Determinants of financial performance of microfinance institutions in Tanzania
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Date
2013-11Author
Kawiche, Prosper J
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The aim of the study was to determine the relationship between selected factors and
performance of Microfinance institutions in Tanzania by integrating financial
performance measures. The study used the following variables: debt ratio, portfolio to
assets ratio and operating expense ratio as key measures of performance. The study
was analyzed using OLS regression model. The findings of the study show that the
financial performance of the MFIs reviewed was low. This low financial performance
was due to the low profit margin. In addition, the high amounts of operating expenses
and liabilities drained down the amount of net income of the MFIs. Microfinance
institutions need to balance the financial performance to ensure survival in a
competitive market while meeting their social objective. Likewise, the study faced
challenges in collecting data due to the fact that most MFIs were not regulated hence
giving difficulties in getting their financial statements to measure their performance.
Citation
A Research Report Submitted In Partial Fulfillment Of The Requirements For Master Of Science In Finance Degree Of The School Of Business University Of NairobiPublisher
University of Nairobi School of Business