Financial and social performance of Senegalese MFIs: a comparative analysis of the effects of a default rate increase

Ndiouma Ndour and Eric Paget-Blanc
Savings and Development Vol. 38(2014), No. 1, pp. 45-67

The article focuses on the quality of the loan portfolio of microfinance institutions (MFIs) in Senegal. The study was designed to assess the effect of the increase in non-performing loans (NPLs) on financial and social performance of MFIs and to specify appropriate repayment policies in deteriorating loan portfolios. Data for the period (1980-2010) were collected from Senegalese MFIs and analyzed using VAR models and impulse functions. The results show a significant level of influence of financial variables as opposed to social variables, indicating that the financial dimension remains decisive in political management credit risk of MFIs in Senegal.

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Issue: 2014 XXXVIII 1
Contributors: Ndour, Ndiouma   Paget-Blanc, Eric   
Keywords: , , ,