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An Exploratory Study Of The Performance Of Microfinancing Institutions Using The Balanced Scorecard Approach, Gemunu Nanayakkara, Errol Iselin
An Exploratory Study Of The Performance Of Microfinancing Institutions Using The Balanced Scorecard Approach, Gemunu Nanayakkara, Errol Iselin
Errol Iselin
More than 3,000 microfinancing institutions (MFIs) in developing countries provide financial assistance to the needy poor who are denied access to institutional credit from other sources. This study’s motivation comes from the importance of MFIs and the lack of knowledge about them. Adopting the balanced scorecard (BSC) model, this exploratory study investigates the critical performance measures that MFIs need to emphasize in their performance reporting to drive high performance. The study first argues that four dimensions (sustainability, increasing the outreach, depth of outreach, and portfolio at risk) are needed to measure the performance of MFIs, and then analyzes the impact …