Is there a difference in poverty outreach by type of microfinance institution? Country studies from Asia and Latin America

Microfinance is often seen as an effective tool to reach the poor, yet there is a paucity of studies on the poverty level of microfinance clients, differentiated by type of microfinance institution. This paper seeks to make a contribution in closing that knowledge gap, and focuses on Bangladesh and Peru, two of the pioneering countries in microfinance. We examine the poverty status of savers and borrowers with micro-banks, savings and credit cooperatives, and NGObased microfinance institutions. In order to determine the poverty status of clients, the analysis is carried out for national as well as international poverty lines. Member- or NGO-based microfinance institutions are found to have a higher poverty outreach.