Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323833 
Year of Publication: 
2019
Citation: 
[Journal:] Journal of Banking & Finance [ISSN:] 1872-6372 [Volume:] 109 [Article No.:] 105665 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2019 [Pages:] 1-13
Publisher: 
Elsevier, Amsterdam
Abstract: 
This paper examines the relation between geographic diversification and credit risk in microfinance. The empirical findings from the banking industry are mixed and inconclusive. This study extends the discussion into a new international setting: the global microfinance industry with lenders having both social and financial objectives. Using a large global sample of microfinance institutions (MFIs), we find that geographic diversification comes with more credit risks. However, this finding is more pronounced among non-shareholder MFIs like NGOs and cooperatives, compared to shareholder-owned MFIs. Moreover, the results show that MFIs can mitigate the effect of geographic diversification on risk with group lending methodology.
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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