Vol. 4 (2) Dec. 2022

Article ID. JHSSR-1163-2022

Impact of COVID-19 Pandemic on the Microfinance Institutions Growth in the EU

Sara Ravan Ramzani, Behrooz Gharleghi, Alison Watson, Phungmayo Horam

Abstract:

Background: This study examines the social and financial implications of EU Microfinance Institutions (MFIs) in response to the decline in economic activity caused by COVID-19.

Method: The Data Envelopment Analysis (DEA) technique is used to evaluate such impacts.

Results: The empirical results suggest that the pandemic affects MFI’s financial efficiency adversely and increases MFI’s social efficiency. MFI lending rates show the impact of COVID-19 on MFI efficiency, but the contribution of refinancing rates is negligible.

Conclusion: It is found that the pandemic reduces the economic efficiency of MFIs, while improving the social efficiency of MFIs.

DOI: https://doi.org/10.37534/bp.jhssr.2022.v4.n2.id1163.p122