Title: Female borrowers and credit risk in microfinance institutions: an international study

Authors: Michael Adusei

Addresses: Department of Accounting and Finance, KNUST School of Business, Kwame Nkrumah University of Science and Technology, Kumasi, Ashanti Region, Ghana

Abstract: This paper assesses the effect of lending to women on the credit risk of Microfinance Institutions (MFIs). It also investigates whether the effect is sensitive to board gender diversity and female loan officers. To pursue these objectives, the study engages a large data set (2010-2018) covering 555 MFIs in 74 countries. The results from a battery of system GMM estimations suggest that female borrowers worsen the credit risk of MFIs and that the magnitude of this negative impact decreases when female borrowers and board gender diversity interact. Female loan officers come up as having no significant effect on the credit risk of MFIs. Emerging from these results is that whereas board gender diversity matters for the gender-credit risk nexus, female loan officers do not.

Keywords: gender; female borrowers; credit risk; microfinance institutions; board gender diversity; female loan officers.

DOI: 10.1504/EJIM.2023.133403

European Journal of International Management, 2023 Vol.21 No.2, pp.326 - 344

Accepted: 29 Jun 2020
Published online: 15 Sep 2023 *

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