Regulation, Supervision and Social and Financial Efficiency of Microfinance Institutions in ASEAN-5 Countries

Abstract

This study delivers new empirical evidence on the impact of banking regulations on the levels of social and financial efficiency of microfinance institutions (MFIs) between the years 2012 to 2018. The sample consisted of data from 172 MFIs from ASEAN-5 countries. As the first stage of the analysis, data envelopment analysis (DEA) was employed to determine a score of the level of social and financial efficiency for the sampled MFIs. Meanwhile, panel regression analysis and the Generalized a Faculty of Business and Management, Universiti Teknologi MARA Campus Seremban 3, 70300 Seremban, Negeri Sembilan. Email: nuraz3169@uitm.edu.my (Corresponding author) b School of Business and Economics, Universiti Putra Malaysia, 43400 Serdang, Selangor, Malaysia. Email: fakarudin@upm.edu.my c School of Business and Economics, Universiti Putra Malaysia, 43400 Serdang, Selangor, Malaysia. Email: lawsh@upm.edu.my d Faculty of Technology Management and Technopreneur, Universiti Teknikal Malaysia, Jalan Hang Tuah Jaya, 76100 Durian Tunggal, Melaka. Email: hariri@utem.edu.my e Faculty of Business and Management, Universiti Teknologi MARA Campus Puncak Alam, 42300 Kuala Selangor, Selangor. Email: fadzlansufian@uitm.edu.my f School of Economics and Management, Xiamen University Malaysia Jalan Sunsuria, Bandar Sunsuria, 43900 Sepang, Selangor. Email: annuar.nassir@xmu.edu.my * The authors would like to thank the editors and the anonymous referees of the journal for their constructive comments and suggestions, which have significantly helped to improve the paper. Furthermore, special thanks to: 1) Fundamental Research Grant Scheme (FRGS) Project Code: 600IRMI/FRGS 5/3 (141/2019) sponsored by Malaysian Ministry of Higher Education; 2) Universiti Teknologi MARA, Malaysia; and 3) Universiti Putra Malaysia Grant IPS Vot No. 9651500 sponsored by Universiti Putra Malaysia as organisations that funded our research. The usual caveats apply. Article Info: Received 26 July 2019; Revised 31 May 2020; Accepted 29 September 2020 https://doi.org/10.22452/MJES.vol57no2.5