Financial Performance of MFIs in Bangladesh-A Multiple Regression Analysis

Microfinance Institutions (MFIs) are those institutions which are providing microfinance services such as savings, credit, insurance and remittance services to poor. The study aims at analyzing the financial performance of MFIs in Bangladesh by employing multiple regression analysis. The data have been collected from Microfinance Information Exchange (MIX) from the fiscal year 2007 to 2011. The statistical tools numerical scoring and multiple regression analysis have been used for analyzing the data. It is found that the variables, namely, debt to equity ratio, gross loan portfolio to total assets, number of active borrowers, return on assets, operational self-sufficiency, financial revenue/assets, profit margin, operating expense/assets, operating expense/loan portfolio, average salary/GNI per capita, loans per staff member, personnel allocation ratio, PAR > 90 days and risk coveragehave been found to be the key drivers of the overall performance of MFIs in Bangladesh