilises two sets of panel data regressions, one for social performance and one for financial performance, and is tested on data from 193 microfinance institutions across Eastern Europe and Central Asia for the financial years 2010 through 2014. The results of our investigation indicate that the activity of female members of management, CEOs, and boards of directors could increase performance indicators for riskier microfinance institutions. This is illustrated particularly in the case of projects with greater stakes in portfolios that are more than 90 days in arrears. We also provide evidence that women on boards tend more towards promoting a strategy utilising large quantities of small loans with greater interest. The social performance of microfinance institutions is crucially determined by the microfinance institutions’ size. For the largest microfinance institutions, questions of social performance lie in the field of boards of directors, while smaller institutions’ social performance is mostly driven by CEOs and staff, with significant evidence of a positive female influence on performance indicators. The novelty of this study is demonstrated the scope of our research. We combine several contemporary issues of peculiar cross-disciplinary interest, and offer succinct and compelling results which will be of immediate applicability in a wide range of academic and professional fields. Our results will be of interest to scholars of gender, social studies, psychology, business, corporate structure, and more. More specifically, we add to the evolving sub-field of study of microfinance institutions, which has the potential to develop rapidly in the near future. This paper represents a cross-section of commercial and business research across a wide territory, with a large sample size, and provides compelling conclusions, which add to these fields of study by both validating existing research, and highlighting new areas for future analysis.

This research is aimed at revealing accountability practices at the oldest Communal Based Microfinance Institution in Indonesia, Lumbung Pitih Nagari. Lumbung Pitih Nagari is a traditional microfinance institution owned by the nagari community (traditional village) and transformed into a formal financial institution (rural credit banks and cooperatives). This research was carried out during 2017-2018 on several research sites spread across three districts / cities in Indonesia's West Sumatra province. Data collection is done by in-depth interviews, observation and documentation. Research informants were determined in advance for several key informants and the rest followed the snowball sampling pattern. Data analysis was carried out following 12 stages of sequential development methods introduced by Spradley in Realist ethnographic research. This study found a change in direction and form of accountability from the social base to rule base on the Lumbung pitih nagari which turned into rural credit bank. While the Lumbung pitih nagari turned into cooperatives, there was also a change in direction and form of accountability, although it was not significant, as happened in the Lumbung Pitih Nagari which turned into a rural credit bank. In the final section, this study found changes in the Lumbung Pitih Nagari to become a rural credit bank or cooperatives make the Lumbung Pitih Nagari uprooted from its roots as a communal nagari-based microfinance institution that should contribute to the development of economic, social, religious and cultural aspects of the Nagari community