Financial inclusion and the performance of microfinance institutions: Does social performance affect the efficiency of microfinance institutions?

What is it about?

Role of Microfinance Institutions (MFIs) in promoting Financial Inclusion is widely applauded. However, to achieve financial sustainability, these MFIs have become highly commercialised and are alleged for their drift in social mission. This study attempts to compare the efficiency of MFIs with and without social performances across the various size of MFIs based on their asset, i.e. large, medium and small. The study used Data Envelopment Analysis (DEA) for analysis of MFI’s efficiency. The efficiency was calculated with and without social output and was compared to see the impact of social performance on the efficiency of the MFIs.

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