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  1. Home
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Browsing by Author "Quines, Mariel Angeli R."

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    Default risk in microfinance: an analysis of the institutional constraints of microfinance organization in the Philippines
    (2013-10) Crisostomo, Ma. Charmaine R.; Quines, Mariel Angeli R.; Ducanes, Geoffrey M.; Reside, Renato Jr. E.
    Microfinance serves to alleviate poverty by making credit available for the lower income members of the society. As microfinance continues to grow and develop in the recent years, more and more commercial banks and traditional microfinance institutions emerge, with goals of poverty alleviation and self-sustainability. In line with this, our study aims to determine the institutional factors that significantly affect the default risks faced by microfinance organizations. Using longitudinal data from several micro finance organizations in the country, we used a fixed effects regression and a random effects regression to determine the impact of institutional structures of microfinance organizations with default risk. This study has identified that the institutional structures that are associated with lower default risks are market-based structures that make microfinance organizations more competitive in the financial system. Further analysis also showed that the certain social goals in microfinance are not associated with increased default risk of micro finance organizations.

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