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Competition in Microfinance: Does It Affect Performance, Portfolio Quality, and Capitalization?

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Microfinance Institutions

Part of the book series: Palgrave Studies in Impact Finance ((SIF))

Abstract

In a competitive set up, by definition, many firms contend for a limited market share. In the financial sector in particular, competition greatly affects consumers’ wealth and financial soundness of banks (Bikker and Bos, 2005). Competition also affects the quality and diversity of products and productive efficiency of financial institutions (Claessens and Laeven, 2005). In the globalized microfinance industry, where competition has become increasingly severe, especially among the MFIs in Bangladesh, East Africa and Latin America, MFIs are struggling for FSS.

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© 2014 Ashim Kumar Kar and Ranjula Bali Swain

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Kar, A.K., Swain, R.B. (2014). Competition in Microfinance: Does It Affect Performance, Portfolio Quality, and Capitalization?. In: Mersland, R., Strøm, R.Ø. (eds) Microfinance Institutions. Palgrave Studies in Impact Finance. Palgrave Macmillan, London. https://doi.org/10.1057/9781137399663_11

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