Establishment of gross loan portfolio risk-return questionnaire: reliability and validity structure
Keywords:
financial inclusion, gross loan portfolio risk-return questionnaire, microfinance institutions, portfolio management, risk managementAbstract
Microfinance institutions (MFIs) play a pivotal role in fostering financial inclusion and combating poverty in the Philippines. However, assessing the risk-return profile of these MFIs is challenging due to the lack of tailored assessment tools. This study introduces the Gross Loan Portfolio Risk-Return Questionnaire (GLP-RRQ), customized for MFIs in Occidental Mindoro, Philippines. Employing a cross-sectional approach, the study involved five active MFIs. The questionnaire exhibited excellent internal consistency (94.8%) and validity. Results revealed robust associations between various risk and return factors. For instance, credit quality demonstrated strong correlations with specific questionnaire items (Factor 1: Credit Quality, GLP-RRQ item 2, loading = .860). Similarly, sustainability showed significant associations (Factor 3: Sustainability, GLP-RRQ item 6, loading = .880). These findings underscore the reliability and applicability of the GLP-RRQ in evaluating MFI loan portfolios. By utilizing this tool, stakeholders can make informed decisions to manage risks effectively and enhance financial performance, thereby advancing financial inclusion efforts and poverty alleviation initiatives in the Philippines.
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The research data supporting this study are available upon request from the corresponding author, in compliance with institutional policies and ethical considerations.
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Copyright (c) 2025 Jason Ramirez (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
