Regulation, Outreach and Sustainability of MFIs in SSA: A Multilevel Analysis

Nyanzu, Frederick and Atta Peprah, James (2016): Regulation, Outreach and Sustainability of MFIs in SSA: A Multilevel Analysis.

Abstract

This paper brings together issues lingering around regulation in microfinance institutions by examining the effects of regulation and country effect. Using an unbalanced panel data from 2002 to 2012 for 30 countries in Sub-Saharan Africa, and employing multilevel estimation technique, the study reveals that regulation helps to improve the sustainability and breadth of outreach but not depth of outreach. Also country effect plays significant role in MFIs activities. It is imperative for regulatory authorities to devise strategies to strengthen MFIs financial position as well as ensuring enabling environment that will enhance the achievement of microfinance social objectives.

• Item Type: MPRA Paper
• Language: English
• Keywords: Regulation; Microfinance Institutions; Profitability; Outreach; Sustainability
• Subjects: G - Financial Economics > G0 - General > G00 - General

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