Determinants of Micro Finance Bank Stability in Pakistan

Abstract

In developing countries like Pakistan MF is anticipated to play a vital part in lowering poverty and raising the standard of living of people. The performance of MF is a key to the development of society and economy of Pakistan. A sustainable MF structure in a country can be helpful in developing small scale businesses. Success of MF in Bangladesh and other parts of the world is a signal that the field has major role in changing lives of low people. Despite the importance of the field of micro finance in a country like Pakistan, it has been explored rarely by academicians. The study is aiming to investigate the fiscal viability of MF banks in Pakistan. MF Banks are institutions that provide micro fiscal assistance to people. The study is based on the MF banks in Pakistan. Performance of MF can be judged through various dimensions. The study is limited to the analysis of fiscal sustainability of MF. The scope of study is limited to the MF banks in Pakistan. The time period of the analysis is from 2010 to 2017 due to availability of the data for this time period.