Statistical Analysis of the Performance of Micro Finance Institutions: The Case of Ethiopia
| dc.contributor.advisor | G/yohannes, Emmanuel (PhD) | |
| dc.contributor.author | Anduanbessa, Tsegaye | |
| dc.date.accessioned | 2022-04-15T07:36:00Z | |
| dc.date.accessioned | 2023-11-09T14:29:38Z | |
| dc.date.available | 2022-04-15T07:36:00Z | |
| dc.date.available | 2023-11-09T14:29:38Z | |
| dc.date.issued | 2008-06 | |
| dc.description.abstract | Nowadays, governments and many development agents pay great attention to the development and enhancement of Microfinance Institutions (MFIs) anticipating that they are the shortest way to end poverty. Many scholars and stakeholders also acknowledge that MFIs are the possible panacea to under development but they stress on the proper supervision and regulation of these MFIs as they are mobilizing susceptible resources. However, evaluating the performance of MFIs is found to be among the most controversial issues throughout the world leave alone in countries like Ethiopia where the micro financing business is at its infant age. Different researchers and practitioners found in different corners of the world employ various kinds of approaches to scrutinize the performance of MFIs. It is crucial for countries to measure the performance of their MFIs and identify the major determinants of their performance, at any cost, in order to see their relevance and prospects prior to new policy developments, strategic planning and so on. Tlus paper, therefore, tried to give statistical insight in measuring the performance of MFIs in the country and the determinants of their performance. A cross-sectional data from the 2006 fiscal calendar balance sheet of 26 MFIs is utilized to make the study. An effort is also made to observe the trend of the industry with respect to some indicators by collecting time series data. Consequently, the factor analysis part of the study identified that Deposit mobilized from clients, Number of Active Borrowers, and Gross Loan Portfolio load lugh on one component fortlling tl,e outreach performance dimension of tl,e MFIs in tl,e country. On the other hand, Profit Margin, OSS, Return on Asset and Gross Loan Portfolio to Total Asset Ratio load lugh on the other component fortlung tl,e financial viability dimension of tl,e MFIs. The factor scores also identified tllat ACSI and Ocssco are among tl,e best performing MPIs, whereas, Aggar and Metemamen are among the least performants in the country in every dimension. In order to identify the determinants of tl,e performance of tl,e MFIs, on the two dimensions, a SUR model was fitted on the scores synthesized by tl,e factor analysis anticipating tl,e performances of outreach and sustainability of the MFIs are interrelated. However, tl,e Breusch Pagan test exposed tl,at tl,ere is no evidence to reject tl,e hypotllesis that the errors are not correlated across equations (0"12 = 0). Besides, the significant positive correlation between outreach and sustainability performance dimensions approves that there is no trade-off between the two dimensions in the case of our particular country MFIs. The number/ types of financial services rendered, the number of staffs per branch and their capital are found to determine the outreach performance of the MFIs in the country. It was also noted that capital has an adverse impact on the outreach efforts of the MFIs. The unregulated growth of capital has a negative impact on bodl outreach and sustainability of d,e MFIs dlough it is not significant on the case of sustainability. MFIs in the country tend to focus on d,eir capital for weir loan-able funds rad,er dun on deposit mobilization. Moreover, d,e fmancial viability of We MFIs is found to be highly determined by the average amount of loans disbursed to individuals, the fll1ancial revenue ratio and d,e cost per borrower ratio. The signs of these determinants agree to the expect,~tions set on the study. To the surprise of d,e author, d,e number of branches that MFIs have is found not to affect the performance of the MFIs contrary to d,e expectation set. Intrinsically, one expects Wat We number of branches that d,e MFIs have affects d,e outreach and sustain ability performance of the MFIs significandy, but Wat is not We case in this particular study. | en_US |
| dc.identifier.uri | http://10.90.10.223:4000/handle/123456789/31366 | |
| dc.language.iso | en | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Statistical Analysis | en_US |
| dc.title | Statistical Analysis of the Performance of Micro Finance Institutions: The Case of Ethiopia | en_US |
| dc.type | Thesis | en_US |