Determinants of arbitrage between a Bank and MFI

case of the city of Bukavu

The objective of this work is to highlight the elements that determine the choice of holding an account in a microfinance institution rather than in a bank and vice versa.

Therefore, it consists first of all of a verification of the theory according to which those excluded from the banking sector would be preferred clients for Microfinance Institutions (MFIs) and then of a determination of the variables explaining the choice between the two types of institutions.

To achieve these objectives, this work is structured in three chapters, excluding the introduction and conclusion.

The methodology proposed the approach chosen to pave the way for the presentation, analysis, interpretation and implications of the results in the last chapter.

The model was applied to data from a survey, with a sample of 204 individuals, which took place over a period of one month, i.e., from November 20 to December 20, 2014, in the financial institutions of Bukavu.

The target population consisted of individuals holding accounts in these institutions at the time of the surveys.