Thesis Open Access

How Efficiently are the Ethiopian MFIs Extending Financial Services to the Poor? A Comparison with the Commercial Banks

HUNDANOL ATNAFU

This study investigates how efficiently the MFIs are extending the frontier of financial intermediation by comparing their cost efficiency with that of the commercial banks using an unbalanced panel data of 21 firms (14 MFIs and 7 commercial banks) in Ethiopia over the period 2001-2008. The study used both non-structural and structural approaches to efficiency measurement. The non-structural approach is based on the interest rate margin analysis, while the structural approach utilizes the stochastic frontier technique to estimate the cost efficiency of the MFIs and commercial banks.

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Publication date:
June 1, 2010
DOI:
10.20372/nadre:2243

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