Breadth of Outreach and Accountability Of Microfinance Institutions (MFIS) In South Asian Region

Abstract

The purpose of the study is to examine the breadth of outreach and argue comparison of outreach level of micro.finance institutions in South Asia. Using secondery data source of Micro.finance Information eXchange (MIX) we have employedquantitative research approach. This study useddescriptive statistics.financial ratio analysis, econometric technique and multiple regression analysis on the various outreach indicators standardized by the Consultative Group to Assist the Poor ( CGAP ). Results of the study exposed that gross loan portfolio has significant positive relation with the breadth of outreach. Conversely average loan balance per borrower per GNI per capital and average outstanding balance have significant negative relation to the dependent variable. On the other hand, yield on gross loan portfolio and size of MF/ have identified as insignificant positive effect to the number of active borrower. Furthermore operational selfsufficiency has insignificant negative effect to the dependent variable of the study. Eventually the study found negative trade-off between profitability and outreach. However interest rate, ownership and board composition issue suggested for further study.