scholarly journals Implementation of Fuzzy Tsukamoto Algorithm in Determining the Level of Financial Distress in Microfinance Institutions

2018 ◽  
pp. 9-15
Author(s):  
Khairul A ◽  
A. P. U. Siahaan ◽  
Mochammad Iswan Perangin-angin ◽  
Andre Hasudungan Lubis ◽  
Sari Nuzullina Rahmadhani ◽  
...  
Keyword(s):  
Financial Institutions ◽  
Financial Distress ◽  
Business Development ◽  
Community Empowerment ◽  
Microfinance Institutions ◽  
For Profit ◽  
Turnover Ratio ◽  
Consulting Services ◽  
The City ◽  
Existing Data

Fuzzy Tsukamoto is one method that is very flexible and tolerant of existing data. Fuzzy Tsukamoto has the advantage of being more intuitive, accepted by many, more suitable for the input received from humans rather than machines. Microfinance institutions are specialized financial institutions established to provide business development services and community empowerment, either through loans or financing in micro-scale businesses to members and the community, deposit management, and the provision of business development consulting services that are not solely for profit. The purpose of this study is to apply the fuzzy Tsukamoto method to determine the level of financial distress in microfinance institutions in the city of Medan based on the variables Liquidity Ratio, Age Firm, and Cumulative Profitability Ratio, Profitability Ratio, Financial Structure Ratio, Capital Turnover Ratio.

scholarly journals Implementation of Fuzzy Tsukamoto Algorithm in Determining the Level of Financial Distress in Microfinance Institutions

2018 ◽  
Author(s):  
Andysah Putera Utama Siahaan ◽  
Andre Hasudungan Lubis
Keyword(s):  
Financial Institutions ◽  
Financial Distress ◽  
Business Development ◽  
Community Empowerment ◽  
Microfinance Institutions ◽  
For Profit ◽  
Turnover Ratio ◽  
Consulting Services ◽  
The City ◽  
Existing Data

Fuzzy Tsukamoto is one method that is very flexible and tolerant of existing data. Fuzzy Tsukamoto has the advantage of being more intuitive, accepted by many, more suitable for the input received from humans rather than machines. Microfinance institutions are specialized financial institutions established to provide business development services and community empowerment, either through loans or financing in micro-scale businesses to members and the community, deposit management, and the provision of business development consulting services that are not solely for profit. The purpose of this study is to apply the fuzzy Tsukamoto method to determine the level of financial distress in microfinance institutions in the city of Medan based on the variables Liquidity Ratio, Age Firm, and Cumulative Profitability Ratio, Profitability Ratio, Financial Structure Ratio, Capital Turnover Ratio.

scholarly journals MODEL OF BUSINESS ACTIVITIESS OF MICROFINANCE INSTITUTIONS IN INDONESIA

2017 ◽  
Vol 2 (2) ◽  
pp. 326
Author(s):  
Etty Mulyati ◽  
Kartikasari Kartikasari ◽  
Rai Mantili ◽  
Nun Harrieti
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Financial Services ◽  
Limited Liability ◽  
Business Development ◽  
Community Empowerment ◽  
Microfinance Institutions ◽  
For Profit ◽  
Consulting Services ◽  
Purpose Of Business

Micro Finance Institutions (LKM) as non-bank financial institutions, are growing very rapidly in Indonesia. A very large number and scope of business in villages/sub-districts and sub-districts or districts can play a role in an inclusive financial program. The existence of LKM operation much help expand employment and improve the welfare and improving the economy and productivity of the people, especially low-income communities. The problem is how to model the business activities of LKM in Indonesia. This research will use normative juridical approach method, with analytical descriptive research specification. In an effort to provide financial services, which are intended for low-income communities and do not have access to bank financial institutions. LKM can bridge the problems of micro business access to capital is needed in business development. LKM has a different character with the other financial sector businesses, because it is not solely intended for profit. LKM business activities can be done in a conventional or sharia, includes loan/financing for micro enterprises for capital needs in business development, and management of deposits in an effort to bring awareness to the community's fond of saving, besides that LKM also provide consulting services for the purpose of business development community empowerment. To provide legal certainty for the LKM service user community, LKM institutions are regulated in LKM Laws, according to the law the LKM must be a legal entity of the Cooperative or Limited Liability Company Fostering, regulating, and supervising and licensing of LKM is performed by the Financial Services Authority (OJK). 

scholarly journals Social and Financial Efficiency of Microfinance Institutions in Pakistan

2015 ◽  
Vol 54 (4I-II) ◽  
pp. 389-403 ◽  
Author(s):  
Zahoor Khan ◽  
Jamalludin Sulaiman
Keyword(s):  
Financial Institutions ◽  
Social Role ◽  
Policy Implications ◽  
Financial Ratios ◽  
Microfinance Institutions ◽  
Social Efficiency ◽  
Community Members ◽  
Bottom Line ◽  
Financial Efficiency ◽  
For Profit

Financial efficiency and profitability of „for profit‟ institutions have been traditionally measured with the help of financial ratios [Hassan and Sanchez (2009)]. However, financial ratios are inappropriate to investigate the sources of inefficiency, estimate financial or social efficiency with multiple inputs and outputs, and to decompose the sources of efficiency or inefficiency into technical, technological and scale efficiencies or inefficiencies respectively [Hassan and Sanchez (2009)]. Microfinance Institutions (MFIs) are special institutions, which simultaneously consider their social role to uplift the marginalised community members along with their commercial objective to secure self-sustainability. In standard literature this phenomenon is coined MFIs as being „double bottom line” institutions. [Gutierrez-Nieto, Serrano-Cinca, and Mar Molinero (2007); Gutiérrez-Nieto, Serrano-Cinca, and Molinero (2007)]. This simultaneity differentiates MFIs from conventional financial institutions. The achievement of socioeconomic efficiency is indispensable for MFIs to operate independently and on a wider scale. Thus investigation of socioeconomic efficiency of MFIs is important for monitoring and optimal policy implications.

scholarly journals The relationship between the performance and legal form of microfinance institutions

2017 ◽  
Vol 28 (75) ◽  
pp. 377-389
Author(s):  
Ruan Rodrigo Araújo da Costa
Keyword(s):  
Financial Institutions ◽  
Social Impact ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Legal Form ◽  
For Profit ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
Legal Forms ◽  
The Relationship

ABSTRACT This paper investigates the relationship between the legal forms adopted by microfinance institutions (MFIs) and their performance within three scopes: financial performance, social performance, and efficiency in resource allocation. The MFIs studied are classified into four groups: banks, non-governmental organizations, cooperatives, and a fourth group formed of for-profit institutions not characterized as banks, made up of non-bank financial institutions (NBFIs) and rural banks. The data used are annual and cover the six years from 2007 to 2012. The quantitative regression model with panel data was used together with dummy variables to compare between the four groups of legal forms, except for the group made up of NBFIs and rural banks, which was not represented by any dummy variable. 304 MFIs from 59 countries made up the sample. In the study it was observed that larger MFIs have higher profits, higher returns, and higher operational self-sufficiency rates than smaller MFIs, indicating that MFI growth could enable consolidation in the microfinance market. The results also indicate that for smaller MFIs the way to consolidate and improve the indicators could be through assimilating or merging with other MFIs. It was also noted that non-bank financial institutions and rural banks are able to serve more customers and that cooperatives provide smaller loans, causing a bigger social impact, and that they obtain higher returns and profits. The results indicate that these legal forms may be the most appropriate for the microfinance market.

Enhancing food security with Islamic microfinance: insights from some recent experiments

2015 ◽  
Vol 75 (2) ◽  
pp. 142-168 ◽  
Author(s):  
Mohammed Obaidullah
Keyword(s):  
Food Security ◽  
Capacity Building ◽  
Financial Support ◽  
Business Development ◽  
Rural Poor ◽  
Microfinance Institutions ◽  
Agricultural Finance ◽  
Content Type ◽  
For Profit ◽  
Islamic Microfinance

Purpose – Islamic microfinance institutions (IsMFIs) have used diverse models and tools, as they seek to provide financial and non-financial support to the farming communities. A majortity of IsMFIs focus on provision of micro-credit to farmers alone as a means to enhance food security, following an approach similar to that of the conventional microfinance institutions. Others adopt a “finance-plus” approach and provide support in a multitude of areas other than finance, such as, technology, production, marketing, business development, capacity building, and thus, ultimately steering the project to success. The purpose of this paper is to examine the models and tools of Islamic agricultural finance for the rural poor that display major variations and draw lessons from a policy perspective. Design/methodology/approach – The study undertakes a comprehensive review of the principles, modes and models of Islamic agricultural finance targeted at small-holder farmers. It uses a case study method to review several winning initiatives by IsMFIs across the globe. It highlights the various risks and challenges confronting the projects and how the same are sought to be mitigated. Findings – Islamic agricultural finance for the rural poor involves a range of modes, mechanisms and institutional structures. Credit-based and sharing-based modes work well under specific conditions and there is no one-size-fits-all solution for financing the rural poor. Case studies of successful initiatives reveal that composite models involving the integration of philanthropy-based, not-for-profit as well as for-profit components may provide ideal solutions. Additional factors critical for success include provision of safety nets, involvement of community, non-financial support in a multitude of areas other than finance, such as, technology, procurement, production, marketing, business development and institutional capacity building. Originality/value – The paper addresses a fundamental issue in financing the poor farmers in Muslim societies – whether to opt for a credit-based approach that would ensure greater outreach or to go for a holistic intervention involving financing of the entire value chain. The findings are based on personal interaction of the author with professionals directly involved in the projects.

Hospitals: N.Y. Appellate Court Denies Move to Privatize Public Hospital

1999 ◽  
Vol 27 (2) ◽  
pp. 202-203
Author(s):  
Robert Chatham
Keyword(s):  
New York ◽  
New York City ◽  
York City ◽  
Public Health System ◽  
Municipal Hospital ◽  
The Public ◽  
Public Benefit ◽  
For Profit ◽  
Benefit Corporation ◽  
The City

The Court of Appeals of New York held, in Council of the City of New York u. Giuliani, slip op. 02634, 1999 WL 179257 (N.Y. Mar. 30, 1999), that New York City may not privatize a public city hospital without state statutory authorization. The court found invalid a sublease of a municipal hospital operated by a public benefit corporation to a private, for-profit entity. The court reasoned that the controlling statute prescribed the operation of a municipal hospital as a government function that must be fulfilled by the public benefit corporation as long as it exists, and nothing short of legislative action could put an end to the corporation's existence.In 1969, the New York State legislature enacted the Health and Hospitals Corporation Act (HHCA), establishing the New York City Health and Hospitals Corporation (HHC) as an attempt to improve the New York City public health system. Thirty years later, on a renewed perception that the public health system was once again lacking, the city administration approved a sublease of Coney Island Hospital from HHC to PHS New York, Inc. (PHS), a private, for-profit entity.

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.

The Role of Mobile Money in Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 2 ◽  
pp. 1-24 ◽  
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and the financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have: bank accounts, savings in financial institutions, access to credit, loan and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

What motivates Chinese physicians to provide online counseling services in Internet hospitals: online reputation or offline reputation? (Preprint)

2020 ◽  
Author(s):  
Ronghua Xu ◽  
Tingting Zhang ◽  
Qingpeng Zhang
Keyword(s):  
Regression Models ◽  
Counseling Services ◽  
Online Counseling ◽  
Consulting Services ◽  
Online Consultation ◽  
Number Of Patients ◽  
Professional Titles ◽  
Online Reputation ◽  
Chinese Physicians ◽  
The City

BACKGROUND Internet hospitals, or e-hospitals, as one kind of e-health platforms in China, provided novel channels through which physicians present their medical or health-care knowledge to patients and provide online counseling services. The sustainable development of Internet hospitals and e-health platforms relied on the participation of both the patients and the physicians, especially on the provision of health consultation services by the physicians. OBJECTIVE The objective of our study was to explore the factors motivating Chinese physicians to provide online health counseling services from the perspectives of their online reputation and offline reputation. METHODS We collected the data of 141,030 physicians from 6,173 offline hospitals and 350 cities on WeDoctor, an Internet hospital platform authorized by the China Health and Family Planning Committee. We selected the physicians’ online consultation volume, the total amount of counseling conversations from all channels of the platform, as the investigated dependent variable, reflecting the actual online counseling behaviors of the physicians in the platform. Based on the reputation theories and prior study, we incorporated patients’ feedback as the physicians’ online reputation (i.e. patients’ comments and their satisfaction scores), and incorporated the physicians’ offline professional status as the offline reputation (i.e. professional titles and the rankings of their offline working hospitals). We also delved the moderated effects of the city levels where the physicians lived offline and the number of patients who were watching the physicians online. Eight research hypotheses were proposed. Step-wise linear regression models were used to test our hypotheses. Durbin-Watson test and robustness tests were also conducted to ensure the fitness and reliability of our models. RESULTS As a result of the regression models, we found that, 1) physicians’ online reputation, including the number of comments written by the patients (beta=0.588, P<0.001), the satisfaction scores (beta=0.034, P<0.01), significantly and positively influence physicians’ online counseling behaviors; 2) Physicians’ offline reputation, including their professional titles (beta=-0.084, P<0.001) and the hospital rankings (beta=-0.163, P<0.001), significantly and negatively influence physicians’ online counseling behaviors; 3) the city levels where the physicians lived strengthen the negative effect between their offline hospital rankings and their online consulting services (beta=-0.177, P<0.001), indicating that physicians of higher offline reputation spend less time on online counseling, possibly due to the relative heavier offline workload; 4) the number of watching patients weakens the positive effect between patients’ comments and physicians’ online consulting services (beta=-0.216, P<0.001), indicating that the watching patients may switch the channels from online consultation to offline hospital visits after using the Internet hospitals. CONCLUSIONS This study contributed to the literature on physicians online counseling behaviors in Internet hospitals by verifying the contrasting effects of the online reputation and the offline reputation. It then contributed to the motivation theory by separating the online reputation from the offline reputation when the acting entities have constraints of limited time and effort. This study can also provide practical insights for the hospital managers to better arrange for the online counseling services and for the policy makers to consider the patients’ online feedback into the overall evaluation of the physicians’ reputation.

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