Formulation of microfinance institutions sustainability index in Malaysia / Muhammad Saad … [et al.]

Saad, Muhammad and Bhuiyan, Abul Bashar and Ali, Md Jafor and Munir, Abu Naaim and Alias, Zuraini (2021) Formulation of microfinance institutions sustainability index in Malaysia / Muhammad Saad … [et al.]. In: E-Proceeding for Asian Conference on Business, Economics and Social Science (ACBESS) 2021. Center for Islamic Philanthropy and Social Finance (CIPSF), Alor Gajah, p. 94.


Sustainability of Microfinance Institutions (MFIs) has considerably gained the attention of researchers during the past decade. The dual goals social sustainability and financial sustainability of MFIs are widely studied yet remain unsolved in the existing literature. This study has addressed the above gap by developing a composite index of sustainability for MFIs. Data for MFI in Malaysia was used, and Principal Component analysis is applied for obtaining sustainability score. Quantile, Stepwise and Robust Regression analysis are used to identify the determinants of sustainability. Empirical findings suggest that portfolio quality, operating efficiency, leverage, and size influence the sustainability of MFIs in Malaysia. The study is a novel attempt to develop sustainability Index for MFIs in Malaysia. The findings of the study may help both policy makers and practitioners to better understand the dual goal perspective and significant determinants of MFIs sustainability in Malaysia.


Item Type: Book Section
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Saad, Muhammad
Bhuiyan, Abul Bashar
Ali, Md Jafor
Munir, Abu Naaim
Alias, Zuraini
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > Microfinance
H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance
Divisions: Universiti Teknologi MARA, Melaka > Alor Gajah Campus
Page Range: p. 94
Keywords: Microfinance; Sustainability; Financial sustainability; Social sustainability; Outreach
Date: 2021
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