Microfinance in Ghana : A Comparative Study of Performance of the Formal versus Informal Rural Financial Institutions

Eric Osei‐Assibey · 2010 · Institutional Repositories DataBase (IRDB)

Summary. Formal banks in Ghana increasingly compete with traditional microfinance institutions to serve microenterprises, but hesitation remains high. This study compares their performance using survey data from rural financial institutions. Formal banks cite profitability as their main incentive but fear high transaction costs and borrower risk. Informal institutions outperform formal ones at reducing defaults. Collateral reduces non-performing loans, while women-focused lenders perform better. Rural location and high lending rates increase default risk.

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@article{osei-assibey-2010-microfinance-ghana-comparative-study-performance,
  title   = {Microfinance in Ghana : A Comparative Study of Performance of the Formal versus Informal Rural Financial Institutions},
  author  = {Eric Osei‐Assibey},
  journal = {Institutional Repositories DataBase (IRDB)},
  year    = {2010},
  doi     = {10.18999/forids.40.151},
  url     = {https://doi.org/10.18999/forids.40.151}
}

TY  - JOUR
TI  - Microfinance in Ghana : A Comparative Study of Performance of the Formal versus Informal Rural Financial Institutions
AU  - Eric Osei‐Assibey
JO  - Institutional Repositories DataBase (IRDB)
PY  - 2010
DO  - 10.18999/forids.40.151
UR  - https://doi.org/10.18999/forids.40.151
ER  - 

Details

DOI

10.18999/forids.40.151

Countries

Ghana

Regions

Africa

Categories

funding, entrepreneurship

Added

2026-04-28