What makes the difference? Microfinance versus commercial banks

Afsheen Abrar, Iftekhar Hasan*, Rezaul Kabir

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)
98 Downloads (Pure)


We make a comparison of microfinance banks (MBs) and commercial banks (CBs) in terms of efficiency, business orientation, stability, and asset quality by analyzing a large sample of banks from 60 countries around the world. Our findings indicate that microfinance banks have higher intermediation, non-interest income, wholesale funding and liquidity, but lower efficiency and asset quality. These significant variations are influenced by smaller microfinance banks and are driven mostly to African and Latin American microfinance banks.
Original languageEnglish
Pages (from-to)759-778
Number of pages20
JournalBorsa Istanbul Review
Issue number4
Early online date6 Apr 2023
Publication statusPublished - Jul 2023


  • Microfinance
  • Banking
  • Business model
  • Efficiency
  • Stability


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