Variables | Description | Expected sign |
Capital Adequacy Ratio (CAR) | Capital/total Assets | Positive |
Risk Coverage Ratio (RISK) | Capital/total risk incurred | Positive |
Liquidity Ratio (LIQUIDITY) | Current financial assets/current liabilities | Negative |
External Funding Coefficient (EFC) | Equity/Debts | Positive |
Fixed Assets Coverage Ratio (FACR) | Permanent resources/total fixed assets | Positive |
Size of the MFI (SIZE) | Natural logarithm of total assets | Ambiguous |
Subvention (SUB) | Quantitative variable | Ambiguous |