Determinants of Outreach Performance of Microfinance Institutions in Pakistan

Authors

  • Muhammad Saad
  • Hasniza Mohd Taib.,PhD
  • Abul Bashar Bhuiyan

Keywords:

outreach, performance, depth, breadth, microfinance, microfinance institutions

Abstract

Microfinance institutions (MFIs) are developed to provide financial services to poor people usually ignored by commercialized institutions. Their main purpose is to increase outreach both in terms of depth and breadth, by providing small loans and reaching maximum number of poor people. This study aims to study the factors that influence the outreach performance of MFIs in Pakistan. By using random effect regression, factors that influence the depth and breadth of outreach were determined. Return on asset and firm size effect both the depth and breadth of outreach, whereas, portfolio at risk greater than 30 days impact the breadth of outreach only. Additionally, operating expense ratio does not influence the outreach performance of MFI.

Author Biographies

Muhammad Saad

School of Economics, Finance and Banking,

University Utara Malaysia, Malaysia

Hasniza Mohd Taib.,PhD

School of Economics, Finance and Banking,

University Utara Malaysia, Malaysia

Abul Bashar Bhuiyan

Faculty of Business and Accountancy (FBA)
University of Selangor, Malaysia

Published

2017-12-15

Issue

Section

Articles