Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market

48 Pages Posted: 19 May 2017

See all articles by Marie Briere

Marie Briere

Amundi Asset Management; Paris Dauphine University; Université Libre de Bruxelles

Ariane Szafarz

Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB) & CERMi

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Date Written: October 1, 2014

Abstract

This paper is the first to draw a global picture of worldwide microfinance equity by taking full advantage of daily quoted prices. We revisit previous findings showing that investors should consider microfinance as a self-standing sector. Our results are threefold. First, microfinance has become less risky and more closely correlated with the financial sector. This convergence might be followed by a decline in the proportion of women borrowers. Second, microfinance and finance shares have equivalent currency exposure. Last, introducing a self-standing microfinance sector presents few diversification benefits. This paper confirms that microfinance has changed dramatically during the last decade.

Keywords: Microfinance, South Africa, Kenya, Indonesia, Bangladesh, Mexico

JEL Classification: G11, G15, O16, C58, G21

Suggested Citation

Briere, Marie and Szafarz, Ariane, Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market (October 1, 2014). World Development, Volume 67, Pages 110–125, March 2015. Available at SSRN: https://ssrn.com/abstract=2970847

Marie Briere

Amundi Asset Management ( email )

90 Boulevard Pasteur
Paris, 75015
France

Paris Dauphine University ( email )

Université Libre de Bruxelles ( email )

Brussels
Belgium

Ariane Szafarz (Contact Author)

Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB) & CERMi ( email )

50 Avenue Roosevelt
Brussels 1050
Belgium

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