Does Regulatory Supervision Curtail Microfinance Profitability and Outreach?
Regulation allows microfinance institutions to evolve more fully into banks, particularly for institutions aiming to take deposits. But there are potential trade-offs. Complying with regulation and supervision can be costly. The authors examine the implications for the institutions profitability and their outreach to small-scale borrowers and women. The tests draw on a new database that combines high-quality financial data on 245 of the world s largest microfinance institutions with newly-constructed data on their prudential supervision. Ordinary least squares regressions show that supervision is negatively associated with profitability. Controlling for the non-random assignment of supervision via treatment effects and instrumental variables regressions, the analysis finds that supervision is associated with substantially larger average loan sizes and less lending to women than in ordinary least squares regressions, although it is not significantly associated with profitability. The pattern is consistent with the notion that profit-oriented microfinance institutions absorb the cost of supervision by curtailing outreach to market segments that tend to be more costly per dollar lent. By contrast, microfinance institutions that rely on non-commercial sources of funding (for example, donations), and thus are less profit-oriented, do not adjust loan sizes or lend less to women when supervised, but their profitability is significantly reduced.
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dig-okr-109864139 |
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koha |
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Bibliográfico |
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| language |
English |
| topic |
ACCESS TO FINANCE ACCOUNTING ADMINISTRATIVE COSTS AFFILIATE ASSET MANAGEMENT ASSET PORTFOLIOS AVERAGE COSTS BALANCE SHEET BANK LENDER BANK LENDING BANK POLICY BANK REGULATION BANK RESTRUCTURING BANK SUPERVISION BANKERS ASSOCIATION BANKING INDUSTRY BANKING LAW BANKING REGULATIONS BANKS BIG BANK BIG BANKS BORROWING BUDGET CONSTRAINTS CALCULATIONS CAPITAL COSTS CHECKS COMMERCIAL BORROWING COMMUNITY BANKS COMPLIANCE COSTS CONSUMER CONSUMER CREDIT CONSUMER PROTECTION CONSUMER PROTECTION LAWS CONVENTIONAL BANK CONVENTIONAL BANK LOANS COOPERATIVES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT RISK CREDIT UNIONS DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DIVIDENDS DUMMY VARIABLE DUMMY VARIABLES EARNINGS ECONOMIES OF SCALE ELECTRONIC FUND EMPLOYEE EQUAL AMOUNT EQUAL CREDIT EQUAL CREDIT OPPORTUNITY EQUATIONS EXCLUSION EXOGENOUS VARIABLES EXPENSE RATIOS EXTERNAL AUDITORS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR POLICY FINANCIAL SELF-SUFFICIENCY FINANCIAL SELF-SUSTAINABILITY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED ASSETS FORMAL FINANCIAL INSTITUTIONS FRAUD FUNDING SOURCES FUTURE RESEARCH GENERAL PUBLIC GNP GNP PER CAPITA HIGH INTEREST RATES HOUSEHOLDS INCOME STATEMENTS INFLATION INFLATION RATE INFORMATION SERVICES INSTITUTIONAL DEVELOPMENT INSTRUMENT INSURANCE AGENCY INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNATIONAL BANK JOINT LIABILITY LABOR COSTS LARGE BANKS LENDER LENDERS LINES OF CREDIT LOAN LOAN OFFICERS LOAN PORTFOLIO LOAN QUALITY LOAN SIZE LOAN SIZES LOANS TO INDIVIDUALS LOANS TO WOMEN LONG-TERM LIABILITIES MACROECONOMIC CONTEXT MACROECONOMIC CONTROLS MARKET INTEREST RATES MFI MFIS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION NET OPERATING INCOME NET PROFIT NON-PERFORMING LOANS NONPERFORMING LOANS OPERATING COST OPERATING EXPENSES OPERATING REVENUE ORGANIZATIONAL STRUCTURE ORGANIZATIONAL STRUCTURES OUTREACH OWNERSHIP STRUCTURE PER CAPITA INCOME POOR BORROWERS PORTFOLIO QUALITY PRIVATE BANKS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION RAPID GROWTH RATE OF INTEREST REAL GDP REAL INTEREST REGIONAL DUMMIES REGIONAL DUMMY REGULATORY AUTHORITIES REGULATORY AUTHORITY REORGANIZATION REPAYMENT REPAYMENT RATES RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURNS RURAL BANKS SAVINGS SENIOR SHAREHOLDER SHAREHOLDERS SMALL LOANS SOLIDARITY LENDING SOURCES OF FUNDS START-UP START-UP COSTS SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POWERS TAX TECHNICAL ASSISTANCE TIME DEPOSITS VILLAGE VOLUNTARY DEPOSITS WOMEN BORROWERS ACCESS TO FINANCE ACCOUNTING ADMINISTRATIVE COSTS AFFILIATE ASSET MANAGEMENT ASSET PORTFOLIOS AVERAGE COSTS BALANCE SHEET BANK LENDER BANK LENDING BANK POLICY BANK REGULATION BANK RESTRUCTURING BANK SUPERVISION BANKERS ASSOCIATION BANKING INDUSTRY BANKING LAW BANKING REGULATIONS BANKS BIG BANK BIG BANKS BORROWING BUDGET CONSTRAINTS CALCULATIONS CAPITAL COSTS CHECKS COMMERCIAL BORROWING COMMUNITY BANKS COMPLIANCE COSTS CONSUMER CONSUMER CREDIT CONSUMER PROTECTION CONSUMER PROTECTION LAWS CONVENTIONAL BANK CONVENTIONAL BANK LOANS COOPERATIVES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT RISK CREDIT UNIONS DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DIVIDENDS DUMMY VARIABLE DUMMY VARIABLES EARNINGS ECONOMIES OF SCALE ELECTRONIC FUND EMPLOYEE EQUAL AMOUNT EQUAL CREDIT EQUAL CREDIT OPPORTUNITY EQUATIONS EXCLUSION EXOGENOUS VARIABLES EXPENSE RATIOS EXTERNAL AUDITORS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR POLICY FINANCIAL SELF-SUFFICIENCY FINANCIAL SELF-SUSTAINABILITY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED ASSETS FORMAL FINANCIAL INSTITUTIONS FRAUD FUNDING SOURCES FUTURE RESEARCH GENERAL PUBLIC GNP GNP PER CAPITA HIGH INTEREST RATES HOUSEHOLDS INCOME STATEMENTS INFLATION INFLATION RATE INFORMATION SERVICES INSTITUTIONAL DEVELOPMENT INSTRUMENT INSURANCE AGENCY INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNATIONAL BANK JOINT LIABILITY LABOR COSTS LARGE BANKS LENDER LENDERS LINES OF CREDIT LOAN LOAN OFFICERS LOAN PORTFOLIO LOAN QUALITY LOAN SIZE LOAN SIZES LOANS TO INDIVIDUALS LOANS TO WOMEN LONG-TERM LIABILITIES MACROECONOMIC CONTEXT MACROECONOMIC CONTROLS MARKET INTEREST RATES MFI MFIS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION NET OPERATING INCOME NET PROFIT NON-PERFORMING LOANS NONPERFORMING LOANS OPERATING COST OPERATING EXPENSES OPERATING REVENUE ORGANIZATIONAL STRUCTURE ORGANIZATIONAL STRUCTURES OUTREACH OWNERSHIP STRUCTURE PER CAPITA INCOME POOR BORROWERS PORTFOLIO QUALITY PRIVATE BANKS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION RAPID GROWTH RATE OF INTEREST REAL GDP REAL INTEREST REGIONAL DUMMIES REGIONAL DUMMY REGULATORY AUTHORITIES REGULATORY AUTHORITY REORGANIZATION REPAYMENT REPAYMENT RATES RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURNS RURAL BANKS SAVINGS SENIOR SHAREHOLDER SHAREHOLDERS SMALL LOANS SOLIDARITY LENDING SOURCES OF FUNDS START-UP START-UP COSTS SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POWERS TAX TECHNICAL ASSISTANCE TIME DEPOSITS VILLAGE VOLUNTARY DEPOSITS WOMEN BORROWERS |
| spellingShingle |
ACCESS TO FINANCE ACCOUNTING ADMINISTRATIVE COSTS AFFILIATE ASSET MANAGEMENT ASSET PORTFOLIOS AVERAGE COSTS BALANCE SHEET BANK LENDER BANK LENDING BANK POLICY BANK REGULATION BANK RESTRUCTURING BANK SUPERVISION BANKERS ASSOCIATION BANKING INDUSTRY BANKING LAW BANKING REGULATIONS BANKS BIG BANK BIG BANKS BORROWING BUDGET CONSTRAINTS CALCULATIONS CAPITAL COSTS CHECKS COMMERCIAL BORROWING COMMUNITY BANKS COMPLIANCE COSTS CONSUMER CONSUMER CREDIT CONSUMER PROTECTION CONSUMER PROTECTION LAWS CONVENTIONAL BANK CONVENTIONAL BANK LOANS COOPERATIVES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT RISK CREDIT UNIONS DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DIVIDENDS DUMMY VARIABLE DUMMY VARIABLES EARNINGS ECONOMIES OF SCALE ELECTRONIC FUND EMPLOYEE EQUAL AMOUNT EQUAL CREDIT EQUAL CREDIT OPPORTUNITY EQUATIONS EXCLUSION EXOGENOUS VARIABLES EXPENSE RATIOS EXTERNAL AUDITORS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR POLICY FINANCIAL SELF-SUFFICIENCY FINANCIAL SELF-SUSTAINABILITY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED ASSETS FORMAL FINANCIAL INSTITUTIONS FRAUD FUNDING SOURCES FUTURE RESEARCH GENERAL PUBLIC GNP GNP PER CAPITA HIGH INTEREST RATES HOUSEHOLDS INCOME STATEMENTS INFLATION INFLATION RATE INFORMATION SERVICES INSTITUTIONAL DEVELOPMENT INSTRUMENT INSURANCE AGENCY INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNATIONAL BANK JOINT LIABILITY LABOR COSTS LARGE BANKS LENDER LENDERS LINES OF CREDIT LOAN LOAN OFFICERS LOAN PORTFOLIO LOAN QUALITY LOAN SIZE LOAN SIZES LOANS TO INDIVIDUALS LOANS TO WOMEN LONG-TERM LIABILITIES MACROECONOMIC CONTEXT MACROECONOMIC CONTROLS MARKET INTEREST RATES MFI MFIS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION NET OPERATING INCOME NET PROFIT NON-PERFORMING LOANS NONPERFORMING LOANS OPERATING COST OPERATING EXPENSES OPERATING REVENUE ORGANIZATIONAL STRUCTURE ORGANIZATIONAL STRUCTURES OUTREACH OWNERSHIP STRUCTURE PER CAPITA INCOME POOR BORROWERS PORTFOLIO QUALITY PRIVATE BANKS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION RAPID GROWTH RATE OF INTEREST REAL GDP REAL INTEREST REGIONAL DUMMIES REGIONAL DUMMY REGULATORY AUTHORITIES REGULATORY AUTHORITY REORGANIZATION REPAYMENT REPAYMENT RATES RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURNS RURAL BANKS SAVINGS SENIOR SHAREHOLDER SHAREHOLDERS SMALL LOANS SOLIDARITY LENDING SOURCES OF FUNDS START-UP START-UP COSTS SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POWERS TAX TECHNICAL ASSISTANCE TIME DEPOSITS VILLAGE VOLUNTARY DEPOSITS WOMEN BORROWERS ACCESS TO FINANCE ACCOUNTING ADMINISTRATIVE COSTS AFFILIATE ASSET MANAGEMENT ASSET PORTFOLIOS AVERAGE COSTS BALANCE SHEET BANK LENDER BANK LENDING BANK POLICY BANK REGULATION BANK RESTRUCTURING BANK SUPERVISION BANKERS ASSOCIATION BANKING INDUSTRY BANKING LAW BANKING REGULATIONS BANKS BIG BANK BIG BANKS BORROWING BUDGET CONSTRAINTS CALCULATIONS CAPITAL COSTS CHECKS COMMERCIAL BORROWING COMMUNITY BANKS COMPLIANCE COSTS CONSUMER CONSUMER CREDIT CONSUMER PROTECTION CONSUMER PROTECTION LAWS CONVENTIONAL BANK CONVENTIONAL BANK LOANS COOPERATIVES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT RISK CREDIT UNIONS DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DIVIDENDS DUMMY VARIABLE DUMMY VARIABLES EARNINGS ECONOMIES OF SCALE ELECTRONIC FUND EMPLOYEE EQUAL AMOUNT EQUAL CREDIT EQUAL CREDIT OPPORTUNITY EQUATIONS EXCLUSION EXOGENOUS VARIABLES EXPENSE RATIOS EXTERNAL AUDITORS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR POLICY FINANCIAL SELF-SUFFICIENCY FINANCIAL SELF-SUSTAINABILITY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED ASSETS FORMAL FINANCIAL INSTITUTIONS FRAUD FUNDING SOURCES FUTURE RESEARCH GENERAL PUBLIC GNP GNP PER CAPITA HIGH INTEREST RATES HOUSEHOLDS INCOME STATEMENTS INFLATION INFLATION RATE INFORMATION SERVICES INSTITUTIONAL DEVELOPMENT INSTRUMENT INSURANCE AGENCY INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNATIONAL BANK JOINT LIABILITY LABOR COSTS LARGE BANKS LENDER LENDERS LINES OF CREDIT LOAN LOAN OFFICERS LOAN PORTFOLIO LOAN QUALITY LOAN SIZE LOAN SIZES LOANS TO INDIVIDUALS LOANS TO WOMEN LONG-TERM LIABILITIES MACROECONOMIC CONTEXT MACROECONOMIC CONTROLS MARKET INTEREST RATES MFI MFIS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION NET OPERATING INCOME NET PROFIT NON-PERFORMING LOANS NONPERFORMING LOANS OPERATING COST OPERATING EXPENSES OPERATING REVENUE ORGANIZATIONAL STRUCTURE ORGANIZATIONAL STRUCTURES OUTREACH OWNERSHIP STRUCTURE PER CAPITA INCOME POOR BORROWERS PORTFOLIO QUALITY PRIVATE BANKS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION RAPID GROWTH RATE OF INTEREST REAL GDP REAL INTEREST REGIONAL DUMMIES REGIONAL DUMMY REGULATORY AUTHORITIES REGULATORY AUTHORITY REORGANIZATION REPAYMENT REPAYMENT RATES RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURNS RURAL BANKS SAVINGS SENIOR SHAREHOLDER SHAREHOLDERS SMALL LOANS SOLIDARITY LENDING SOURCES OF FUNDS START-UP START-UP COSTS SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POWERS TAX TECHNICAL ASSISTANCE TIME DEPOSITS VILLAGE VOLUNTARY DEPOSITS WOMEN BORROWERS Cull, Robert Demirgüç-Kunt, Asli Morduch, Jonathan Does Regulatory Supervision Curtail Microfinance Profitability and Outreach? |
| description |
Regulation allows microfinance
institutions to evolve more fully into banks, particularly
for institutions aiming to take deposits. But there are
potential trade-offs. Complying with regulation and
supervision can be costly. The authors examine the
implications for the institutions profitability and their
outreach to small-scale borrowers and women. The tests draw
on a new database that combines high-quality financial data
on 245 of the world s largest microfinance institutions with
newly-constructed data on their prudential supervision.
Ordinary least squares regressions show that supervision is
negatively associated with profitability. Controlling for
the non-random assignment of supervision via treatment
effects and instrumental variables regressions, the analysis
finds that supervision is associated with substantially
larger average loan sizes and less lending to women than in
ordinary least squares regressions, although it is not
significantly associated with profitability. The pattern is
consistent with the notion that profit-oriented microfinance
institutions absorb the cost of supervision by curtailing
outreach to market segments that tend to be more costly per
dollar lent. By contrast, microfinance institutions that
rely on non-commercial sources of funding (for example,
donations), and thus are less profit-oriented, do not adjust
loan sizes or lend less to women when supervised, but their
profitability is significantly reduced. |
| topic_facet |
ACCESS TO FINANCE ACCOUNTING ADMINISTRATIVE COSTS AFFILIATE ASSET MANAGEMENT ASSET PORTFOLIOS AVERAGE COSTS BALANCE SHEET BANK LENDER BANK LENDING BANK POLICY BANK REGULATION BANK RESTRUCTURING BANK SUPERVISION BANKERS ASSOCIATION BANKING INDUSTRY BANKING LAW BANKING REGULATIONS BANKS BIG BANK BIG BANKS BORROWING BUDGET CONSTRAINTS CALCULATIONS CAPITAL COSTS CHECKS COMMERCIAL BORROWING COMMUNITY BANKS COMPLIANCE COSTS CONSUMER CONSUMER CREDIT CONSUMER PROTECTION CONSUMER PROTECTION LAWS CONVENTIONAL BANK CONVENTIONAL BANK LOANS COOPERATIVES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT RISK CREDIT UNIONS DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DIVIDENDS DUMMY VARIABLE DUMMY VARIABLES EARNINGS ECONOMIES OF SCALE ELECTRONIC FUND EMPLOYEE EQUAL AMOUNT EQUAL CREDIT EQUAL CREDIT OPPORTUNITY EQUATIONS EXCLUSION EXOGENOUS VARIABLES EXPENSE RATIOS EXTERNAL AUDITORS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR POLICY FINANCIAL SELF-SUFFICIENCY FINANCIAL SELF-SUSTAINABILITY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED ASSETS FORMAL FINANCIAL INSTITUTIONS FRAUD FUNDING SOURCES FUTURE RESEARCH GENERAL PUBLIC GNP GNP PER CAPITA HIGH INTEREST RATES HOUSEHOLDS INCOME STATEMENTS INFLATION INFLATION RATE INFORMATION SERVICES INSTITUTIONAL DEVELOPMENT INSTRUMENT INSURANCE AGENCY INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNATIONAL BANK JOINT LIABILITY LABOR COSTS LARGE BANKS LENDER LENDERS LINES OF CREDIT LOAN LOAN OFFICERS LOAN PORTFOLIO LOAN QUALITY LOAN SIZE LOAN SIZES LOANS TO INDIVIDUALS LOANS TO WOMEN LONG-TERM LIABILITIES MACROECONOMIC CONTEXT MACROECONOMIC CONTROLS MARKET INTEREST RATES MFI MFIS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION NET OPERATING INCOME NET PROFIT NON-PERFORMING LOANS NONPERFORMING LOANS OPERATING COST OPERATING EXPENSES OPERATING REVENUE ORGANIZATIONAL STRUCTURE ORGANIZATIONAL STRUCTURES OUTREACH OWNERSHIP STRUCTURE PER CAPITA INCOME POOR BORROWERS PORTFOLIO QUALITY PRIVATE BANKS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION RAPID GROWTH RATE OF INTEREST REAL GDP REAL INTEREST REGIONAL DUMMIES REGIONAL DUMMY REGULATORY AUTHORITIES REGULATORY AUTHORITY REORGANIZATION REPAYMENT REPAYMENT RATES RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURNS RURAL BANKS SAVINGS SENIOR SHAREHOLDER SHAREHOLDERS SMALL LOANS SOLIDARITY LENDING SOURCES OF FUNDS START-UP START-UP COSTS SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POWERS TAX TECHNICAL ASSISTANCE TIME DEPOSITS VILLAGE VOLUNTARY DEPOSITS WOMEN BORROWERS |
| author |
Cull, Robert Demirgüç-Kunt, Asli Morduch, Jonathan |
| author_facet |
Cull, Robert Demirgüç-Kunt, Asli Morduch, Jonathan |
| author_sort |
Cull, Robert |
| title |
Does Regulatory Supervision Curtail Microfinance Profitability and Outreach? |
| title_short |
Does Regulatory Supervision Curtail Microfinance Profitability and Outreach? |
| title_full |
Does Regulatory Supervision Curtail Microfinance Profitability and Outreach? |
| title_fullStr |
Does Regulatory Supervision Curtail Microfinance Profitability and Outreach? |
| title_full_unstemmed |
Does Regulatory Supervision Curtail Microfinance Profitability and Outreach? |
| title_sort |
does regulatory supervision curtail microfinance profitability and outreach? |
| publishDate |
2009-06-01 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090601114132 https://hdl.handle.net/10986/4139 |
| work_keys_str_mv |
AT cullrobert doesregulatorysupervisioncurtailmicrofinanceprofitabilityandoutreach AT demirguckuntasli doesregulatorysupervisioncurtailmicrofinanceprofitabilityandoutreach AT morduchjonathan doesregulatorysupervisioncurtailmicrofinanceprofitabilityandoutreach |
| _version_ |
1807159642111868928 |
| spelling |
dig-okr-1098641392024-08-08T16:24:40Z Does Regulatory Supervision Curtail Microfinance Profitability and Outreach? Cull, Robert Demirgüç-Kunt, Asli Morduch, Jonathan ACCESS TO FINANCE ACCOUNTING ADMINISTRATIVE COSTS AFFILIATE ASSET MANAGEMENT ASSET PORTFOLIOS AVERAGE COSTS BALANCE SHEET BANK LENDER BANK LENDING BANK POLICY BANK REGULATION BANK RESTRUCTURING BANK SUPERVISION BANKERS ASSOCIATION BANKING INDUSTRY BANKING LAW BANKING REGULATIONS BANKS BIG BANK BIG BANKS BORROWING BUDGET CONSTRAINTS CALCULATIONS CAPITAL COSTS CHECKS COMMERCIAL BORROWING COMMUNITY BANKS COMPLIANCE COSTS CONSUMER CONSUMER CREDIT CONSUMER PROTECTION CONSUMER PROTECTION LAWS CONVENTIONAL BANK CONVENTIONAL BANK LOANS COOPERATIVES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT RISK CREDIT UNIONS DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DIVIDENDS DUMMY VARIABLE DUMMY VARIABLES EARNINGS ECONOMIES OF SCALE ELECTRONIC FUND EMPLOYEE EQUAL AMOUNT EQUAL CREDIT EQUAL CREDIT OPPORTUNITY EQUATIONS EXCLUSION EXOGENOUS VARIABLES EXPENSE RATIOS EXTERNAL AUDITORS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR POLICY FINANCIAL SELF-SUFFICIENCY FINANCIAL SELF-SUSTAINABILITY FINANCIAL SERVICES FINANCIAL STATEMENT FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED ASSETS FORMAL FINANCIAL INSTITUTIONS FRAUD FUNDING SOURCES FUTURE RESEARCH GENERAL PUBLIC GNP GNP PER CAPITA HIGH INTEREST RATES HOUSEHOLDS INCOME STATEMENTS INFLATION INFLATION RATE INFORMATION SERVICES INSTITUTIONAL DEVELOPMENT INSTRUMENT INSURANCE AGENCY INTEREST INCOME INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNATIONAL BANK JOINT LIABILITY LABOR COSTS LARGE BANKS LENDER LENDERS LINES OF CREDIT LOAN LOAN OFFICERS LOAN PORTFOLIO LOAN QUALITY LOAN SIZE LOAN SIZES LOANS TO INDIVIDUALS LOANS TO WOMEN LONG-TERM LIABILITIES MACROECONOMIC CONTEXT MACROECONOMIC CONTROLS MARKET INTEREST RATES MFI MFIS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION NET OPERATING INCOME NET PROFIT NON-PERFORMING LOANS NONPERFORMING LOANS OPERATING COST OPERATING EXPENSES OPERATING REVENUE ORGANIZATIONAL STRUCTURE ORGANIZATIONAL STRUCTURES OUTREACH OWNERSHIP STRUCTURE PER CAPITA INCOME POOR BORROWERS PORTFOLIO QUALITY PRIVATE BANKS PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION RAPID GROWTH RATE OF INTEREST REAL GDP REAL INTEREST REGIONAL DUMMIES REGIONAL DUMMY REGULATORY AUTHORITIES REGULATORY AUTHORITY REORGANIZATION REPAYMENT REPAYMENT RATES RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURNS RURAL BANKS SAVINGS SENIOR SHAREHOLDER SHAREHOLDERS SMALL LOANS SOLIDARITY LENDING SOURCES OF FUNDS START-UP START-UP COSTS SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POWERS TAX TECHNICAL ASSISTANCE TIME DEPOSITS VILLAGE VOLUNTARY DEPOSITS WOMEN BORROWERS Regulation allows microfinance institutions to evolve more fully into banks, particularly for institutions aiming to take deposits. But there are potential trade-offs. Complying with regulation and supervision can be costly. The authors examine the implications for the institutions profitability and their outreach to small-scale borrowers and women. The tests draw on a new database that combines high-quality financial data on 245 of the world s largest microfinance institutions with newly-constructed data on their prudential supervision. Ordinary least squares regressions show that supervision is negatively associated with profitability. Controlling for the non-random assignment of supervision via treatment effects and instrumental variables regressions, the analysis finds that supervision is associated with substantially larger average loan sizes and less lending to women than in ordinary least squares regressions, although it is not significantly associated with profitability. The pattern is consistent with the notion that profit-oriented microfinance institutions absorb the cost of supervision by curtailing outreach to market segments that tend to be more costly per dollar lent. By contrast, microfinance institutions that rely on non-commercial sources of funding (for example, donations), and thus are less profit-oriented, do not adjust loan sizes or lend less to women when supervised, but their profitability is significantly reduced. 2012-03-19T19:10:38Z 2012-03-19T19:10:38Z 2009-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090601114132 https://hdl.handle.net/10986/4139 English Policy Research Working Paper ; No. 4948 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain |