Abstract

We investigate if the CEO’s gender plays a role in microfinance institutions (MFIs) inclusion of poor families into a formal financial relation. Financial inclusion comprises inclusion of the poorest segments of borrowers (the intensive margin), and the number of borrowers (the extensive margin). The data set is a unique global panel of MFIs collected from MFI raters’ reports where about 25% of all MFIs have a female CEO. Using instrumental variables regressions, we find evidence the female CEOs have an impact upon the intensive margin (smaller average loans, more gender bias), but no evidence of greater inclusion on the extensive margin (credit client growth). The results fit theories of women being more benevolent and universalistic than men. We~run robustness tests of our financial inclusion variables and other leadership categories.