COMPETITION IN MICROFINANCE INSTITUTION: A LITERATURE REVIEW
DOI:
https://doi.org/10.31933/dijemss.v1i3.165Keywords:
Competition, Microfinance Institution, Social Outreach, SustainabilityAbstract
This research aims to investigate competition in Microfinance Institution (MFI). MFI is an institution that serves unbankable people through increasing access to finance. Though it faces a challenging situation, many organizations interested in investing in MFI, this condition builds a competitive situation among MFI. Meanwhile, MFI offers diversified products to increase their revenue because they are facing a more intense situation. This research uses a literature survey to find out a journey regarding competition in MFI.
References
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Assefa, E., Hermes, N., & Meesters, A. (2013). Competition and the performance of Microfinance institutions. Applied Financial Economics, 23(9), 767–782. https://doi.org/10.1080/09603107.2012.754541
Azmi, W., Ali, M., Arshad, S., & Rizvi, S. A. R. (2019). Intricacies of competition, stability, and diversification: Evidence from dual banking economies. Economic Modelling, 83(February), 111–126. https://doi.org/10.1016/j.econmod.2019.02.002
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Baquero, G., Hamadi, M., & Heinen, A. (2018). Competition, Loan Rates, and Information Dispersion in Nonprofit and For-Profit Microcredit Markets. Journal of Money, Credit and Banking, 50(5), 893–937. https://doi.org/10.1111/jmcb.12472
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Berger, A. N., Hasan, I., Klapper, L. F., & Bank, T. W. (2004). Further Evidence on the Link between Finance and Growth: An International Analysis of Community Banking and Economic Performance. Journal of Financial Services Research, 25(2), 169–202. Retrieved from https://remote-lib.ui.ac.id:2069/content/pdf/10.1023%2FB%3AFINA.0000020659.33510.b7.pdf
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Bikker, J. A., Shaffer, S., & Spierdijk, L. (2012). Assessing competition with the panzar-rosse model: The role of scale, costs, and equilibrium. Review of Economics and Statistics, 94(4), 1025–1044. https://doi.org/10.1162/REST_a_00210
Boone, J. (2008). A New Way to Measure Competition. The Economic Journal, 118(531), 1245–1261.
Burgess, R., & Pande, R. (2005). Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment. American Economic Review, 95(3), 780–795. https://doi.org/10.1257/0002828054201242
Claessens, S., & Laeven, L. (2004). What Drives Bank Competition? Some International Evidence. Journal of Money, Credit and Banking, 36(3), 563–583.
Cull, R., Demirgüç-kunt, A., & Morduch, J. (2009). Banks and Microbanks.
Cull, R., Demirgüç-Kunt, A., & Morduch, J. (2009). Microfinance meets the market. Journal of Economic Perspectives, 23(1), 167–192. https://doi.org/10.1257/jep.23.1.167
Cyree, K. B., & Spurlin, W. P. (2012). The effects of big-bank presence on the profit efficiency of small banks in rural markets. Journal of Banking and Finance, 36(9), 2593–2603. https://doi.org/10.1016/j.jbankfin.2012.05.015
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González, F. (2009). Determinants of Bank-Market Structure?: Efficiency and Political Economy Variables. Journal of Money, Credit and Banking, 41(4), 735–754.
Guha, B., & Roy, P. (2013). Micro- finance competition?: Motivated micro-lenders , double-dipping and default. Jornal of Development Economics, 105, 86–102.
Gupta, N., & Mirchandani, A. (2019). Corporate governance and performance of microfinance institutions: recent global evidences. Journal of Management and Governance, (0123456789). https://doi.org/10.1007/s10997-018-9446-4
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Kar, A. K., & Bali Swain, R. (2018). Competition, Performance and Portfolio Quality in Microfinance Markets. European Journal of Development Research, 30(5), 842–870. https://doi.org/10.1057/s41287-018-0135-6
Kasman, A., & Carvallo, O. (2014). Financial Stability, Competition and Efficiency. Journal of Applied Economics, 17(2), 301–324. https://doi.org/10.1016/S1514-0326(14)60014-3
Martín-Oliver, A., & Salas-Fumás, V. (2008). The output and profit contribution of information technology and advertising investments in banks. Journal of Financial Intermediation, 17(2), 229–255. https://doi.org/10.1016/j.jfi.2007.10.001
Mason, E. S. (1939). Price and Production Policies of Large-Scale Enterprise. The American Economic Review (Vol. 29). Retrieved from https://remote-lib.ui.ac.id:2094/stable/pdf/1806955.pdf?refreqid=excelsior%3A78a226b8c1fe96a5bb4a40837db550f8
McIntosh, C., Dejanvry, A., & Sadoulet, E. (2005). How Rising Competition among Microfinance Institutions Affects Incumbent Lenders. The Economic Journal, 115(506), 987–1004.
Mcintosh, C., & Wydick, B. (2005). Competition and microfinance. Journal of Development Economics, 78, 271–298. https://doi.org/10.1016/j.jdeveco.2004.11.008
Mersland, R. (2011). The governance of non-profit micro finance institutions: Lessons from history. Journal of Management and Governance, 15(3), 327–348. https://doi.org/10.1007/s10997-009-9116-7
Meslier-Crouzille, C., Nys, E., & Sauviat, A. (2011). Contribution of Rural Banks to Regional Economic Development: Evidence from the Philippines. Regional Studies, 46(6), 775–791. https://doi.org/10.1080/00343404.2010.529117
Meyer, P. A. (1967). Price Discrimination, Regional Loan Rates, and the Structure of the Banking Industry Author. The Journal of Finance, 22(1), 37–48. Retrieved from https://remote-lib.ui.ac.id:2094/stable/pdf/2977298.pdf?refreqid=excelsior%3A43c134d67cbea56713c6f24c184505b4
Navajas, S., Conning, J., & Gonzalez-Vega, C. (2003). Lending technologies, competition and consolidation in the market for microfinance in Bolivia. Journal of International Development, 15(6), 747–770. https://doi.org/10.1002/jid.1024
Phan, H. T., Anwar, S., Alexander, W. R. J., & Phan, H. T. M. (2019). Competition, efficiency and stability: An empirical study of East Asian commercial banks. North American Journal of Economics and Finance, 50(October 2018), 100990. https://doi.org/10.1016/j.najef.2019.100990
Shaffer, S. (2004). Patterns of competition in banking. Journal of Economics and Business, 56(4), 287–313. https://doi.org/10.1016/j.jeconbus.2003.10.003
Shaffer, S., & Srinivasan, S. (2002). Structure-pricing linkages among singlemarket banks, controlling for credit quality. Applied Economics Letters, 9(10), 653–656. https://doi.org/10.1080/13504850110115159
Tabak, B. M., Gomes, G. M. R., & Medeiros, S. (2015). The impact of market power at bank level in risk-taking?: The Brazilian case. International Review of Financial Analysis, 40, 154–165. https://doi.org/10.1016/j.irfa.2015.05.014
VanHoose, D. (2017). The Industrial Organization of Banking. The Industrial Organization of Banking. https://doi.org/10.1007/978-3-662-54326-9
Vogelgesang, U. (2003). Microfinance in times of crisis: The effects of competition, rising indebtedness, and economic crisis on repayment behavior. World Development, 31(12), 2085–2114. https://doi.org/10.1016/j.worlddev.2003.09.004
Wibowo, B. (2017). Banking Competition Measurement and Banking Sector Performance: Analysis of 4 ASEAN Countries. Signifikan: Jurnal Ilmu Ekonomi, 6(1), 1–28. https://doi.org/10.15408/sjie.v5i2.3193
Assefa, E., Hermes, N., & Meesters, A. (2013). Competition and the performance of Microfinance institutions. Applied Financial Economics, 23(9), 767–782. https://doi.org/10.1080/09603107.2012.754541
Azmi, W., Ali, M., Arshad, S., & Rizvi, S. A. R. (2019). Intricacies of competition, stability, and diversification: Evidence from dual banking economies. Economic Modelling, 83(February), 111–126. https://doi.org/10.1016/j.econmod.2019.02.002
Bain, J. S. (1951). Relation of Profit Rate to Industry Concentration. Quarterly Journal of Economics, 65(3), 293–324. Retrieved from https://about.jstor.org/terms
Baquero, G., Hamadi, M., & Heinen, A. (2018). Competition, Loan Rates, and Information Dispersion in Nonprofit and For-Profit Microcredit Markets. Journal of Money, Credit and Banking, 50(5), 893–937. https://doi.org/10.1111/jmcb.12472
Berger, A. N., & Hannan, T. (1989). The Price-Concentration Relationship in Banking. The Review of Economics and Statistics, 71(2), 291–299.
Berger, A. N., Hasan, I., Klapper, L. F., & Bank, T. W. (2004). Further Evidence on the Link between Finance and Growth: An International Analysis of Community Banking and Economic Performance. Journal of Financial Services Research, 25(2), 169–202. Retrieved from https://remote-lib.ui.ac.id:2069/content/pdf/10.1023%2FB%3AFINA.0000020659.33510.b7.pdf
Bikker, J. A., & Haaf, K. (2002). Competition, concentration and their relationship: An empirical analysis of the banking industry. Journal of Banking and Finance, 26(11), 2191–2214. https://doi.org/10.1016/S0378-4266(02)00205-4
Bikker, J. A., Shaffer, S., & Spierdijk, L. (2012). Assessing competition with the panzar-rosse model: The role of scale, costs, and equilibrium. Review of Economics and Statistics, 94(4), 1025–1044. https://doi.org/10.1162/REST_a_00210
Boone, J. (2008). A New Way to Measure Competition. The Economic Journal, 118(531), 1245–1261.
Burgess, R., & Pande, R. (2005). Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment. American Economic Review, 95(3), 780–795. https://doi.org/10.1257/0002828054201242
Claessens, S., & Laeven, L. (2004). What Drives Bank Competition? Some International Evidence. Journal of Money, Credit and Banking, 36(3), 563–583.
Cull, R., Demirgüç-kunt, A., & Morduch, J. (2009). Banks and Microbanks.
Cull, R., Demirgüç-Kunt, A., & Morduch, J. (2009). Microfinance meets the market. Journal of Economic Perspectives, 23(1), 167–192. https://doi.org/10.1257/jep.23.1.167
Cyree, K. B., & Spurlin, W. P. (2012). The effects of big-bank presence on the profit efficiency of small banks in rural markets. Journal of Banking and Finance, 36(9), 2593–2603. https://doi.org/10.1016/j.jbankfin.2012.05.015
Flechsig, T. G. (1965). Problems of Banking Structure?: The Effect of of Concentration on Bank Loan Rates. The Journal of Finance, 20(2), 298–311. Retrieved from https://about.jstor.org/terms
Forssbæck, J., & Shehzad, C. T. (2014). The Conditional Effects of Market Power on Bank Risk — Cross-Country Evidence. Review of Finance, 1997–2038. https://doi.org/10.1093/rof/rfu044
González, F. (2009). Determinants of Bank-Market Structure?: Efficiency and Political Economy Variables. Journal of Money, Credit and Banking, 41(4), 735–754.
Guha, B., & Roy, P. (2013). Micro- finance competition?: Motivated micro-lenders , double-dipping and default. Jornal of Development Economics, 105, 86–102.
Gupta, N., & Mirchandani, A. (2019). Corporate governance and performance of microfinance institutions: recent global evidences. Journal of Management and Governance, (0123456789). https://doi.org/10.1007/s10997-018-9446-4
Iqbal, S., Nawaz, A., & Ehsan, S. (2019). Financial performance and corporate governance in microfinance: Evidence from Asia. Journal of Asian Economics, 60, 1–13. https://doi.org/10.1016/j.asieco.2018.10.002
Kar, A. K., & Bali Swain, R. (2018). Competition, Performance and Portfolio Quality in Microfinance Markets. European Journal of Development Research, 30(5), 842–870. https://doi.org/10.1057/s41287-018-0135-6
Kasman, A., & Carvallo, O. (2014). Financial Stability, Competition and Efficiency. Journal of Applied Economics, 17(2), 301–324. https://doi.org/10.1016/S1514-0326(14)60014-3
Martín-Oliver, A., & Salas-Fumás, V. (2008). The output and profit contribution of information technology and advertising investments in banks. Journal of Financial Intermediation, 17(2), 229–255. https://doi.org/10.1016/j.jfi.2007.10.001
Mason, E. S. (1939). Price and Production Policies of Large-Scale Enterprise. The American Economic Review (Vol. 29). Retrieved from https://remote-lib.ui.ac.id:2094/stable/pdf/1806955.pdf?refreqid=excelsior%3A78a226b8c1fe96a5bb4a40837db550f8
McIntosh, C., Dejanvry, A., & Sadoulet, E. (2005). How Rising Competition among Microfinance Institutions Affects Incumbent Lenders. The Economic Journal, 115(506), 987–1004.
Mcintosh, C., & Wydick, B. (2005). Competition and microfinance. Journal of Development Economics, 78, 271–298. https://doi.org/10.1016/j.jdeveco.2004.11.008
Mersland, R. (2011). The governance of non-profit micro finance institutions: Lessons from history. Journal of Management and Governance, 15(3), 327–348. https://doi.org/10.1007/s10997-009-9116-7
Meslier-Crouzille, C., Nys, E., & Sauviat, A. (2011). Contribution of Rural Banks to Regional Economic Development: Evidence from the Philippines. Regional Studies, 46(6), 775–791. https://doi.org/10.1080/00343404.2010.529117
Meyer, P. A. (1967). Price Discrimination, Regional Loan Rates, and the Structure of the Banking Industry Author. The Journal of Finance, 22(1), 37–48. Retrieved from https://remote-lib.ui.ac.id:2094/stable/pdf/2977298.pdf?refreqid=excelsior%3A43c134d67cbea56713c6f24c184505b4
Navajas, S., Conning, J., & Gonzalez-Vega, C. (2003). Lending technologies, competition and consolidation in the market for microfinance in Bolivia. Journal of International Development, 15(6), 747–770. https://doi.org/10.1002/jid.1024
Phan, H. T., Anwar, S., Alexander, W. R. J., & Phan, H. T. M. (2019). Competition, efficiency and stability: An empirical study of East Asian commercial banks. North American Journal of Economics and Finance, 50(October 2018), 100990. https://doi.org/10.1016/j.najef.2019.100990
Shaffer, S. (2004). Patterns of competition in banking. Journal of Economics and Business, 56(4), 287–313. https://doi.org/10.1016/j.jeconbus.2003.10.003
Shaffer, S., & Srinivasan, S. (2002). Structure-pricing linkages among singlemarket banks, controlling for credit quality. Applied Economics Letters, 9(10), 653–656. https://doi.org/10.1080/13504850110115159
Tabak, B. M., Gomes, G. M. R., & Medeiros, S. (2015). The impact of market power at bank level in risk-taking?: The Brazilian case. International Review of Financial Analysis, 40, 154–165. https://doi.org/10.1016/j.irfa.2015.05.014
VanHoose, D. (2017). The Industrial Organization of Banking. The Industrial Organization of Banking. https://doi.org/10.1007/978-3-662-54326-9
Vogelgesang, U. (2003). Microfinance in times of crisis: The effects of competition, rising indebtedness, and economic crisis on repayment behavior. World Development, 31(12), 2085–2114. https://doi.org/10.1016/j.worlddev.2003.09.004
Wibowo, B. (2017). Banking Competition Measurement and Banking Sector Performance: Analysis of 4 ASEAN Countries. Signifikan: Jurnal Ilmu Ekonomi, 6(1), 1–28. https://doi.org/10.15408/sjie.v5i2.3193
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2020-02-19
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Nisa, C. (2020). COMPETITION IN MICROFINANCE INSTITUTION: A LITERATURE REVIEW. Dinasti International Journal of Education Management And Social Science, 1(3), 341–348. https://doi.org/10.31933/dijemss.v1i3.165
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