The Commercialisation of microfinance institutions (MFIs) and mission drift: are they sides of the same coin?
DOI:
https://doi.org/10.59051/joaf.v13i1.549Keywords:
Microfinance, Commercialisation,, Mission drift, PerformanceAbstract
Objective: This article aims to examine the dimensions of commercialization of the MFI sector that lead to core mission drift in microfinance.
Method: to achieve this objective, correlation tests are used as well as the logit panel method. The estimates are made on a sample of 1466 MFIs extracted from MIX over the period 2007-2014.
Results: the results show no link between Commercialization and mission drift in global MFI markets (America, Asia, Europe, Africa). This type of drift is only observed in the Middle East, which represents only 3% of the sample.
Originality/relevance: compared to previous studies, this article aims to offer MFI rating agencies another look at poverty. As a multifaceted phenomenon, its eradication requires sustainable financial inclusion approaches. These could not have been achieved in our context through the grant contributions advocated by welfarists.
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