Thumbnail Image
Publication

Deposit-borrowing substitutability: evidence from microfinance institutions around the world

Shettima, U.
; 
Publication Date
2023
End of Embargo
Supervisor
Keywords
Research Development Fund Publication Prize Award, Microfinance institutions, International evidence, Institutional setting, Dynamic panel data, GMM, Sustainability, SDGs
Rights
(c) 2023 The Authors. This is an Open Access article published under the Creative Commons CC-BY license (https://creativecommons.org/licenses/by/4.0/)
cb
Peer-Reviewed
Yes
Open Access status
openAccess
Accepted for publication
06/04/2023
Institution
Department
Awarded
Embargo end date
Collections
Management and Law Publications
Show all metadata
Files
Thumbnail Image
shettima_and_dzolkarnaini_2023.pdf
Adobe PDF, 1.2 MB
AAM - keep supressed
Adobe PDF, 404.55 KB
Additional title
Abstract
Drawing from 645 microfinance institutions across 56 countries, this paper examines the deposit-borrowing dynamic of microfinance institutions’ source of capital. We find that deposits and borrowings are substitutes rather than complements. We further find that the degree of substitutability is more pronounced among microfinance institutions operating in a developed financial sector where the level of information asymmetry is lower. Our findings represent novel contribution in understanding microfinance institutions’ funding behaviour that supports its quest for further growth and long-term sustainability.
URI
http://hdl.handle.net/10454/19409
Version
Published version
Citation
Shettima U and Dzolkarnaini N (2023) Deposit-borrowing substitutability: evidence from microfinance institutions around the world. International Journal of Finance and Economics. Accepted for publication.
Link to publisher’s version
Link to published version
Link to Version of Record
https://doi.org/10.1002/ijfe.2817
Type
Article
Qualification name
Notes
Research Development Fund Publication Prize Award winner, April 2023.