Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
Towards sustainable microfinance: The case of Capitec Bank and Grameen Bank
This thesis investigates the level of sustainability of two microfinance institutions (MFIs): Grameen Bank of Bangladesh and Capitec Bank of South Africa. Data from 2004 to 2013 is used in this study employing internationally accepted sustainability criteria, namely, the Small Enterprise Education a...
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Language: | English |
| Published: |
Graduate School of Business (GSB)
2019
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867613172014252032 |
|---|---|
| access_status_str | Open Access |
| author | Verryn, Annette |
| author2 | Biekpe, Nicholas |
| author_browse | Biekpe, Nicholas Verryn, Annette |
| author_facet | Biekpe, Nicholas Verryn, Annette |
| author_sort | Verryn, Annette |
| collection | Thesis |
| description | This thesis investigates the level of sustainability of two microfinance institutions (MFIs): Grameen Bank of Bangladesh and Capitec Bank of South Africa. Data from 2004 to 2013 is used in this study employing internationally accepted sustainability criteria, namely, the Small Enterprise Education and Promotion (SEEP) 2010 Microfinance Financial Reporting Standards (MFRS) and the SEEP Framework of 2005. The results of this study indicate that although the operations of both microfinance institutions are sustainable, Capitec Bank exhibits a higher level of sustainability as compared to Grameen Bank. This is evidenced by Capitec Bank’s higher levels of profitability, capital adequacy and solvency, operational self-sufficiency, and healthier asset portfolio. This finding underlines South Africa’s financial sector’s stability, institutional quality, competitive market, and solid regulatory framework. The sustainability criteria suggest that Capitec Bank and other South African MFIs should heed Grameen Bank’s low ROE and insufficient capital adequacy and solvency measures. Ensuring healthy and strategic lending portfolios gives a good ROE for a firm’s shareholders. Furthermore, the capital adequacy and solvency ratios have important implications for an institution’s capital structure. Therefore, Capitec and South African MFIs should maintain healthy ROE, capital adequacy and solvency ratios in order to ensure their long-term sustainability. As future research, it would be useful if data were made available to enable an assessment of a failed South African MFI to obtain clearer insight into the South African microfinance sector. Furthermore, data on Grameen and Capitec’s asset quality and social performance will give additional insight into the social sustainability of these two MFIs. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/30219 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:31:54.917Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/30219 Towards sustainable microfinance: The case of Capitec Bank and Grameen Bank Verryn, Annette Biekpe, Nicholas Development Finance This thesis investigates the level of sustainability of two microfinance institutions (MFIs): Grameen Bank of Bangladesh and Capitec Bank of South Africa. Data from 2004 to 2013 is used in this study employing internationally accepted sustainability criteria, namely, the Small Enterprise Education and Promotion (SEEP) 2010 Microfinance Financial Reporting Standards (MFRS) and the SEEP Framework of 2005. The results of this study indicate that although the operations of both microfinance institutions are sustainable, Capitec Bank exhibits a higher level of sustainability as compared to Grameen Bank. This is evidenced by Capitec Bank’s higher levels of profitability, capital adequacy and solvency, operational self-sufficiency, and healthier asset portfolio. This finding underlines South Africa’s financial sector’s stability, institutional quality, competitive market, and solid regulatory framework. The sustainability criteria suggest that Capitec Bank and other South African MFIs should heed Grameen Bank’s low ROE and insufficient capital adequacy and solvency measures. Ensuring healthy and strategic lending portfolios gives a good ROE for a firm’s shareholders. Furthermore, the capital adequacy and solvency ratios have important implications for an institution’s capital structure. Therefore, Capitec and South African MFIs should maintain healthy ROE, capital adequacy and solvency ratios in order to ensure their long-term sustainability. As future research, it would be useful if data were made available to enable an assessment of a failed South African MFI to obtain clearer insight into the South African microfinance sector. Furthermore, data on Grameen and Capitec’s asset quality and social performance will give additional insight into the social sustainability of these two MFIs. 2019-06-19T10:35:04Z 2019-06-19T10:35:04Z 2015 2019-06-19T10:34:39Z Master Thesis Masters http://hdl.handle.net/11427/30219 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce |
| spellingShingle | Development Finance Verryn, Annette Towards sustainable microfinance: The case of Capitec Bank and Grameen Bank |
| thesis_degree_str | Master's |
| title | Towards sustainable microfinance: The case of Capitec Bank and Grameen Bank |
| title_full | Towards sustainable microfinance: The case of Capitec Bank and Grameen Bank |
| title_fullStr | Towards sustainable microfinance: The case of Capitec Bank and Grameen Bank |
| title_full_unstemmed | Towards sustainable microfinance: The case of Capitec Bank and Grameen Bank |
| title_short | Towards sustainable microfinance: The case of Capitec Bank and Grameen Bank |
| title_sort | towards sustainable microfinance the case of capitec bank and grameen bank |
| topic | Development Finance |
| url | http://hdl.handle.net/11427/30219 |
| work_keys_str_mv | AT verrynannette towardssustainablemicrofinancethecaseofcapitecbankandgrameenbank |