This study explores the financial sustainability of microfinance institutions (MFIs) in the economic context to identify how macro-level economic decisions affect the micro-level decisions in the microfinance sector in South Asia. For that purpose, the data of 409 South Asian MFIs combined with the macroeconomic variables of respective countries are used over the period 1999–2017. The empirical analysis uses a fixed-effect model (FEM) to analyse the unbalance panel data of microfinance institutions and macroeconomic variables. We employ two-stage least squares (2SLS) model for robustness and System Generalized Method of Moment (GMM) to address the potential endogeneity and over-identification bias. The results reveal that economic indicators such as foreign investment, human development, inflation, interest rate, private credit, and labour force participation have negatively influenced financial sustainability except for the GDP growth. The overall economic results seem imperative from the good-governance perspective of MFIs. Besides, the government and microfinance policymakers need to give due consideration to the macro-level economic decisions to achieve the financial sustainability of MFIs. JEL Classification: A12, G21, G28, O1, Q01

The present study investigates the effect of financial development on sustainable competitiveness and its components (natural capital, resource intensity, and social cohesion) in the Arctic region. We employ bank-based, stock-market based, and composite index to measure financial development. To deal with endogeneity bias, system GMM is utilized. The results show a positive and significant effect of financial development on sustainable competitiveness. The estimates also assert that financial development encourages resource efficiency and social cohesion in the region. In contrast, we find the negative effect of financial development on natural capital. This suggests that overexploitation of natural resources may provide short-term benefits to the local and regional communities but it may threaten the long-term sustainability of the Arctic. Thus, the financial sector should be guided to support financing and investing activities in alternative eco-friendly technologies and ventures for reducing excessive natural resource utilization.

Purpose: This study investigates the impact of geopolitical risk (GPR) on foreign remittances (FRs) for the top remittance-receiving countries.Design/methodology/approach: The sample includes Mexico, France, Egypt, China, the Philippines, India, Vietnam, Ukraine, Germany and Belgium for the annual period of 1998–2022 using the nonlinear panel autoregressive distributed lag (ARDL) model to determine the asymmetry in the relationship.Findings: The results suggest that, in the short term, positive GPR shocks have a positive and significant impact on FRs received. On the other hand, the long-run results suggest that adverse GPR shocks negatively affect FRs received in the sampled countries. Additionally, the study confirms the asymmetric impact of GPR on top remittances received in countries.Research limitations/implications: The policymakers, migrants and recipients should consider the asymmetric nature of GPR while making decisions regarding policies and the transfer of remittances. This information can be used to create more effective policies for controlling and reducing the effects of GPR on overseas remittances, such as assisting migrant workers and developing methods to lessen the volatility of these flows.Originality/value: Acknowledging the potential fluctuations and uncertainties associated with GPR is crucial to make informed choices regarding remittance-related matters.

This study explores the association of novel COVID-19 with the dominant financial assets, global uncertainty, commodity prices, and stock markets of the top ten corona-affected countries. We employ a wavelet coherence technique to unearth this linkage using daily data of COVID-19 deaths and reported cases from 1 January 2020 until 26 February 2021. The study finds a weak coherence between COVID-19 and global uncertainty variables in the short and medium term, while a strong positive correlation has been witnessed in the long run. The COVID-19 cases impact the stock markets in the short and medium term, while no significant impact is reported in the long run. On the other hand, a substantial impact of the COVID-19 outbreak has also been found on the exchange rate. In addition, the real asset market, such as gold, remains more stable during the COVID-19 outbreak. Thus, the study recommends that investors and portfolio managers should add such assets to their investment options to safeguard the excessive risk and downside momentum of the equity market. The study also has implications for regulators who are concerned with the neutrality of the COVID-19 effect and market stability.

The objective is to check performance of microfinance loan in context of social performance and its various dimensions i.e health, education, clean water and women empowerment. Likewise study also test moderating effect of loan transparency and ownership structure between micro-finance loan and social performance. The survey-based approach was used with a sample size of 350. Data was collected through self-administered questionnaires from the client of a microfinance institution in a different region of Sindh. In response 273 completed questionnaires were received from respondent and response rate was 78%. Among those 273 questionnaires, 19 were unengaged responses so were considered unsuitable for analysis and reaming 254 questionnaire were used for data analysis. The Smart PLS Technique was used for data estimation in this study. Findings of the existing study portrays significant impact of microfinance loan on social performance as well as on its various dimensions i.e Health, Education, Clean Water and women empowerment. The moderating impact of transparency is positively significant in social performance, and the moderating impact of ownership structure in social performance is showing negative significant impact. The result of this study can lead to significant contributions and provide a better understanding and influence of transparency and ownership structure on the social performance of microfinance loans as well as dimensions of social performance. Financial sources of micro finance loan would be beneficial for poor people, micro enterprise and epically for empowerment of women in emerging economy. Micro finance institutions should control in interest rate and create an awareness regarding utilization of loan and timely repayment among their customers.