Determinant of profitability in the Kosovo Microfinance Institutions
Session
Management, Business and Economics
Description
In this study we assess the determinants of profitability in the microfinance institutions. The microfinance institution became very important to marginalized groups, they finance their endeavor that banks are uninterested. During this time the microfinance institutions managed to increases their capital substantially by being very profitable and as result slowly they started to move in to the turf of the banks.
The results reveal that the business loans are the most contributors to profitability in the microfinance. In terms of the cost, the labor cost affects profitability negatively mostly, showing that labor cost are important factors. Non-performing loans does not have any effect on profitability. We have used secondary data from the Kosovo Central Bank for year 2015 – 2019. The method we used are pooled, fixed effect and random effect, moreover, we did a hausman test in order to test which method is more appropriate.
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-47-5
Location
UBT Kampus, Lipjan
Start Date
30-10-2021 12:00 AM
End Date
30-10-2021 12:00 AM
DOI
10.33107/ubt-ic.2021.521
Recommended Citation
Nurboja, Bashkim, "Determinant of profitability in the Kosovo Microfinance Institutions" (2021). UBT International Conference. 545.
https://knowledgecenter.ubt-uni.net/conference/2021UBTIC/all-events/545
Determinant of profitability in the Kosovo Microfinance Institutions
UBT Kampus, Lipjan
In this study we assess the determinants of profitability in the microfinance institutions. The microfinance institution became very important to marginalized groups, they finance their endeavor that banks are uninterested. During this time the microfinance institutions managed to increases their capital substantially by being very profitable and as result slowly they started to move in to the turf of the banks.
The results reveal that the business loans are the most contributors to profitability in the microfinance. In terms of the cost, the labor cost affects profitability negatively mostly, showing that labor cost are important factors. Non-performing loans does not have any effect on profitability. We have used secondary data from the Kosovo Central Bank for year 2015 – 2019. The method we used are pooled, fixed effect and random effect, moreover, we did a hausman test in order to test which method is more appropriate.