Efficiency of microfinance institutions in Mexico: A DEA analysis of social banking

https://doi.org/10.33110/cimexus200202

Abstract

Microfinance institutions (MFIs) are entities that offer financial products and services to a segment of the population with incomes lower than those typically required by traditional banks. The objective of this research is to evaluate the efficiency of microfinance institutions in Mexico, to determine which are the most efficient, and to identify whether the institution's purpose affects the results. It also aims to determine if the efficiency ranking changes when financial income from loans is considered as a variable. The methodology used in this study is Data Envelopment Analysis (DEA), specifically the CCR and VRS methodologies. The data used is limited to the year 2020. The microfinance institution CAME, a publicly traded company with variable capital, achieved the highest efficiency level.