Includes CD

ABSTRACT The study sampled 11 microfinance institutions have adequate indicator report in the MIX market database from 2000- 2018 and data analyzed with multivariate mechanism. The research was geared towards providing acumen into factors of financial sustainability of microfinance institutions and its impact on financial deepening and poverty reduction. The results from the study indicated that depth of outreach, operating expenses and loan size standing of microfinance institutions in Ghana are key factors that encourage financial sustainability. Growing financial system is capable of improving the finances of microfinance institutions as revealed by the study. However, despite microfinance institutions preconditioned to reduce vulnerability, it was evident that financial sustainability of microfinance institutions does not contribute to poverty reduction in the case of Ghana. Based on the results, it is conclusion that although depth and breadth of outreach, dependency ratio and cost per borrower are important variables in determining financial sustainability of microfinance institutions in Ghana, however, no significant association was found between capital structure and financial sustainability of microfinance institutions. Therefore, the study suggest that microfinance institutions in Ghana should first minimize their dependency on donated capital to be operationally competent in the market ensuing financially sustainability. Further study may consider MFIs' geographically to determine the relationships between the reported variables. KEYWORDS: Microfinance institutions, Financial sustainability, Financial deepening, Poverty reduction, Breath of outreach, Depth of outreach, Dependency ratio, Cost per borrower.

Includes references (66-76 p.)