Article Dans Une Revue Journal of banking & finance = Journal of banking and finance Année : 2019

Geographic diversification and credit risk in microfinance

Stephen Zamore
Leif Atle Beisland
  • Fonction : Auteur
Roy Mersland

Résumé

This paper examines the relation between geographic diversification and credit risk in microfinance. The empirical findings from the banking industry are mixed and inconclusive.

This study extends the discussion into a new international setting: the global microfinance industry with lenders having both social and financial objectives. Using a large global sample of microfinance institutions (MFIs), we find that geographic diversification comes with more credit risks. However, this finding is more pronounced among non-shareholder MFIs like NGOs and cooperatives, compared to shareholder-owned MFIs. Moreover, the results show that MFIs can mitigate the effect of geographic diversification on risk with group lending methodology.

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Dates et versions

hal-05221027 , version 1 (24-08-2025)

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Stephen Zamore, Leif Atle Beisland, Roy Mersland. Geographic diversification and credit risk in microfinance. Journal of banking & finance = Journal of banking and finance, 2019, 109, pp.105665. ⟨10.1016/j.jbankfin.2019.105665⟩. ⟨hal-05221027⟩
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