Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2020.1819853
Revisiting efficiency of microfinance institutions (MFIs): an application of network data envelopment analysis
Mohammad Nourani
Nurhafiza Abdul Kader Malim
Md Aslam Mia
Sažetak
In order to achieve financial inclusion objectives of Sustainable
Development Goals (SDGs) and provide continuous financial support to the unbanked population, microfinance institutions (MFIs)
must attain efficiency in their operations. Hence, the main purpose
of this study is to examine various efficiencies of MFIs based on
their goals and operational mechanisms. By utilizing a unique production process and network data envelopment analysis (NDEA)
technique, we estimated three different types of efficiencies (operational, financial and outreach) of 90 MFIs from 2013 to 2018. It
was discovered that the overall efficiency of the MFIs was not up to
the required standard and it became even worse when the financial
and social outreach efficiencies were considered. However, operational efficiency (ability to generate intermediaries) was relatively
better and remained high among the regulated MFIs. On the contrary, the financial and social outreach efficiencies were found to be
better among the unregulated MFIs. Moreover, our results also
highlight the divergence in efficiency between regions, legal status
and regulatory environment; with projection analysis suggesting a
simultaneous reduction in input, and an increase in output of inefficient MFIs to facilitate their attainment of efficiency. Policy implications are subsequently discussed.
Ključne riječi
Operational efficiency; financial sustainability; social outreach; microfinance; MFIs; network DEA
Hrčak ID:
301221
URI
Datum izdavanja:
31.12.2021.
Posjeta: 330 *