Shettima, U.Dzolkarnaini, Nazam2023-04-132023-04-252023-04-132023-04-252023Shettima U and Dzolkarnaini N (2023) Deposit-borrowing substitutability: evidence from microfinance institutions around the world. International Journal of Finance and Economics. Accepted for publication.RMSID:212740415http://hdl.handle.net/10454/19409YesDrawing 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.en(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/)Research Development Fund Publication Prize AwardMicrofinance institutionsInternational evidenceInstitutional settingDynamic panel dataGMMSustainabilitySDGsArticlehttps://doi.org/10.1002/ijfe.2817CC-BY2023-04-13