Handbook Chapter
In Handbook on the Economics of Foreign Aid
Edited by B. Mak Arvin and Byron Lew
- Published in print:
- 30 Oct 2015
Rients Galema, Robert Lensink and Roy Mersland
Handbook Chapter
In Research Handbook on International Banking and Governance
Edited by James R. Barth, Chen Lin and Clas Wihlborg
- Published in print:
- 29 Jun 2012
Niels Hermes, Robert Lensink and Victor Murinde
Handbook Chapter
In Handbook of International Banking
Edited by Andrew W. Mullineux and Victor Murinde
- Published in print:
- 26 Feb 2003
Financial development and the efficiency of microfinance institutions
Global Perspectives
Niels Hermes, Robert Lensink and Aljar Meesters
Microfinance is an instrument for achieving responsible finance as its aim is to contribute to the financial inclusion of poor households and small businesses. We investigate whether the country-level financial environment in which microfinance institutions (MFIs) work affects their operations. In particular, we argue that the efficiency of MFIs and their capacity to contribute to increasing financial inclusion of poor households and small businesses is determined by the extent to which financial markets of countries are developed. On the one hand, well-developed financial markets provide an environment in which MFIs are able to flourish and increase their efficiency, which increases their capacity to contribute to financial inclusion. On the other hand, well-developed financial markets may also substitute for MFIs and/or may lead to MFI clients taking up multiple loans, reducing efficiency. We find strong evidence that MFI efficiency is positively associated with the level of financial market development.
Handbook Chapter
In Research Handbook on Small Business Social Responsibility
Edited by Laura J. Spence, Jedrzej G. Frynas, Judy N. Muthuri and Jyoti Navare
- Published in print:
- 26 Jan 2018