Download or read book An Exploration Into the Double Bottom Line Commitments of Indian Microfinance Institutions written by A. P. Pati and published by . This book was released on 2016 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance industry has emerged from a small domain institution to a broad tool for social development, as many success stories reveal its true potential for serving the society. Nevertheless, like any financial institution it has to fuel its needs in order to sustain its developmental activities. This is where the notion of double bottom line surfaces that adheres to a win-win situation for the microfinance institutions as well as the clients to whom they are serving. However, in reality there persist other unprincipled grounds that hamper this thought and diverges the activities of the MFIs towards attaining better and higher revenues leading to a trade-off. Our paper tries to objectify the presence of this as to what extent the double bottom line is realised in the MFIs of India. Further, we also try to find if there is a trade-off between financial performance and social performance. We have used a dataset comprising all the Indian MFIs reported online at MIX Market for the period from 2009 to 2013. The analysis is carried out on various indicators that resemble the performance and efficiency of the MFIs. The evidences suggest that Indian MFIs are adhering to the notion of double bottom line and the scale of outreach in terms of number of borrowers mainly guides their objectives.
Download or read book A Probe Into the Double Bottom Line Commitments of Indian Micro Finance Institutions written by Prasenjit Roy and published by . This book was released on 2017 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: As an emerging area of financial services microfinance has many success stories that reveal the huge potential for serving the society. However, like any other financial organization micro finance institutions (MFIs) have to survive in addition to fund their needs and wants. The idea of double bottom line emerges from this domain where a win-win situation would be attained by the microfinance for themselves as well as the clients. Yet, in reality, there are other setbacks associated with it that show its dark side. In this paper, we try to explore the presence of this and the extent to which the double bottom line is met by the MFIs of India. Further, if this is not met whether that adheres to a trade-off between financial performance and social performance. We have used a dataset comprising all the Indian MFIs reported in "mixmarket" for the period from 2009 to 2013. The analysis is carried on various indicators that resemble the performance and efficiency of the MFIs. In addition to social performance and financial performance indicators, our study also includes financial structure indicators, revenue indicators, and efficiency ratios to gather a better inference into the operations of the MFIs. The gross loan portfolio (GLP) of the industry shows 12.41% growth whereas the average loan size (ALS) shows a 7.37% growth indicating a possible trade-off. The preliminary evidence suggest that there might be ownership influence in the operations of the MFIs where trade-off are likely observed in non-NGO MFIs in contrast to NGO-MFIs.
Download or read book Institutional Logics and the Double Bottom Line written by Daniel Amanze Anyanwu and published by . This book was released on 2020 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance institutions (MFIs) serve a social mission, while also having to focus on financial sustainability. Microfinance emerged as an alternative to traditional aid to the poor and aims to help alleviate poverty through providing them with financial services. MFIs can be self-sustainable and even profitable through income generating activities. This twin goal of commercial viability and social mission has generated much scholarly interest in the competition between two seemingly incompatible logics of action. Assumptions about the incompatibility of profit and mission motives have dominated the literature and led to a neglect of how some MFIs may be successful in integrating both logics. This study elaborates on the specific actions and processes Chikum MFB Ltd, - a microfinance bank located in Owerri, Nigeria took to balance 'nonprofit' and 'for-profit' institutional logics. The findings reveal that the leadership's commitment to integrated logics enabled the deployment of the required resources to meet its goals. Commitment to founding mission provided guidance for management decisions including workforce composition, products offerings and pricing and the operation of multiple outposts. Also, its integration of financial with nonfinancial services contributed to financial sustainability, since microcredit and its associated revenue is only one of several revenue streams. By adopting a case study approach, this qualitative study engaged in an in-depth investigation on why and how the bank engaged in sustainable microfinance practice. The interpretive approach was deployed to explore, seek understanding and interpret meaning from the interview transcripts and reviewed documents. Thematic analysis revealed five key themes that described the bank's goal attainment strategies: shareholders' avowed commitment to founding mission; human asset development; pro-active poor products and services offering; innovative/strategic products pricing; and institutional competitive advantage. The interrelated themes also constituted the framework for the study's findings. The findings underscore the need for commitment to the MFI's organizational logics, for innovative and integrated approach to the needs of microfinance clients and to incorporate other revenue mechanisms to achieve financial sustainability. This study compliments the call to broaden the search for the double bottom-line objective to focus on understanding the effectiveness of different types of MFIs operating in different contexts.
Download or read book Mission Drift in Indian Micro Finance Institutions an Empirical Study written by Roy Prasenjit and published by . This book was released on 2023-01-12 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Introduction Microfinance has emerged as a tool for creating a financially inclusive society. Ever since the formal banking system showed limited concern towards reaching the poor on the premise that they were non-bankable. Initially, microfinance institutions (MFIs) started within the domain of non-governmental organizations (NGOs). With the passage of time, they expanded to more professional setups which brought competition and refinement in their operations. After substantial growth in the form of outreach their sustainability came to the forefront where along with social performance, financial performance was given equal importance. This led to the emergence of a double bottom line. However, an imbalance between the two, with more focus on financial performance led to the mission drift in the MFIs. The microfinance movement began decades ago which brought about a considerable change to the economic scenario of the poor. MFIs have been highly regarded for helping the poor. Poverty is a multifarious dilemma that causes impoverishment. It has various complexities that need to be eliminated from the root for all-around development. Ever since the dawn of civilization, various social and economic inequalities have occurred and contributed to making an unequal and poverty-driven society. The conventional forms of credit bridge the gap between the lenders and the borrowers which revolutionized trade and commerce
Download or read book Meeting the Double Bottom Line written by Heather Montgomery and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Is it possible for microfinance institutions to simultaneously pursue profits and poverty reductionlsquo; This study explores this question by analyzing the impact of Khushhali Bank, the largest retail microfinance bank in Pakistan. Khushhali Bank has shown that it can scale up outreach while remaining focused ont eh core goals of operational and financial sustainability. Using primary data collected from over 2,000 rural and urban households across Pakistan, the study examines whether the bank also had an impact on economic or social measures of poverty, including empowerment of poor women, or income generating activities run by those households. The poorest of the poor - those subsisting on less than half the official poverty line - are demonstrated to have benefitted the most from the program.
Download or read book Sustainability of Indian Microfinance Institutions written by Nadiya Marakkath and published by . This book was released on 2013-11-30 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Role of Incentive Mix to Prevent Mission Drift in Microfinance written by Mohammad Zainuddin and published by . This book was released on 2018 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance institutions are often considered hybrid organizations with 'double bottom line' as they integrate both social and commercial aims in the organizational core. This joint pursuit of social impact and financial sustainability not only creates tensions and dilemmas at the institutional level, but also introduces the possibilities of mission drift -- forsaking social mission to achieve profitability. A number of microfinance organizations have shifted to prioritize their business venture over social welfare in search of increased revenues. Hence, sustaining commitments to both objectives and countering pressure to compromise on social mission constitute a key management challenge. Microfinance managers need to simultaneously demonstrate both social and economic competence. In addition, the constant involvement and commitment of employees, particularly loan officers, need to be ensured through appropriate motivation mechanisms. Managers must adequately maintain and reinforce the motivated workforce through an enriched incentive mix. In the microfinance sector, the incentive systems set up for employees can potentially contribute to mission drift. Monetary incentives based on financial criteria may lead employees to grant excessive loans and push clients into over-indebtedness. Moreover, prosocial motivation of loan officers can be crowded-out by financial incentives. The size of the incentives can also have an impact as the crowding-out effect has been found when the financial incentive is large, and in some cases, when it is small. However, discarding the financial incentives altogether is not an option as it would not only make the job less attractive but may also put the growth and sustainability of the organization at risk. Therefore, a right mix among different categories of incentives, along with a proper balance between extrinsic and intrinsic incentives, is crucial in order to prevent the risk of mission drift. This empirical study, which is designed as a sequential explanatory research, is undertaken to critically examine the incentive schemes management use to motivate microfinance employees to deal with the social-financial dilemma. Besides practical significance, the research may potentially contribute to literatures of both microfinance and employee motivation.
Download or read book Microfinance Institutions written by R. Mersland and published by Springer. This book was released on 2015-12-11 with total page 329 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research on MFI performance is still in its infancy. MFIs are hybrid organizations with dual objectives. Performance studies in microfinance are therefore less straightforward compared to performance studies in traditional banking research. This book contains new MFI performance research by top scholars from across the globe.
Download or read book Transforming Microfinance Institutions written by Joanna Ledgerwood and published by World Bank Publications. This book was released on 2006-08-30 with total page 570 pages. Available in PDF, EPUB and Kindle. Book excerpt: In response to a clear need by low-income people to gain access to the full range of financial services including savings, a growing number of microfinance NGOs are seeking guidelines to transform from credit-focused microfinance organizations to regulated deposit-taking financial intermediaries. In response to this trend, this book presents a practical 'how-to' manual for MFIs to develop the capacity to become licensed and regulated to mobilize deposits from the public. 'Transforming Microfinance Institutions' provides guidelines for regulators to license and regulate microfinance providers, and for transforming MFIs to meet the demands of two major new stakeholders regulators and shareholders. As such, it focuses on developing the capacity of NGO MFIs to mobilize and intermediate voluntary savings. Drawing from worldwide experience, it outlines how to manage the transformation process and address major strategic and operational issues inherent in transformation including competitive positioning, business planning, accessing capital and shareholders, and how to 'transform' the MFI's human resources, financial management, MIS, internal controls, and branch operations. Case studies then provide examples of developing a new regulatory tier for microfinance, and how a Ugandan NGO transformed to become a licensed financial intermediary. This book will be invaluable to regulators and microfinance NGOs contemplating institutional transformation and will be of tremendous use to donors and technical support agencies supporting MFIs in their transformation.
Download or read book The Political Economy of Financial Regulation written by Emilios Avgouleas and published by Cambridge University Press. This book was released on 2019-01-31 with total page 531 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the law and policy of financial regulation using a combination of conceptual analysis and strong empirical research.
Download or read book The Triangle of Microfinance written by Manfred Zeller and published by Intl Food Policy Res Inst. This book was released on 2002-01-01 with total page 426 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the 1980s when the microfinance revolution began, much has been accomplished, but the field became more refined in the 1990s as a result of shifts in paradigms, strategies, and development practices. This volume addresses the three policy objectives that now occupy those who wish to use credit as a development tool: financial sustainability of microfinance institutions, outreach to the poor, and welfare impact. Inevitable tradeoffs exist among these objectives, and the book advances an analytical framework that assists students of and experts in microfinance to identify the tradeoffs and synergies at the institutional level and in the policy environment. The book features a wealth of empirical data and innovative analytical studies, and critically discusses the role of public support for microfinance institutions (MFIs) in light of the social costs and benefits generated by such financial systems. The book is organized into five parts. The first discusses the demand for and access to financial services by the poor, emphasizing that demand-oriented, pro-poor financial services are crucial in reaching the poor. The second is concerned with two of the criteria used to evaluate MFIsoutreach and financial sustainability. The third features innovative econometric studies seeking to evaluate the impact of MFIs at the household level. The fourth looks at the role of both public- and private-sector institutions in developing sustainable financial systems. And the fifth summarizes implications for policy and research. Given the lack of sound, empirical literature on microfinance, this volume is sure to advance knowledge and research methodology in the field.
Download or read book Microfinance Handbook written by Joanna Ledgerwood and published by World Bank Publications. This book was released on 1998-12-01 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of the 'Microfinance Handbook' is to bring together in a single source guiding principles and tools that will promote sustainable microfinance and create viable institutions.
Download or read book Research Anthology on Human Resource Practices for the Modern Workforce written by Management Association, Information Resources and published by IGI Global. This book was released on 2021-12-30 with total page 2224 pages. Available in PDF, EPUB and Kindle. Book excerpt: Human resource departments have been a crucial part of business practices for decades and particularly in modern times as professionals deal with multigenerational workers, diversity initiatives, and global health and economic crises. There is a necessity for human resource departments to change as well to adapt to new societal perspectives, technology, and business practices. It is important for human resource managers to keep up to date with all emerging human resource practices in order to support successful and productive organizations. The Research Anthology on Human Resource Practices for the Modern Workforce presents a dynamic and diverse collection of global practices for human resource departments. This anthology discusses the emerging practices as well as modern technologies and initiatives that affect the way human resources must be conducted. Covering topics such as machine learning, organizational culture, and social entrepreneurship, this book is an excellent resource for human resource employees, managers, CEOs, employees, business students and professors, researchers, and academicians.
Download or read book Microfinance India written by N. Srinivasan and published by SAGE Publications Pvt. Limited. This book was released on 2011-12-28 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance India: State of the Sector Report 2011 presents the growth of the microfinance sector in India in its entirety. It offers in-depth, well-researched and thoroughly analyzed evidence on how the sector has made an impact at various levels of the economy and society. The report collects information from authoritative sources, studies and reports on the sector and field studies on specific developments of interests. It also brings perspectives from key policy makers through exclusive interviews. Highlighting on more topical themes, this year's report begins with an overview of the microfinance sector, which faced significant problems during 2010–11. It then evaluates the performances of the SHG and MFI models and discusses thematic issues such as social performance management and financial inclusion in detail.
Download or read book Microfinance India written by N Srinivasan and published by SAGE Publications Pvt. Limited. This book was released on 2009-11-20 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This series of annual reports on the microfinance sector in India which seeks to document developments, clarify issues, publicize studies, stimulate research, identify policy choices, generate understanding, and enhance support for the sector. It highlights recent developments under each of the two main models of microfinance in India – the SHG and MFI models. The book highlights recent developments in Self Help Groups (SHGs) and SHG Bank Linkage Programme (SBLPs), and focuses on microfinance with regard to the investment scenario in India.
Download or read book Financing Micro Small and Medium Enterprises written by and published by World Bank Publications. This book was released on 2008-01-01 with total page 135 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study evaluates the effectiveness of IFC's strategic priority of private sector development in frontier countries (high-risk and/or low-income) by supporting micro, small, and medium enterprises (MSMEs) during fiscal years (FY)1994-2006. IFC has channeled its support to MSME's by: i) indirect financing through financial intermediaries, and ii) by indirect institution-building support via specialized regional small and medium enterprise (SME) development facilities. This evaluation analyzes IFC's development results and provides recommendations on how IFC's performance can be improved in this area going forward.
Download or read book ESG and Responsible Institutional Investing Around the World A Critical Review written by Pedro Matos and published by CFA Institute Research Foundation. This book was released on 2020-05-29 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: This survey examines the vibrant academic literature on environmental, social, and governance (ESG) investing. While there is no consensus on the exact list of ESG issues, responsible investors increasingly assess stocks in their portfolios based on nonfinancial data on environmental impact (e.g., carbon emissions), social impact (e.g., employee satisfaction), and governance attributes (e.g., board structure). The objective is to reduce exposure to investments that pose greater ESG risks or to influence companies to become more sustainable. One active area of research at present involves assessing portfolio risk exposure to climate change. This literature review focuses on institutional investors, which have grown in importance such that they have now become the largest holders of shares in public companies globally. Historically, institutional investors tended to concentrate their ESG efforts mostly on corporate governance (the “G” in ESG). These efforts included seeking to eliminate provisions that restrict shareholder rights and enhance managerial power, such as staggered boards, supermajority rules, golden parachutes, and poison pills. Highlights from this section: · There is no consensus on the exact list of ESG issues and their materiality. · The ESG issue that gets the most attention from institutional investors is climate change, in particular their portfolio companies’ exposure to carbon risk and “stranded assets.” · Investors should be positioning themselves for increased regulation, with the regulatory agenda being more ambitious in the European Union than in the United States. Readers might come away from this survey skeptical about the potential for ESG investing to affect positive change. I prefer to characterize the current state of the literature as having a “healthy dose of skepticism,” with much more remaining to be explored. Here, I hope the reader comes away with a call to action. For the industry practitioner, I believe that the investment industry should strive to achieve positive societal goals. CFA Institute provides an exemplary case in its Future of Finance series (www.cfainstitute.org/research/future-finance). For the academic community, I suggest we ramp up research aimed at tackling some of the open questions around the pressing societal goals of ESG investing. I am optimistic that practitioners and academics will identify meaningful ways to better harness the power of global financial markets for addressing the pressing ESG issues facing our society.
