PDF_logo Efficiency of Microfinance Institutions in Bangladesh

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Efficiency of Microfinance Institutions in Bangladesh

Paper No:19

Author:Shakil Quayes and M. A Baqui Khalily



This study presents an empirical analysis of the cost effi ciency of a sample of microfi nance institutions (MFIs) operating in Bangladesh. These MFIs substantially vary in size and can also be characterised by their affi liation with donor and funding agencies. Therefore, the measurement of their performance poses an important challenge for the donor agencies and policymakers. Using stochastic frontier models in the measurement of the level of effi ciency for the MFIs, the study suggests that larger MFIs are more effi cient with some evidence of a trade-off between effi ciency and outreach.

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