Impact of Loan Portfolio Characteristics on Microfinance Institutions: The Case of Morocco

2024-02-12 07:48:16 Viewed: 1146 Downloads: 354
  • Impact of Loan Portfolio Characteristics on Microfinance Institutions: The Case of Morocco

      Tahar Harkat, Samir Aguenaou, Jawad Abrache and Zakaria Ez-zarzari

     Publisher: African Review of Economics and Finance

    Pub: 2024-02-12 07:48:16

    Email it to me(Requires login) Download this PDF file
  • This paper identifies how loan portfolio characteristics impact the financial performance and sustainability of Moroccan microfinance institutions (MFIs). Using the Mix Market dataset, fixed and random panel regression models were adopted to analyze six Moroccan MFIs between 2003 and 2018. These models analyze the impact of loan portfolio size, type, risk, return, management effectiveness, write-offs, and recoveries variables on MFIs’ return on asset (ROA), return on equity (ROE), and operational self-sufficiency (OSS). As a set of proxy variables is used to measure each loan portfolio characteristic, empirical findings indicate that the nature of the relationships between these variables and the dependent variables varies. Findings indicate that MFIs’ profitability and sustainability are positively impacted by many variables that include the number of outstanding loans, gross loan portfolio for enterprise financing, and portfolio at risk 90. Results also reveal that the dependent variables are negatively impacted by variables, which include write-offs, the number of borrowers per staff member, and the number of loans per loan officer.

    Email it to me(Requires login) Download this PDF file
  • Email it to me(Requires login) Download this PDF file

  • References are not ready for this file yet, please refer to reference from the PDF file

  • Keywords

    Microfinance institutions, Panel Regression, Loan Portfolio, Morocco


Other Informations

Top