Microfinance institutions on the remittances market: do money transfer activities generate deposits?

Ritha Sukadi Mata
Savings and Development Vol. 35(2011), No. 1, pp. 75-95

Microfinance institutions (MFIs) are expected to succeed in transforming migrants’ remittances into deposits. Based on an original database including 114 MFIs from Africa, South Asia, Latin America and the Caribbean, and East Asia and the Pacific, this paper empirically examines the occurrence of this expected success. It tests whether MFIs operating on the remittances market capture more deposits than others. The results exhibit a positive and significant effect of the money transfer activity on the amounts of deposits in MFIs.

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Issue: 2011 XXXV 1
Contributors: Sukadi Mata, Ritha   
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