At present, many microfinance institutions (MFIs) not only lend but also collect savings to serve better the needs of the poor. Little is known, however, if MFIs' overall costs decrease or increase as a consequence, nor it is clear which MFIs may benefit the most from expansion into savings...

Is the microfinance institution (MFI) able to charge unduly high lending rates and obtain a profitability incompatible with perfect competition? We use a global panel data set of MFIs. The Panzar and Rosse revenue test in static and dynamic versions is employed, together with analyses of price...