Focus on women in microfinance institutions

We provide empirical evidence on focusing on women in microfinance and its consequences for
microfinance institutions (MFIs). Based on a global dataset, the results indicate that a focus on women is
associated with group-lending methods, international orientation, smaller loans, and non-commercial legal
status. We find that a focus on women significantly improves repayment but does not enhance overall financial
performance because of higher relative costs. Moreover, the higher relative costs do not stem from servicing
women per se but from the smaller loans offered to women and the group-lending methodology practised by
MFIs focusing on women.