A Study Of The Financial Efficiency And Social Efficiency Of The Microfinance Institutions With Different Types Of Ownership

Microfinance institutions are financial institutions that provide microfinance services for the middle and low income groups,and it is an effective supplement for the traditional financial system.According to the difference of ownership types,microfinance institutions can be divided into non-governmental organizations,credit union,non-bank financial institutions and banks.In the early stage of microfinance industry,non-governmental organizations and credit union were the main microfinance institutions,but since 1990 s,with the increasing trend of commercial development in the microfinance industry,the proportion of non-bank financial institutions and banks in the total amount of microfinance institutions was increasing.This paper analyzes the current commercialization trend of microfinance industry from the perspective of efficiency,and I think an important difference between institutions with different types of ownership is that the efficiency level is different.This paper uses the combined method of theoretical analysis and empirical analysis to analyze the comparison of the financial efficiency and social efficiency among four different types of microfinance institutions: non-governmental organizations,non-bank financial institutions,banks and credit union.Then it based on the mixed cross-sectional data of 327 microfinance institutions from 67 countries and regions around the world during the period of 2001-2016 as well as Battese & Coelli(1995)model of stochastic frontier analysis method to test the theoretical hypothesis proposed in this paper.Research results show that: microfinance bank is the type of microfinance institution with the highest level of financial efficiency and social efficiency,the financial efficiency level of non-bank financial institutions is higher than that of non-governmental organizations but the social efficiency level is lower than that of non-governmental organizations,the financial efficiency and social efficiency of credit union are relatively lowest,it indicating that the commercial trend of microfinance industry can improve the efficiency of resource utilization in this industry,however,this article does not advocate the excessive commercialization of the microfinance industry,non-governmental organizations have some advantages in achieving social goals,the development of a variety of microfinance institutions to form a more complete microfinance service system can more effectively outreach the middle and low income groups.