Effect of default on profitability in a Costa Rican microfinance institution: Financial model proposal
The effect of default in loan portfolios on the profitability of a Microfinance Institution was analyzed through fundamental analysis with projection of financial statements, awareness of the profitability indicator and formulation of macroeconomic scenarios with increases in the cost of financing....
| Autores Principales: | Barboza-Navarro, David, Solórzano-Thompson, Johanna, Paniagua-Molina, Javier |
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| Formato: | Artículo |
| Idioma: | Español |
| Publicado: |
Editorial Tecnológica de Costa Rica (entidad editora)
2023
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| Acceso en línea: |
https://revistas.tec.ac.cr/index.php/tec_marcha/article/view/6107 https://hdl.handle.net/2238/14509 |
| Sumario: |
The effect of default in loan portfolios on the profitability of a Microfinance Institution was analyzed through fundamental analysis with projection of financial statements, awareness of the profitability indicator and formulation of macroeconomic scenarios with increases in the cost of financing. The results show the counterproductive effect on profitability of high default rates, although the company´s business model is robust enough to cope with persistent increases in default. Strengthening operational strategies and promoting research in Costa Rican and Latin American microfinance industry is essential to improve its performance and financial inclusion. |
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