Effects of Financial Innovations on Profitability for Deposit Taking Microfinancing Institutions in Kenya

2018 ◽  
Vol 9 (6) ◽  
pp. 529-536
Author(s):  
Martin Khoya Odipo ◽  
Keyword(s):  
Financial Institutions ◽  
Positive Relationship ◽  
Financial Institution ◽  
Secondary Data ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Financial Innovations ◽  
Strong Positive Relationship

Recent studies have documented that innovations improve profitability of firms. This article documents that deposit taking micro financial institutions that have adopted financial innovations have increased their profitability. The study covered five years between 2009-2013. Both primary and secondary data were used in the study. Primary data was obtained through administration of drop and pick questionnaires to selected employees of the institutions. Secondary data was obtained from financial statements and management reports of these deposit taking microfinance institutions. Data was analyzed using descriptive statistics, return on asset and multi-liner regression model to determine the effect of each financial innovation applied on profitability on the micro-financial institution. The results showed that most deposit taking microfinance institutions adopted these financial innovations in their current operations. There was strong positive relationship between individual innovations and profitability. In line with profitability ROA also showed improvement each year after the adoption of these financial innovations.

scholarly journals Loan Recovery Procedures in Tanzania: A Case of Selected Microfinance Institutions in Dar-Es-Salaam, Tanzania

2021 ◽  
Vol 9 (05) ◽  
pp. 2172-2184
Author(s):  
Richard Sikira
Keyword(s):  
Qualitative Data ◽  
Secondary Data ◽  
Dar Es Salaam ◽  
Descriptive Statistics ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Case Study Design ◽  
Debt Collection ◽  
Formal Procedures

The study aimed to determine the procedures employed by MFIs, specifically in loan recovery in Tanzania. Loan recovery has been a difficult task for many financial institutions but becomes more challenging to microfinance institutions due to the nature and processes they employ. The study examined the loan recovery procedures at NFBS, SMF and AML found in Dar-Es-Salaam, Tanzania. The researcher employed a mixed- case study design, which involved 50 credit officer respondents obtained under the purposive sampling. The study used semi-structured questionnaires to gather primary data and also secondary data from documents available at NFBS, SMF and AML. Data were analysed using simple descriptive statistics with percentages and frequencies for quantitative data, while thematic analysis was used for qualitative data. The study found that NFBS, SMF and AML used loan recovery procedures such as direct contact, friendly reminder, and issuance of final demand notice. Another procedure is to inform the local government on property selling and using a debt collection agency. The study recommends for MFIs to establish and prefer formal procedures that can be used for loan recovery because the use of informal procedures creates room for conflict and leads to ineffectiveness of recovering loans.

scholarly journals Analysis of Credit Risk, Efficiency, Liquidity, and Profitability of Selected Non-Bank Financial Institution: An Empirical Study

2017 ◽  
Vol 2 (2) ◽  
pp. 16
Author(s):  
Sabrina Akhter ◽  
Jewel Kumar Roy
Keyword(s):  
Credit Risk ◽  
Financial Institutions ◽  
Financial Institution ◽  
Financial System ◽  
Secondary Data ◽  
Financial Statements ◽  
Significance Level ◽  
Negative Effect ◽  
Influence Variable ◽  
And Performance

<p>Financial Institutes are the lifeblood of the financial system of any country that plays an intermediary between the surplus and deficit unit of any society. So the efficiency and performance of a financial institution is the indication of sound financial system. In this study the authors are trying to analyze the factors such as credit risk, efficiency, liquidity, and profitability; which affect the performance of non-bank financial institutions. The methods used are descriptive with secondary data from financial statements of Non-Bank Financial Institutions from 2010 to 2015. Linear regressions, ANOVA, hypothesis testing while using F-test to examine the effect of variables simultaneously with a significance level of 5 %. Based on the results it is concluded that partial NPM and ROA have positive and significant effects on LDR. NPL has a negative effect of loan to deposit ratio. The amount of the contribution or influence variable of NIM, OPM, NPM, ROA, ROE and NPL to the dependent variable of LDR is 87.45% while the remaining 12.55% thought to be influenced by other variables not examined in this study.</p>

scholarly journals The Influence of Geographical Coverage on the Microfinance Sustainability and Outreach in Northern Ghana

2010 ◽  
Vol 12 (2) ◽  
pp. 82
Author(s):  
Issahaku Salifu
Keyword(s):  
Positive Relationship ◽  
Descriptive Statistics ◽  
Northern Ghana ◽  
Primary Data ◽  
Sampling Techniques ◽  
Ethical Standards ◽  
Microfinance Institutions ◽  
View Point ◽  
Microfinance Institution ◽  
Structured Questionnaire

The study examined for statistically significant relationship between geographical coverage of microfinance institutions and sustainability and outreach from the view point of managers and operational staff in northern Ghana. Structured questionnaire was used in collecting data. The questionnaire was administered to a sample of 181 managers and operational staff of 18 microfinance institutions. The study used primary data. In selecting the respondents for this research paper, purposive and convenient sampling techniques were employed. The questionnaire was personally administered by the researcher. The study was conducted to ethical standards and respondents were made aware that participating in the study was voluntary. Data collected was analyzed using Spearman&rsquo;s correlation and descriptive statistics. The research uncovered a statistically significant positive relationship between geographical coverage and sustainability and outreach in northern Ghana using Spearman&rsquo;s correlation. In addition, the use of descriptive statistics showed that geographical coverage of microfinance institution influenced its sustainability and outreach with particular reference to the number of clients served, location of offices or branches, and scope of coverage. This study adds to the literature on geographical coverage and microfinance sustainability and outreach in the context of northern Ghana. This study is limited to only northern Ghana and not Ghana in its entirety.

scholarly journals Corporate Social Responsibility (CSR) practices of financial institution in Bangladesh: the case of United Commercial Bank

2020 ◽  
Vol 2 (2) ◽  
pp. 69-82
Author(s):  
Sumaiya Afrin ◽  
◽  
Farhana Sehreen ◽  
Mohammad Rashed Hasan Polas ◽  
Rubyat Sharin ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Commercial Bank ◽  
Financial Institutions ◽  
Financial Institution ◽  
Secondary Data ◽  
Primary Data ◽  
Exploratory Research ◽  
Csr Strategies ◽  
Corporate Social

Purpose: The main purpose of the research is to understand the CSR practices of financial institutions in Bangladesh better. Research methodology: Corporate Social Responsibility (CSR) is concerned with businesses’ interactions with society as a whole. Such CSR operations cover an organisation’s fiscal, legal, ethical, and philanthropic obligations. United Commercial Bank Limited (UCB) has been chosen as the study’s subject. This study is a qualitative research project that used an exploratory research design. For data collection, both main and secondary data sources were used. The in-depth interview approach with an open-ended questionnaire was used to gather primary data on CSR practices from 70 UCB employees. Results: According to the findings of the study, UCB is deeply performing its fiscal, legal, ethical, and philanthropic responsibilities, but it has not expanded its philanthropic activities on a voluntary basis. Furthermore, the representation of UCB employees in CSR management is inadequate, with the exception of top-level executives. Limitations: Any methodological issues were addressed, such as sampling challenges because financial institutions do not encourage third parties to obtain their secrets because competition occurs everywhere. Contribution: This study makes several suggestions, such as improved and more systematic communication of CSR strategies to employees, increased investments in CSR programs, and specially targeted CSR preparation, which could assist UCB in encouraging a more successful application of its CSR strategies.

scholarly journals EFFECT OF INFORMATION SHARING FUNCTION ON FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES

2017 ◽  
Vol 1 (5) ◽  
pp. 49 ◽  
Author(s):  
Jackson Mnago Ndungo ◽  
Dr. Olweny Tobias ◽  
Dr. Memba Florence
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Financial Institutions ◽  
Positive Relationship ◽  
Secondary Data ◽  
Target Population ◽  
Primary Data ◽  
Top Managers ◽  
Sharing Function ◽  
Business Entities

Purpose: The objective of the study was to establish effect of credit information sharing on financial performance of SACCOs in Kenya. Studies have indicated that countries are establishing credit registries to reduce defaults, caused by information asymmetry, which have been a crisis for most financial institutions. Various financial institutions including SACCOs which have the business of lending are currently subjecting their customers in credit reference bureaus. Literature indicates that credit defaults have continued to pose financial crisis for financial institutions. Many studies done indicate that credit default is caused by lack or inadequate accurate credit information. In Kenya, through the Banking Act of 2009 saw the establishment of the first credit reference bureau in 2010 where individuals and business entities were to be subjected to CRBs. This study sought to establish the effect of information sharing on financial performance of SACCOs in Kenya. The study adopted a descriptive research design which was both quantitative and qualitative. The target population was 181 and a sample of 135 (74.5%) licensed deposit taking SACCOs as at 31st December 2014 was used. The choice of the licensed deposit taking SACCOs in Kenya was very objective since they offer employment opportunities for our youth. In most cases SACCOs deal with a larger group of clients from the informal sector as opposed to other financial institutions like banks and so it was possible to obtain information that is representative of Kenya. Secondary data was collected from published financial records and CRBs while primary data was collected through questionnaires which were administered to the top managers of the SACCOs. The study established that credit information sharing has a significant and positive relationship with financial performance of the sampled SACCOs. The study highlights effect of credit information sharing with possible recommendations for improvement on financial performance.Findings: The study concluded that there was a significant and positive relationship between information sharing function and financial performance thus the existence of credit reference bureaus was suitable for improving financial performance of SACCOs. Thus Credit reference bureaus have led to share of negative credit reports; Credit reference bureaus have led to improved defaults rate of borrowers, improved lenders response rate on credit lending and have reduced existence of privacy on borrowers’ credit history.Recommendation: Credit information sharing should be addressed through networking of all credit information amongst lenders so that lenders can have readily available credit information, both positive and negative, on the borrowers which would be shared across all lenders.

Pengaruh Jumlah Dewan Komisaris, Leverage, Profitabilitas, Intensitas Modal, Cash Flow, Dan Ukuran Perusahaan Terhadap Konservatisme (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2012-2017)

2019 ◽  
Vol 8 (1) ◽  
pp. 17-24
Author(s):  
Siti Suharni ◽  
Arini Wildaniyati ◽  
Dea Andreana
Keyword(s):  
Cash Flow ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Intensity ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Company Size ◽  
Manufacturing Companies ◽  
Financial Reports

This study is aimed at examining the effects of the Number of Board of Commissioners, Leverage, Profitability, Capital Intensity, Cash Flow, and Company Size toward Conservatism in the manufacturing companies listed on the Indonesian Stock Exchange (IDX). The population used in this study is the yearly financial statements on firm of manufacturing listed at BEI period 2012-2017, using purposive sampling method. The type of data used is secondary data obtained from yerly financial reports published and downloaded through the official BEI website. Data analyzed with Descriptive statistics, test of classic assumption and exmination of hypothesis with multiple linier regression method. The result of hypothesis research shows variable Profitability and Cash Flow have a significant effect on the ability of Conservatism, while the Number of Board of Commissioners, Leverage, Capital Intensity, and Company Size has no effect on the ability of Conservatism.

APPLICATION OF AKAD IJARAH ISLAMIC LAW IN THE AL-QUR'AN

ISLAMIKA ◽  
2020 ◽  
Vol 14 (1) ◽  
pp. 1-11
Author(s):  
Ade Jamarudin ◽  
Ofa Ch Pudin
Keyword(s):  
Financial Institutions ◽  
Islamic Law ◽  
Financial Institution ◽  
Field Research ◽  
Secondary Data ◽  
Research Field ◽  
Islamic Banking ◽  
Library Research ◽  
Human Labor ◽  
Leasing Company

Ijarah is a contract on the transfer of goods or services with rewards instead. Ijarah based transactions with the displacement benefit (rights to), not transfer of ownership (property rights), there ijara financing translates as buying and selling services (wages hired), that take advantage of human power, there is also a translate lease, which take advantage of goods. Application ijarah growing financial institutions in the current Shari'ah is happening on the leasing company (financial institution based on Islamic teachings, as well as Islamic banking is one of the products in Islamic finance. Application ijarah emerging financial institutions shari'ah 'ah at the moment that is happening on the leasing company (financial institution based on Islamic teachings, as well as Islamic banking is one of the Islamic financing products). This research is a library research (library research) and field research (field research), and is descriptive, analytic and comparative. Data sources used in this study are sourced from primary and secondary data. Ijarah transactions are based on the transfer of benefits (use rights), not the transfer of ownership (ownership rights), some translate ijarah financing as the sale and purchase of services (wage wages), i.e., taking the benefits of human labor

scholarly journals Ada Apa dengan Dewan Pengawas Syariah di Koperasi Simpan Pinjam dan Pembiayaan Syariah?

2019 ◽  
Vol 3 (2) ◽  
pp. 155
Author(s):  
Choirul Absor ◽  
Kharis Fadlullah Hana ◽  
Fatikha Rizqya Nur
Keyword(s):  
Financial Institutions ◽  
Supervisory Board ◽  
Secondary Data ◽  
Primary Data ◽  
Office Visits ◽  
Moral Principles ◽  
Savings And Loan ◽  
Data Source ◽  
Feasibility Test

<p><em>This study aims to determine the role of the Sharia Supervisory Board in supervising Sharia Savings and Loan Cooperatives (KSPPS) so that operations do not come out of sharia provisions. Sharia Supervisory Board includes legal assistants who have the duty to ensure and conduct supervision so that Sharia Financial Institutions are in sharia provisions. Savings and Loan Cooperatives and Sharia Financing are financial institutions that are socially based and in their activities are based on moral principles by considering haram and lawfulness of a business that is run in accordance with Islamic regulations. The method used to conduct this research is qualitative. The data source uses secondary data and primary data by collecting data in the form of interviews and documents. Based on the results of observations on KSPPS Berkah Abadi Gemilang that Supervision conducted by DPS there is still an obstacle that causes less optimal supervision, namely members of sharia supervisors who do not understand muamalah fiqh, mastery of economics and DPS rarely make office visits. In addition, one member of the DPS also does not yet have a certificate of proof of passing the exam from DSN-MUI or other standard certificates, in this case at least the results of the certificate provide a guarantee that the Sharia Supervisory Board has passed the feasibility test to become the Sharia Supervisory Board. KSPPS Berkah Abadi Gemilang in practice also still has errors, the Ba'I Bi'saman Ajil contract which is supposed to be a sale and purchase agreement but made as a financing and error in determining the margin based on the presentation of the money lent.</em></p>

scholarly journals ANALISIS PENGARUH PENGETAHUAN PERPAJAKAN, SOSIALISASI, PELAYANAN, SANKSI PERPAJAKAN, DAN TINGKAT PENDIDIKAN WAJIB PAJAK TERHADAP KESADARAN WAJIB PAJAK MEMBAYAR PBB P2

2020 ◽  
Vol 6 (1) ◽  
pp. 75-95
Author(s):  
Yunita Isna Ratri ◽  
Achmad Tjahjono
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Sampling Method ◽  
Positive Relationship ◽  
Secondary Data ◽  
Education Level ◽  
Primary Data ◽  
Partial Knowledge ◽  
Convenience Sampling

The Analysis Influence of Knowledge Taxation, Socialization, Service, Tax Sanctions and Education Level of Taxpayer Awareness Paying PBB P2. SkripsiStarta One (S1) Accounting Departement STIE Widya Wiwaha Yogyakarta 2018. The purpose of this research is to know influence of Knowledge Taxation,Socialization, Service, Tax Sanctions and Education Level of Taxpayer Awareness Paying PBB P2 with using multiple linear regression and dummy’s variable. The sample in this research includes 120 respondences who are in the District of Prambanan, village Bokoharjo, Madurejo, Sambirejo, Sumberharjo, Wukirharjo, Gayamharjo. The sampling method is convenience sampling. The collected of data to use primary data with questionnaire technique and secondary data that is data taken from DPPKAD (Dinas Pendapatan Pengelolaan Keuangan Aset Daerah). The results of the research to drawn that the partial, knowledge taxation has a positive relationship and significantly influence the awareness of paying taxpayers PBB P2, and Services have a positive relationship and significant effect on the awareness of paying taxpayers PBB P2. By mutual independentvariables affect the awareness of paying taxpayers PBB P2 as a dependent variable.

Sustainability of Microfinance Institutions in India

2018 ◽  
pp. 257-274
Author(s):  
Kabita Kumari Sahu
Keyword(s):  
Achievement Motivation ◽  
Training Programs ◽  
Secondary Data ◽  
Primary Data ◽  
Age Group ◽  
Microfinance Institutions ◽  
Economic Activities ◽  
Market Linkage ◽  
Medium Level ◽  
And Training

The objective of the chapter is to analyze the performance and constraints of selected occupation-related SHGs in India and examine the sustainability of SHGs providing microfinance on the basis of secondary data and primary data from Kendrapara district of Odisha, India. It is observed that majority of the SHG members are in young age group with low level of literacy, small and medium level of land holding, medium level of dependency ratio, forming experience, family encouragement, deferred gratification, risk willingness achievement motivation, and economic activities. The major variables that have contributed for enhancing the performance of SHGs are family encouragement, risk willingness, achievement motivation, extension participation, extension contact, and training programs. In order to enhance further motivation and build confidence, proper market linkage and training programs need to be established. Further, to ensure sustainable development of SHGs in future, federation of SHGs can be thought of by the implementing agency.

Sign in / Sign up

Export Citation Format

Share Document