Outbreak

Internal medicine

Sociology

Business

Demography

Virology

Economics

Microeconomics

Economic impact analysis

Disease

Microfinance

Population

Social impact

2019-20 coronavirus outbreak

Severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2)

Coronavirus disease 2019 (COVID-19)

Economic growth

Infectious disease (medical specialty)

Monetary economics

Medicine

Financial system

Biology

International Review of Economics & Finance

This study investigates the effect of the COVID-19-induced decline in economic activities on the financial and social efficiency of microfinance institutions (MFIs). We find that the pandemic-induced impact decreases the financial efficiency of MFIs; however, the social efficiency of MFIs is increased under the impact of COVID-19. To explore potential channels through which efficiency is influenced by the COVID-19 outbreak, we examine the supply and demand side of MFIs' funding. We find that the lending rate mediates the relationship between the impact of COVID-19 and MFI efficiency, whereas the mediating role of the funding rate is negligible.

The impact of COVID-19 on the efficiency of microfinance institutions