Operational Performance of Microfinance Institutions: The Case of Lower-Middle Income Countries in Asia

Abstract

The present paper examines the operational performance of microfinance institutions (MFIs) in some Asia’s lower-middle income economies for the period of 2014–2017. The Microfinance Information Exchange (MIX) Market dataset has been collected from Global Outreach and finance benchmark reports, with the Bayesian approach applied for data analysis. On the basis of specific evaluations, the paper suggests ways to improve the effectiveness of MFIs in such countries with the aim that these organizations will reach a vast range of credit clients and obtain their financial sustainability.