Please use this identifier to cite or link to this item: http://repository.aaup.edu/jspui/handle/123456789/1618
Title: Modeling the factors of portfolio at risk for microfinance institutions in Palestine
Authors: Abusharbeh, Mohammed$AAUP$Palestinian
Keywords: Portfolio at risk
active borrowers
operational efficiency
personnel
inflation
Issue Date: 5-Mar-2023
Publisher: Taylor & Francis Group
Abstract: The main objective of this paper is to examine the determinants of portfolio at risk in Palestine by analyzing the impact of macroeconomic and microlevel factors on credit risk for microfinance institutions during the period of 2010– 2020. This study includes five regulated MFIs using generalized method of moment estimator. The findings indicate that portfolio at risk is more sensitive to the institutional factors and economic cycle. The operating efficiency and number of loan officers have positive and significant effect on credit risk. However, growth in GDP and number of active borrowers have negative and significant effect on credit risk. But, no evidence supports the impact of inflation and interest rate on vulnerability of credit risk. The conclusion presented may be useful for MFI directors and regulators in timely repayments and credit risk control. Overall, our ample evidence suggests that MFIs directors should consider the influence of institutional factors on their investment and credits decisions.
URI: http://repository.aaup.edu/jspui/handle/123456789/1618
Appears in Collections:Faculty & Staff Scientific Research publications

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