Pernia, Ernesto M.Sadongdong, Adrian B.Vital, Marianne Joy A.2025-01-222025-01-222007-04-04https://selib.upd.edu.ph/etdir/handle/123456789/4186This study addresses the question: does the transformation of a microfinance NGO into a commercialized financial institution affect positively its sustainability and, more importantly, its outreach? Using data taken from the financial statements of the four large-scale microfinance NGOs in the Philippines, we find that transformation effectively increases the sustainability of the NGOs through more cost-effective operations, thus greater capacity to serve poor clients (borrowers). This seems evident by comparing the performance of transformed NGOs vis-a-vis the untransformed ones. Regression analyses substantiate the positive aspects of sustainability and capacity for broader outreach. However, transformation by itself is not a guarantee for maximum outreach to the poor. Commercialization must be accompanied by an environment conducive to the micro finance industry's stability and growth.enCommercializationMircrofinanceFinanceFinancial industryFinancial institutionThesis