Measuring performance of social and non-profit Microfinance Institutions (MFIs): An application of multicriterion methodology

Microfinance Institutions (MFIs) are special financial institutions of both social and non-profit nature whose performance has been traditionally measured by means of financial ratios. However, performance rankings are usually based on a single criterion, so the performance measure varies according to the criterion used. This paper proposes a multicriterion methodology based on goal programming that simultaneously considers different categories involved in the performance of Microfinance Institutions. The paper is illustrated by a sample of Latin American MFIs.