Determinants of Financial Self Sufficiency in Microfinance Institutions: A study of Pakistan, India and Bangladesh

Abstract

This study is an attempt to identify the factors that are affecting the financial self-sufficiency of MFIs in Pakistan, India and Bangladesh. Panel data on MFIs of these countries for the year 2011 to 2015 is used. This yielded balanced panel data for thirty-two MFIs, comprising of 161 observations. Our results shows that Size of MFI and Loan Portfolio to total assets has positive impact while Portfolio at Risk, Breadth of outreach, Management inefficiency and operating cost ratio has negative impact on financial self-sufficiency.