Remodeling Index for the Microfinance Institutional Sustainability: A Theoretical Review
Date
2018-06Author
Muhammad Saad
Hasniza, Mohd Taib
Abul Bashar, Bhuiyan
Metadata
Show full item recordAbstract
Sustainability Index plays a vital role in measuring the sustainability level by using multidimensional
constructs. Sustainability of Microfinance institution (MFI) may simply be
defined as the capacity of the MFI to continue as a going concern by providing services to
targeted people, ignored by the conventional financial institutions. The purpose of this
study is to conceptualize an index that can measure the sustainability of Microfinance
institution. Hence, this paper is primarily reviewing the existing literature on measuring
sustainability of MFI while discussing the shortcomings of the current measurement of
sustainability. Furthermore, this study is the first of its kind to propose a comprehensive
index comprising of financial (financial self‐sufficiency and operational self‐sufficiency)
and outreach (depth of outreach and breadth of outreach) aspects to determine the overall
sustainability of MFI.