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on Microfinance |
| By: | Dokulilova, Lenka; Janda, Karel; Zetek, Pavel |
| Abstract: | The aim of this paper is to clarify the problems of microfinance and the sustainability of microfinance institutions (MFI) in financial crisis. We find, that MFIs are often considered as one of the most effective and flexible strategies in the fight against global poverty. Due to several often unsolvable problems obstructing easier and faster development of these institutions such as: ethnical problems, managerial resources, legal recourses, unfortunate recourses and other, the operations of MFIs are often not sufficiently efficient. The microfinance sector is in general known for its adaptability and quite healthy survival of past financial crises. However, current global financial crisis is testing the resilience of MFIs hardly. The MFIs are much more connected to international financial markets now that it was the case during previous crises. Therefore we expect that they will not survive the crisis without bearing some loses. But the expected losses are relatively smaller when compared to other financial institutions. |
| Keywords: | Financial crisis; Microfinance; Microcredit; MFIs |
| JEL: | G21 |
| Date: | 2009–10–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17696&r=mfd |
| By: | Hongbin Cai; Yuyu Chen; Hanming Fang; Li-An Zhou |
| Abstract: | We report results from a large randomized natural field experiment conducted in southwestern China in the context of insurance for sows. Our study sheds light on two important questions about microinsurance. First, how does access to formal insurance affect farmers' production decisions? Second, what explains the low takeup rate of formal insurance, despite substantial premium subsidy from the government? We find that providing access to formal insurance significantly increases farmers' tendency to raise sows. We argue that this finding also suggests that farmers are not previously insured efficiently through informal mechanisms. We also provide several pieces of evidence suggesting that trust, or lack thereof, for government-sponsored insurance products is a significant barrier for farmers' willingness to participate in the insurance program. |
| JEL: | C93 O12 O16 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15396&r=mfd |
| By: | Daniel Clarke; Sefan Dercon |
| Abstract: | This paper asks how insurance can be more effectively delivered to the poor, and what its role should be relative to other microfinance programmes, safety nets and informal insurance systems. We focus on the various interactions, including how insurance may crowd out credit and informal insurance, and implications for the design of insurance schemes. We argue that well-designed insurance schemes, building on existing informal systems, and focusing on catastrophic and serious covariate risks, could offer protection against risk and contribute to poverty reduction beyond the combined impact of microcredit programmes, safety nets and existing informal mutual support systems. |
| Keywords: | Risks, Microcredit, Microinsurance, Safety nets |
| JEL: | G21 G22 O16 O17 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:une:wpaper:81&r=mfd |