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...

This paper studies the relation between board size and composition and cost savings (scope economies) from combining savings mobilization and lending by Microfinance Institutions. The findings support the hypothesis that employee representation on the board is associated with positive scope...