Akademik Veri Yönetim Sistemi
Selçuk Üniversitesi İktisadi ve İdari Bilimler Fakültesi Sosyal ve Ekonomik Araştırmalar Dergisi, cilt.23, sa.1, ss.1-11, 2023 (Hakemli Dergi)
Purpose - This article investigates the factors influencing the
financial performance and the level of financial sustainability of
microfinance institutions (MFIs) in Togo.
Methodology - Ordinary least squares models and binary probit models
were employed in the research to identify the determinants of return on
assets as a proxy for the financial performance and operational and
financial sustainability of microfinance institutions. Unbalanced panel
data collected from the MIX Market database of 29 MFIs in Togo over the
period 1999–2018 was used in the study
Findings – The results show that MFI's financial performance is
positively and statistically influenced by size. However, the number of
depositors per borrower and the loan loss ratio is negatively linked to
financial performance. The operational sustainability was positively
related to the depositors per borrower ratio, the PAR > 30 (Portfolio
at Risk 30 days), and the productivity ratio. On the other hand, it is
negatively related to PAR > 90 and the ratio of personal expenses to
outstanding credit. Finally, financial sustainability was significantly
and positively influenced by the size, and it was significantly and
negatively influenced by PAR > 90.
Conclusions – Taking these results into account can allow microfinance
actors in Togo as well as politicians and donors to better orient their
actions in the sector