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

48 Pages Posted: 21 May 2018

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: 2015

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 (2015). World Development, Vol. 67, 2015, pp. 110-125. Available at SSRN: https://ssrn.com/abstract=3174346

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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