Ownership and technical efficiency of microfinance institutions: Empirical evidence from Latin America

R. Servin Juarez, B.W. Lensink, M.M. van den Berg

Research output: Contribution to journalArticleAcademicpeer-review

93 Citations (Scopus)

Abstract

By using stochastic frontier analysis, this article examines the technical efficiency of different types of microfinance institutions in Latin America. In particular, it tests whether differences in technical efficiency, both intra- and interfirm, can be explained by differences in ownership. With a focus on non-governmental organizations, cooperatives and credit unions, non-bank financial intermediaries, and banks, the data set contains 1681 observations from a panel of 315 institutions operating in 18 Latin American countries. The results show that non-governmental organizations and cooperatives have much lower interfirm and intrafirm technical efficiencies than non-bank financial intermediaries and banks, which indicates the importance of ownership type for technical efficiency.
Original languageEnglish
Pages (from-to)2136-2144
JournalJournal of Banking and Finance
Volume36
Issue number7
DOIs
Publication statusPublished - 2012

Keywords

  • banking

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