The impact of COVID-19 on the efficiency of microfinance institutions

This study investigates the effect of the COVID-19-induced decline in economic activities on the financial and social efficiency of microfinance institutions (MFIs). We find that the pandemic-induced impact decreases the financial efficiency of MFIs; however, the social efficiency of MFIs is increas...

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Autores principales: Zheng, Chen, Zhang, Junru
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2021
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7521446/
http://dx.doi.org/10.1016/j.iref.2020.09.016
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author Zheng, Chen
Zhang, Junru
author_facet Zheng, Chen
Zhang, Junru
author_sort Zheng, Chen
collection PubMed
description This study investigates the effect of the COVID-19-induced decline in economic activities on the financial and social efficiency of microfinance institutions (MFIs). We find that the pandemic-induced impact decreases the financial efficiency of MFIs; however, the social efficiency of MFIs is increased under the impact of COVID-19. To explore potential channels through which efficiency is influenced by the COVID-19 outbreak, we examine the supply and demand side of MFIs’ funding. We find that the lending rate mediates the relationship between the impact of COVID-19 and MFI efficiency, whereas the mediating role of the funding rate is negligible.
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spelling pubmed-75214462020-09-29 The impact of COVID-19 on the efficiency of microfinance institutions Zheng, Chen Zhang, Junru International Review of Economics & Finance Article This study investigates the effect of the COVID-19-induced decline in economic activities on the financial and social efficiency of microfinance institutions (MFIs). We find that the pandemic-induced impact decreases the financial efficiency of MFIs; however, the social efficiency of MFIs is increased under the impact of COVID-19. To explore potential channels through which efficiency is influenced by the COVID-19 outbreak, we examine the supply and demand side of MFIs’ funding. We find that the lending rate mediates the relationship between the impact of COVID-19 and MFI efficiency, whereas the mediating role of the funding rate is negligible. Elsevier Inc. 2021-01 2020-09-28 /pmc/articles/PMC7521446/ http://dx.doi.org/10.1016/j.iref.2020.09.016 Text en © 2020 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Zheng, Chen
Zhang, Junru
The impact of COVID-19 on the efficiency of microfinance institutions
title The impact of COVID-19 on the efficiency of microfinance institutions
title_full The impact of COVID-19 on the efficiency of microfinance institutions
title_fullStr The impact of COVID-19 on the efficiency of microfinance institutions
title_full_unstemmed The impact of COVID-19 on the efficiency of microfinance institutions
title_short The impact of COVID-19 on the efficiency of microfinance institutions
title_sort impact of covid-19 on the efficiency of microfinance institutions
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7521446/
http://dx.doi.org/10.1016/j.iref.2020.09.016
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