Does Regulatory Supervision Curtail Microfinance Profitability and Outreach?

Regulation allows microfinance institutions to take deposits and expand their banking functions, but complying with regulation can be costly. We examine implications for institutions' profitability and their outreach to small-scale borrowers and women, using a newly-constructed dataset on 245 l...

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Main Authors:	Cull, Robert, Demirguc-Kunt, Asli, Morduch, Jonathan
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 Economics of Gender Non-labor Discrimination J160 Economics of Regulation L510 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160
Online Access:	http://hdl.handle.net/10986/5555

id	okr-10986-5555
recordtype	oai_dc
spelling	okr-10986-55552021-04-23T14:02:22Z Does Regulatory Supervision Curtail Microfinance Profitability and Outreach? Cull, Robert Demirguc-Kunt, Asli Morduch, Jonathan Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 Economics of Gender Non-labor Discrimination J160 Economics of Regulation L510 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Regulation allows microfinance institutions to take deposits and expand their banking functions, but complying with regulation can be costly. We examine implications for institutions' profitability and their outreach to small-scale borrowers and women, using a newly-constructed dataset on 245 leading institutions. Controlling for the non-random assignment of supervision via treatment effects and instrumental variables regressions, we find evidence consistent with the hypothesis that profit-oriented microfinance institutions respond to supervision by maintaining profit rates but curtailing outreach to women and customers that are costly to reach. Institutions with a weaker commercial focus instead tend to reduce profitability but maintain outreach. 2012-03-30T07:33:24Z 2012-03-30T07:33:24Z 2011 Journal Article World Development 0305750X http://hdl.handle.net/10986/5555 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 Economics of Gender Non-labor Discrimination J160 Economics of Regulation L510 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160
spellingShingle	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 Economics of Gender Non-labor Discrimination J160 Economics of Regulation L510 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Cull, Robert Demirguc-Kunt, Asli Morduch, Jonathan Does Regulatory Supervision Curtail Microfinance Profitability and Outreach?
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Regulation allows microfinance institutions to take deposits and expand their banking functions, but complying with regulation can be costly. We examine implications for institutions' profitability and their outreach to small-scale borrowers and women, using a newly-constructed dataset on 245 leading institutions. Controlling for the non-random assignment of supervision via treatment effects and instrumental variables regressions, we find evidence consistent with the hypothesis that profit-oriented microfinance institutions respond to supervision by maintaining profit rates but curtailing outreach to women and customers that are costly to reach. Institutions with a weaker commercial focus instead tend to reduce profitability but maintain outreach.
format	Journal Article
author	Cull, Robert Demirguc-Kunt, Asli Morduch, Jonathan
author_facet	Cull, Robert Demirguc-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	2012
url	http://hdl.handle.net/10986/5555
_version_	1764395472416407552

Does Regulatory Supervision Curtail Microfinance Profitability and Outreach?

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