A New Index of the Business Environment for Microfinance

This paper describes a new index of the quality of the business environment for microfinance institutions (the Global Microscope on the Microfinance Business Environment). Regressions are used to validate the index by linking it and its subcomponen...

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Main Authors:	Cull, Robert, Navajas, Sergio, Nishida, Ippei, Zeiler, Renate
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING ACCOUNTING STANDARDS ASSET VALUES ASSETS BANK CREDIT BANK POLICY BANKING INSTITUTIONS BANKING REGULATION BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SERVICES BENCHMARK BENCHMARKING COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER SURPLUS CORRUPTION CREDIT BUREAUS CREDIT RATING AGENCIES CREDIT UNION CREDIT UNIONS DEFAULT RATES DEPENDENT DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPUTE RESOLUTION DISPUTE RESOLUTION MECHANISMS DOMESTIC CREDIT DOMESTIC CREDIT RATING DUMMY VARIABLES ECONOMIC GROWTH ECONOMIC OUTCOMES ENTREPRENEURSHIP ENVIRONMENTS FINANCE CORPORATION FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FORBEARANCE GDP GDP DEFLATOR INDIVIDUAL LIABILITY INFLATION INFLATION RATE INSOLVENCY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL FRAMEWORK INSTRUMENT INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT FUND LENDERS LIABILITY LOAN LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN RATES LOAN RATIOS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN SIZE LOAN SIZES MACROECONOMIC CONTEXT MACROECONOMIC VARIABLES MACROECONOMICS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION MICROFINANCE SECTOR NON-PERFORMING LOAN ORGANIZATIONAL FORM OVERHEAD COSTS PER CAPITA INCOME POLITICAL STABILITY PORTFOLIO QUALITY PORTFOLIOS POSITIVE COEFFICIENT POSITIVE COEFFICIENTS PROFITABILITY PROPERTY RIGHTS PROPERTY RIGHTS PROTECTIONS PRUDENTIAL SUPERVISION REGIONAL DUMMIES REGIONAL DUMMY REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY STRUCTURES REORGANIZATION REPAYMENT REPAYMENT RATES RULE OF LAW RURAL BANK RURAL BANKS SMALL LOAN SUPERVISORY AUTHORITY SUPERVISORY FRAMEWORK SUPERVISORY REGIMES TITLE TRADING TRANSPARENCY
Online Access:	http://documents.worldbank.org/curated/en/2013/09/18321957/new-index-business-environment-microfinance http://hdl.handle.net/10986/16843

id	okr-10986-16843
recordtype	oai_dc
spelling	okr-10986-168432021-04-23T14:03:32Z A New Index of the Business Environment for Microfinance Cull, Robert Navajas, Sergio Nishida, Ippei Zeiler, Renate ACCOUNTING ACCOUNTING STANDARDS ASSET VALUES ASSETS BANK CREDIT BANK POLICY BANKING INSTITUTIONS BANKING REGULATION BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SERVICES BENCHMARK BENCHMARKING COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER SURPLUS CORRUPTION CREDIT BUREAUS CREDIT RATING AGENCIES CREDIT UNION CREDIT UNIONS DEFAULT RATES DEPENDENT DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPUTE RESOLUTION DISPUTE RESOLUTION MECHANISMS DOMESTIC CREDIT DOMESTIC CREDIT RATING DUMMY VARIABLES ECONOMIC GROWTH ECONOMIC OUTCOMES ENTREPRENEURSHIP ENVIRONMENTS FINANCE CORPORATION FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FORBEARANCE GDP GDP DEFLATOR INDIVIDUAL LIABILITY INFLATION INFLATION RATE INSOLVENCY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL FRAMEWORK INSTRUMENT INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT FUND LENDERS LIABILITY LOAN LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN RATES LOAN RATIOS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN SIZE LOAN SIZES MACROECONOMIC CONTEXT MACROECONOMIC VARIABLES MACROECONOMICS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION MICROFINANCE SECTOR NON-PERFORMING LOAN ORGANIZATIONAL FORM OVERHEAD COSTS PER CAPITA INCOME POLITICAL STABILITY PORTFOLIO QUALITY PORTFOLIOS POSITIVE COEFFICIENT POSITIVE COEFFICIENTS PROFITABILITY PROPERTY RIGHTS PROPERTY RIGHTS PROTECTIONS PRUDENTIAL SUPERVISION REGIONAL DUMMIES REGIONAL DUMMY REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY STRUCTURES REORGANIZATION REPAYMENT REPAYMENT RATES RULE OF LAW RURAL BANK RURAL BANKS SMALL LOAN SUPERVISORY AUTHORITY SUPERVISORY FRAMEWORK SUPERVISORY REGIMES TITLE TRADING TRANSPARENCY This paper describes a new index of the quality of the business environment for microfinance institutions (the Global Microscope on the Microfinance Business Environment). Regressions are used to validate the index by linking it and its subcomponents to microfinance outcomes. The main findings are that the components of the index related to the supporting institutional framework are strongly linked to measures of microfinance penetration (such as microfinance borrowers as a share of total population). Components related to the framework for regulation and supervision are more strongly linked to outcomes at the microfinance institution level, including loan portfolio quality, financial self-sufficiency, average loan size, and the share of lending to women. Many, but not all, of these relationships are robust to using instrumental variables estimation in which a country's general stringency with respect to financial regulation is used as an instrument for the index and its components. 2014-02-03T21:38:59Z 2014-02-03T21:38:59Z 2013-09 http://documents.worldbank.org/curated/en/2013/09/18321957/new-index-business-environment-microfinance http://hdl.handle.net/10986/16843 English en_US Policy Research Working Paper;No. 6625 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING ACCOUNTING STANDARDS ASSET VALUES ASSETS BANK CREDIT BANK POLICY BANKING INSTITUTIONS BANKING REGULATION BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SERVICES BENCHMARK BENCHMARKING COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER SURPLUS CORRUPTION CREDIT BUREAUS CREDIT RATING AGENCIES CREDIT UNION CREDIT UNIONS DEFAULT RATES DEPENDENT DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPUTE RESOLUTION DISPUTE RESOLUTION MECHANISMS DOMESTIC CREDIT DOMESTIC CREDIT RATING DUMMY VARIABLES ECONOMIC GROWTH ECONOMIC OUTCOMES ENTREPRENEURSHIP ENVIRONMENTS FINANCE CORPORATION FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FORBEARANCE GDP GDP DEFLATOR INDIVIDUAL LIABILITY INFLATION INFLATION RATE INSOLVENCY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL FRAMEWORK INSTRUMENT INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT FUND LENDERS LIABILITY LOAN LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN RATES LOAN RATIOS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN SIZE LOAN SIZES MACROECONOMIC CONTEXT MACROECONOMIC VARIABLES MACROECONOMICS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION MICROFINANCE SECTOR NON-PERFORMING LOAN ORGANIZATIONAL FORM OVERHEAD COSTS PER CAPITA INCOME POLITICAL STABILITY PORTFOLIO QUALITY PORTFOLIOS POSITIVE COEFFICIENT POSITIVE COEFFICIENTS PROFITABILITY PROPERTY RIGHTS PROPERTY RIGHTS PROTECTIONS PRUDENTIAL SUPERVISION REGIONAL DUMMIES REGIONAL DUMMY REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY STRUCTURES REORGANIZATION REPAYMENT REPAYMENT RATES RULE OF LAW RURAL BANK RURAL BANKS SMALL LOAN SUPERVISORY AUTHORITY SUPERVISORY FRAMEWORK SUPERVISORY REGIMES TITLE TRADING TRANSPARENCY
spellingShingle	ACCOUNTING ACCOUNTING STANDARDS ASSET VALUES ASSETS BANK CREDIT BANK POLICY BANKING INSTITUTIONS BANKING REGULATION BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SERVICES BENCHMARK BENCHMARKING COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS CONSUMER SURPLUS CORRUPTION CREDIT BUREAUS CREDIT RATING AGENCIES CREDIT UNION CREDIT UNIONS DEFAULT RATES DEPENDENT DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPUTE RESOLUTION DISPUTE RESOLUTION MECHANISMS DOMESTIC CREDIT DOMESTIC CREDIT RATING DUMMY VARIABLES ECONOMIC GROWTH ECONOMIC OUTCOMES ENTREPRENEURSHIP ENVIRONMENTS FINANCE CORPORATION FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL PERFORMANCE FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FORBEARANCE GDP GDP DEFLATOR INDIVIDUAL LIABILITY INFLATION INFLATION RATE INSOLVENCY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL FRAMEWORK INSTRUMENT INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT FUND LENDERS LIABILITY LOAN LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN RATES LOAN RATIOS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN SIZE LOAN SIZES MACROECONOMIC CONTEXT MACROECONOMIC VARIABLES MACROECONOMICS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE REGULATION MICROFINANCE SECTOR NON-PERFORMING LOAN ORGANIZATIONAL FORM OVERHEAD COSTS PER CAPITA INCOME POLITICAL STABILITY PORTFOLIO QUALITY PORTFOLIOS POSITIVE COEFFICIENT POSITIVE COEFFICIENTS PROFITABILITY PROPERTY RIGHTS PROPERTY RIGHTS PROTECTIONS PRUDENTIAL SUPERVISION REGIONAL DUMMIES REGIONAL DUMMY REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY STRUCTURES REORGANIZATION REPAYMENT REPAYMENT RATES RULE OF LAW RURAL BANK RURAL BANKS SMALL LOAN SUPERVISORY AUTHORITY SUPERVISORY FRAMEWORK SUPERVISORY REGIMES TITLE TRADING TRANSPARENCY Cull, Robert Navajas, Sergio Nishida, Ippei Zeiler, Renate A New Index of the Business Environment for Microfinance
relation	Policy Research Working Paper;No. 6625
description	This paper describes a new index of the quality of the business environment for microfinance institutions (the Global Microscope on the Microfinance Business Environment). Regressions are used to validate the index by linking it and its subcomponents to microfinance outcomes. The main findings are that the components of the index related to the supporting institutional framework are strongly linked to measures of microfinance penetration (such as microfinance borrowers as a share of total population). Components related to the framework for regulation and supervision are more strongly linked to outcomes at the microfinance institution level, including loan portfolio quality, financial self-sufficiency, average loan size, and the share of lending to women. Many, but not all, of these relationships are robust to using instrumental variables estimation in which a country's general stringency with respect to financial regulation is used as an instrument for the index and its components.
format	Publications & Research :: Policy Research Working Paper
author	Cull, Robert Navajas, Sergio Nishida, Ippei Zeiler, Renate
author_facet	Cull, Robert Navajas, Sergio Nishida, Ippei Zeiler, Renate
author_sort	Cull, Robert
title	A New Index of the Business Environment for Microfinance
title_short	A New Index of the Business Environment for Microfinance
title_full	A New Index of the Business Environment for Microfinance
title_fullStr	A New Index of the Business Environment for Microfinance
title_full_unstemmed	A New Index of the Business Environment for Microfinance
title_sort	new index of the business environment for microfinance
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2013/09/18321957/new-index-business-environment-microfinance http://hdl.handle.net/10986/16843
_version_	1764434670528757760

A New Index of the Business Environment for Microfinance

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