scholarly journals Effect of Regulation on Outreach of Microfinance Institutions in Ghana

2019 ◽  
Vol 9 (1) ◽  
pp. 317 ◽  
Author(s):  
Joyce Ama Quartey ◽  
Bernice Kotey
Keyword(s):  
Central Bank ◽  
Research Design ◽  
Financial Services ◽  
Small Businesses ◽  
Mixed Methods Research ◽  
Poverty Reduction ◽  
Growth Potential ◽  
Microfinance Institutions ◽  
The Poor ◽  
The Government

Microfinance institutions (MFIs) play an important role in enhancing the growth potential of small businesses. However, while regulation ensures that MFIs are financially sustainable, compliance compels them to make large-sized loans to wealthy clients in order to reduce the risk of lending and minimize administrative costs, a situation that compromises their main goal of reaching out to the poor. The study therefore, examined the effect of regulation on breadth and depth of outreach by microfinance institutions (MFIs) in Ghana. The purpose of the study is to find out whether regulation has enabled MFIs to increase their outreach (breadth and depth) thereby improving their sustainability. A mixed methods research design was employed, involving initial hypotheses testing with 31 self-regulated and 24 Central bank-regulated MFIs. The findings were then triangulated with a qualitative research design involving 13 Central bank-regulated and 20 self-regulated MFIs. The results showed that regulations increased the client base of MFIs but reduced the percentage of poor clients served, largely women. It is recommended that the government set up a fund for poor clients to be accessed by well-performing MFIs for provision of financial services to the poor to assist in poverty reduction.

Pros and Cons of Integrating Non-Financial Services in Microfinance

2018 ◽  
pp. 171-199
Author(s):  
Nhung Thi Hong Vu
Keyword(s):  
Social Services ◽  
Financial Services ◽  
Poverty Reduction ◽  
Microfinance Institutions ◽  
Negative Effects ◽  
The Poor ◽  
Need Support ◽  
Microfinance Institution ◽  
Pros And Cons

Microfinance as argued in recent literature is not a panacea for poverty reduction as it was expected. The poor may need support from various ranges of non-financial services including business development services and social services alongside microfinance services. The main aim of this chapter is to provide policymakers and practitioners some discussions on the pros and cons of integrating non-financial services together with microfinance services. This chapter proposes a framework of both positive and negative effects of providing non-financial services on microfinance institutions and clients. A case study of offering non-financial services in a microfinance institution in Vietnam provides both quantitative and qualitative evidence of effects on the microfinance institution and its clients.

scholarly journals Microfinance Complementarity and Trade-Off between Financial Performance and Social Impact

2015 ◽  
Vol 7 (11) ◽  
pp. 128 ◽  
Author(s):  
Trong V. Ngo
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Poverty Reduction ◽  
Social Impact ◽  
Economies Of Scale ◽  
Generalized Method Of Moments ◽  
Microfinance Institutions ◽  
Trade Off ◽  
The Poor ◽  
Trade Offs

There is a widespread belief that providing access to financial services (microfinance) or reaching the poor with microcredit are perfect solutions to establish a sustainable economy or to help kick-start a bottom-up recovery and social development animated by the poor themselves through self-employment and microenterprises. Microfinance has therefore become an important instrument for poverty alleviation and for improving the welfare of the poor in both developing and transition economies. Due to the difficulty of targeting the poor, who have a lack of collateral, microfinance institutions (MFIs) are called on to achieve a balance between social impact (poverty reduction) and positive financial performance. This paper assumes that the financial objectives of MFIs operate in opposition to each other and that a trade-off is inevitable. Unbalanced panel data of MFIs for the period 1995-2013 has been extracted from the MIX Market website. In order to solve the endogeneity problem, this paper employed the dynamic system GMM (generalized method of moments) of Blundell and Bond (1998) that is considered as the new methodology currently in use in the empirical investigation of the financial performance in banking and finance. This paper outlines some of the parameters that affect the nature of trade-offs and complementarities between social and financial objectives in microfinance performance, and provides empirical evidence from cross-country analysis. Sustainability has a positive link with outreach. MFIs tend to expand their outreach in order to achieve sustainability, based on the advantages of the economies of scale. However, a threshold which makes the trade-offs or complementarities between financial and social objectives reverse if it goes beyond a certain point is also observed.

scholarly journals Microfinance As A Tool For Poverty Reduction: A Study Of Jordan

2015 ◽  
Vol 46 (4) ◽  
pp. 172-180 ◽  
Author(s):  
M. Žiaková ◽  
V. Verner
Keyword(s):  
Small Businesses ◽  
Poverty Reduction ◽  
Social Situation ◽  
Future Generations ◽  
Microfinance Institutions ◽  
Self Employment ◽  
The Poor ◽  
The Social ◽  
The Impact ◽  
Female Clients

Abstract The aim of this study is to evaluate the impact of microfinance on the poor, particularly in the specific areas of economic and social development of people and their employment. The research was carried out in Jordan, a country with a well-developed microfinance sector. The results have shown that microfinance has led to an improvement in the financial and social situation of the poor, especially for female clients of microfinance institutions. Interestingly, the higher income of clients has not caused higher expenditure on their basic needs, but rather people have generated saving for their future and used the additional money for education. According to the results of the microfinance impact assessment, it can be assumed that people, particularly females, prefer to improve the social situation for future generations. Based on this finding, we consider microfinance an effective tool for breaking the vicious circles of poverty, especially in Jordan. Furthermore, microcredits have facilitated in increasing employment for the poor, mainly through self-employment. It is believed that there exists a direct connection to the future expansion of microcredits that will lead to the development of small businesses with a promising impact on employability throughout the population structure.

scholarly journals SOCIO-ECONOMIC FACTORS AFFECTING THE REDUCTION OF POVERTY IN INDONESIA IN ISLAMIC PERSPECTIVE

2016 ◽  
Vol 11 (1) ◽  
pp. 33
Author(s):  
Tatik Mariyanti
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Time Series Data ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Series Data ◽  
Microfinance Institutions ◽  
Variable Effect ◽  
The Poor ◽  
The Government

<p>In a developing country poverty reduction programs has become the center of attention in policy at national and at international agencies and institutions. This study aims to analyze the socioeconomic factors that affect poverty reduction in the perspective of Islam in Indonesia in 1994 until 2009, the data used in this study is time series data, using the variable as a determining factor of poverty in Indonesia is economic growth, the proportion of the population informal working sector, the proportion of population consuming malnutrition, the proportion of secondary-educated population down, unemployment, investment, government policy in the form of subsidies which are: subsidy funds derived from IDT, P2KP, PNP, Independent, PPIP, in addition to data from the BMT form of funding given to the poor, as well as data zakat alms per person infak poor. Analysis tools used in this study is to use a simultaneous equation model<br />analysis using the software Eviews-4. From the analysis it can be concluded that all variables are seen in this study a significant influence on poverty reduction in Indonesia in 1994 until 2009, but subsidies and Islam is very small variable effect on poverty reduction in Indonesia.<br />Recommendation of this study is the government should help in terms of funding for development of SMEs due to the Islamic microfinance institutions in effect, reduce poverty, and economic growth can reduce poverty is economic growth and equitable quality, investment as a contributor to economic growth must be done in the form of accelerated industrialization, the accumulation of<br />human capital in the form of education, as well as development and infrastructure improvements throughout the country. With the Islamic instruments namely zakat alms infaq very influential on poverty reduction while very little influence, because in Indonesia the role of zakat institutions have not been efficient because more people believe in giving alms alms infaq directly to the poor or the foundation that manages the orphans, but if domestic policy makers This would seriously to gradually use the instruments of Islamic finance as an instrument of poverty reduction, the authors believe poverty alleviation will be accelerated as well. Our nation will have economic independence, sovereignty and dignity so that the State can be maintained.</p>

Microfinance and Social Performance

2010 ◽  
Author(s):  
Robin Gravesteijn ◽  
James Copestake
Keyword(s):  
Interest Rates ◽  
Financial Services ◽  
Small Businesses ◽  
Social Performance ◽  
Environmental Conservation ◽  
Bank Loan ◽  
Poor People ◽  
Microfinance Institutions ◽  
The Poor ◽  
Wide Range

Microfinance refers to an array of financial services—including loans, savings, and insurance—available to poor entrepreneurs and small business owners who have no collateral and, otherwise, would not qualify for a standard bank loan. Those who promote microfinance generally believe that such access will help poor people out of poverty. For many, microfinance is a way to promote economic development, employment, and growth through the support of micro-entrepreneurs and small businesses; for others, it is a way for the poor to manage their finances more effectively and take advantage of economic opportunities while managing the risks. One of the newer fields that is getting more attention within microfinance is the measure of microfinance institutions’ (MFIs) social performance, which broadly is an indication of how well an MFI meets the social goals outlined in its mission and vision. Social performance is reflected in a wide range of indicators, including an MFI’s policies towards employees, like providing health care or maternity leave; to what degree an MFI targets the poorest of the poor for financial services; an MFI’s policies on environmental conservation; how low an MFI keeps its interest rates; how transparent an MFI is about these interest rates and other loan terms; and how an MFI’s services translate into improved lives for their clients.

SOCIO-ECONOMIC EMPOWERMENT OF WOMEN THROUGH MICRO CREDIT: AN EMPIRICAL STUDY

2021 ◽  
pp. 58-60
Author(s):  
T. Indumathi ◽  
G. Savaraiah
Keyword(s):  
Rural Women ◽  
Poverty Reduction ◽  
Rural Poverty ◽  
Poverty Line ◽  
Economic Empowerment ◽  
Political Empowerment ◽  
The Poor ◽  
The Government ◽  
The Impact ◽  
Micro Credit

The World Bank's Andhra Pradesh Rural Poverty Reduction Project supports the self helf groups of the women members. It promotes women's social, economic, legal and political empowerment to reduce poverty among the poor and the poorest of the poor. The important object of this article is to examine the impact of micronance on the socio economic empowerment of the rural women supported by the national reputed NGO- Rashtriya Seva Samithi (RASS). 184 women members of the SHGs promoted by Rasthriya Seva Samathi (RASS) an NGO which located in Tirupati town. 184 samples are selected randomly from 15 SHGs scattered throughout the Tirupati rural mandal (Taluk) from the area of the study have been considered to conduct the present research study. The study reveals that 87.71 percent of the sample women were below the poverty line before joining the SHGs. As a result of SHG, about 40 percent of the sample women crossed the poverty line. The highest intensive value indicates that more women have participated in social agitations for the welfare of the children and the society. The second highest intensity reveals that considerable numbers of women of SHGs have participated in the government sponsored schemes. The 1st point secured 3rd rank with total intensity value of 605 which status that the micro credit has resulted in increased social status and empowerment.

scholarly journals DINAMIKA KERAGAAN KEMISKINAN DI DESA PATANAS DAN UPAYA MENGATASINYA

2017 ◽  
Vol 11 (1) ◽  
pp. 118
Author(s):  
Valeriana Darwis
Keyword(s):  
Poverty Reduction ◽  
Agricultural Sector ◽  
Arable Land ◽  
Land Ownership ◽  
Land Rent ◽  
Irrigated Rice ◽  
The Poor ◽  
Development Agenda ◽  
The Government ◽  
Negative Growth

Poverty reduction  is a priority  development agenda  and  a lot of  programs or  policies  that  have  been  implemented  by  the  government.  One  of  the  pockets  of poverty  are  diperdesaan  where  people  work  in  the  agricultural  sector.  In  locations irrigated  rice  agro-ecosystem  study  the  performance  of  rice-based  poverty  in  2007 and 2010  experienced a  negative growth,  it is seen from: (i)  reduced  employment  and increased  unemployment,  (ii)  a source  of income  from  agriculture  generally,  but  she became  a source  of income  in  non-agriculture,  (iii)  land  ownership  between  0.25 to 1 ha  and  reverse  the  decline  of arable land  rent  is increasing,  (iv)  expenditure  on food increased  primarily  to  meet  the  needs  of  carbohydrates  and  animal  sources.  The dynamics of  the most  positive  efforts  made  respondents  in addressing  the problem of food  by  way  of  debt,  overcoming  difficulties  by  reducing  the  amount  of  clothing purchases,  overcoming  difficulties  fulfilling  its way into  participants  health  insurance for the poor,  addressing  educational  problems  by borrowing  money  or  do not  attend school.

scholarly journals FINANCIAL INCLUSION AND POVERTY ALLEVIATION AMONG SMALLHOLDER FARMERS IN ZIMBABWE

2020 ◽  
Vol 8 (3) ◽  
pp. 168-182
Author(s):  
David Mhlanga ◽  
◽  
Steven Henry Dunga ◽  
Tankiso Moloi ◽  
◽  
...  
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Poverty Reduction ◽  
Smallholder Farmers ◽  
Financial Education ◽  
Financial Inclusion ◽  
Strong Impact ◽  
Development Goals ◽  
The Government ◽  
The Impact

The study sought to investigate the impact of financial inclusion on poverty reduction in Zimbabwe among the smallholder farmers. It is alleged that financial inclusion can help in achieving seven of the seventeen sustainable development goals (SDGs), which include poverty eradication in all its forms everywhere, ending hunger, achieving food security, ensuring improved nutrition as well as promoting sustainable agriculture and many others. Using the simple regression method, the study discovered that financial inclusion has a strong impact on poverty reduction among smallholder farmers. The study went on to discover that, for the government to tackle poverty especially among the smallholder farmers, it is important to ensure that farmers do participate in the financial sector through saving, borrowing and taking out insurance among other services. So, it is important for the government of Zimbabwe to fully implement policies that encourage financial inclusion such as making sure that farmers find it easy to access financial institutions and encouraging financial institutions to review transaction costs like bank account opening charges periodically, implementing financial education programs among the farmers because these variables are important in influencing farmers to participate or preventing them from using financial services.

scholarly journals Empowering Women through Financial Inclusion in Zimbabwe Is the Gender Gap Not Encroaching This Noble Cause?

2021 ◽  
Vol 8 (1) ◽  
pp. 53-64
Author(s):  
Lettiah Gumbo ◽  
Precious Dube ◽  
Muhammad Ridwan
Keyword(s):  
Economic Growth ◽  
Gender Gap ◽  
Financial Services ◽  
Poverty Reduction ◽  
National Development ◽  
Financial Inclusion ◽  
Financial Products ◽  
Research Findings ◽  
The Government ◽  
Financial Awareness

One of the most effective catalysts of economic growth of any nation is obviously financial inclusion. However, in developing countries such as Zimbabwe gender gap is still an impediment to the achievement of financial inclusion for all. Research findings for this paper show that, increasing women’s financial opportunities and financial awareness on how to access financial products and services will go a long way in reducing the gender gap. Furthermore, increasing access to and use of quality financial products and services is essential to inclusive economic growth and poverty reduction. Although the government of Zimbabwe is taking steps to increase women financial inclusiveness, research shows that women in Zimbabwe trail behind men in as far as access to financial services is concerned. Zimbabwean communities remain dominantly patriarchal and women are always lagging behind in developmental projects meant for their empowerment. This paper seeks to assess the implementation of women’s financial inclusion highlighting opportunities and barriers such as the gender gap and how this may be overcome. The study is qualitative in nature and therefore makes use of interviews and questionnaires for data collection. It is envisioned by the researchers that the research findings will be beneficial to women; their empowerment and development and national development. It is hoped to change the way in which the banking and financial sectors deal with women’s financial inclusion for the betterment of their livelihoods.  Furthermore, women’s financial empowerment will improve livelihoods of many families given the caring nature of mothers, sisters, aunts and grandmothers.

Growth and Development of Small Business Through Microfinance Activities in Nepal

2020 ◽  
Vol 1 (1) ◽  
pp. 26-34
Author(s):  
Chandra Prasad Dhakal
Keyword(s):  
Small Business ◽  
Financial Services ◽  
Small Businesses ◽  
Growth And Development ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Business Owners ◽  
Small Business Owners ◽  
Microfinance Institutions ◽  
Economic Activities

Small businesses play important role for economic development and stability. It develops access in financial services through enhancing economic activities. The study analyzes the growth and development of small businesses that enhance through the support of micro finance in Nepal. Descriptive and inferential were used to collected data and collected data were analyzed through using multiple linear regression analysis. Only 124 small business owners were selected for this study. The study helps to find out the growth of microfinance institutions (MFIs) and small businesses in emerging economy in Nepal. It also assists MFIs to assess the effectiveness of their services and help to efficient utilization of available resources in the economy of Nepal.

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