Regulation, supervision and social and financial efficiency of microfinance institutions in ASEAN-5 countries
This study delivers new empirical evidence on the impact of banking regulations on the levels of social and financial efficiency of microfinance institutions (MFIs) between the years 2012 to 2018. The sample consisted of data from 172 MFIs from ASEAN-5 countries. As the first stage of the analysis,...
| Main Authors: | , , , , , |
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| Format: | Article |
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Malaysian Economic Association
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/87434/ |
| _version_ | 1848860437131558912 |
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| author | Zainal, Nurazilah Kamarudin, Fakarudin Law, Siong Hook Bakri, Mohammed Hariri Sufian, Fadzlan Md Nassir, Annuar |
| author_facet | Zainal, Nurazilah Kamarudin, Fakarudin Law, Siong Hook Bakri, Mohammed Hariri Sufian, Fadzlan Md Nassir, Annuar |
| author_sort | Zainal, Nurazilah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study delivers new empirical evidence on the impact of banking regulations on the levels of social and financial efficiency of microfinance institutions (MFIs) between the years 2012 to 2018. The sample consisted of data from 172 MFIs from ASEAN-5 countries. As the first stage of the analysis, data envelopment analysis (DEA) was employed to determine a score of the level of social and financial efficiency for the sampled MFIs. Meanwhile, panel regression analysis and the Generalized Method of Moments (GMM) estimator were used to examine the impact of banking regulations on the level of social and financial efficiency of the sampled MFIs. The findings showed that the sampled MFIs achieved a lower level of social efficiency while attaining a higher level of financial efficiency. The lower level of social efficiency indicated that the sampled MFIs had lost their focus on poverty reduction, while at the same time, switching their focus toward financial sustainability. The empirical findings also showed a significant impact of bank regulation and bank supervision on the levels of social and financial efficiency. Overall, bank regulation negatively influenced the level of social efficiency and bank supervision impacted the level of financial efficiency of the sampled MFIs positively. The findings from this study provide new insights for bank regulators and policymakers to construct regulatory frameworks that are relevant to the operation of MFIs. |
| first_indexed | 2025-11-15T12:45:13Z |
| format | Article |
| id | upm-87434 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T12:45:13Z |
| publishDate | 2020 |
| publisher | Malaysian Economic Association |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-874342023-05-18T02:11:54Z http://psasir.upm.edu.my/id/eprint/87434/ Regulation, supervision and social and financial efficiency of microfinance institutions in ASEAN-5 countries Zainal, Nurazilah Kamarudin, Fakarudin Law, Siong Hook Bakri, Mohammed Hariri Sufian, Fadzlan Md Nassir, Annuar This study delivers new empirical evidence on the impact of banking regulations on the levels of social and financial efficiency of microfinance institutions (MFIs) between the years 2012 to 2018. The sample consisted of data from 172 MFIs from ASEAN-5 countries. As the first stage of the analysis, data envelopment analysis (DEA) was employed to determine a score of the level of social and financial efficiency for the sampled MFIs. Meanwhile, panel regression analysis and the Generalized Method of Moments (GMM) estimator were used to examine the impact of banking regulations on the level of social and financial efficiency of the sampled MFIs. The findings showed that the sampled MFIs achieved a lower level of social efficiency while attaining a higher level of financial efficiency. The lower level of social efficiency indicated that the sampled MFIs had lost their focus on poverty reduction, while at the same time, switching their focus toward financial sustainability. The empirical findings also showed a significant impact of bank regulation and bank supervision on the levels of social and financial efficiency. Overall, bank regulation negatively influenced the level of social efficiency and bank supervision impacted the level of financial efficiency of the sampled MFIs positively. The findings from this study provide new insights for bank regulators and policymakers to construct regulatory frameworks that are relevant to the operation of MFIs. Malaysian Economic Association 2020-12 Article PeerReviewed Zainal, Nurazilah and Kamarudin, Fakarudin and Law, Siong Hook and Bakri, Mohammed Hariri and Sufian, Fadzlan and Md Nassir, Annuar (2020) Regulation, supervision and social and financial efficiency of microfinance institutions in ASEAN-5 countries. Malaysian Journal of Economic Studies, 57 (2). 253 - 273. ISSN 1511-4554 https://mjes.um.edu.my/index.php/MJES/article/view/27609 10.22452/MJES.vol57no2.5 |
| spellingShingle | Zainal, Nurazilah Kamarudin, Fakarudin Law, Siong Hook Bakri, Mohammed Hariri Sufian, Fadzlan Md Nassir, Annuar Regulation, supervision and social and financial efficiency of microfinance institutions in ASEAN-5 countries |
| title | Regulation, supervision and social and financial efficiency of microfinance institutions in ASEAN-5 countries |
| title_full | Regulation, supervision and social and financial efficiency of microfinance institutions in ASEAN-5 countries |
| title_fullStr | Regulation, supervision and social and financial efficiency of microfinance institutions in ASEAN-5 countries |
| title_full_unstemmed | Regulation, supervision and social and financial efficiency of microfinance institutions in ASEAN-5 countries |
| title_short | Regulation, supervision and social and financial efficiency of microfinance institutions in ASEAN-5 countries |
| title_sort | regulation, supervision and social and financial efficiency of microfinance institutions in asean-5 countries |
| url | http://psasir.upm.edu.my/id/eprint/87434/ http://psasir.upm.edu.my/id/eprint/87434/ http://psasir.upm.edu.my/id/eprint/87434/ |