nep-mfd New Economics Papers
on Microfinance
Issue of 2011‒07‒21
three papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. A credit score system for socially responsible lending By Begoña Gutiérrez-Nieto; Carlos Serrano-Cinca; Juan Camón-Cala
  2. Use of Banking Services in Emerging Markets--Household-Level Evidence By Beck, Thorsten; Brown, Martin
  3. IMPLEMENTING HEALTH INSURANCE FOR THE POOR: THE ROLLOUT OF RSBY IN KARNATAKA By Erlend Berg; Maitreesh Ghatak; R Manjula; D Rajasekhar; Sanchari Roy

  1. By: Begoña Gutiérrez-Nieto; Carlos Serrano-Cinca; Juan Camón-Cala
    Abstract: Ethical banking, microfinance institutions or certain credit cooperatives, among others, grant socially responsible loans. This paper presents a credit score system for them. The model evaluates both social and financial aspects of the borrower. The financial aspects are evaluated under the conventional banking framework, by analysing accounting statements and financial projections. The social aspects try to quantify the loan impact on the achievement of Millennium Development Goals such as employment, education, environment, health or community impact. The social credit score model should incorporate the lender’s know-how and should also be coherent with its mission. This is done by using the Analytic Hierarchy Process (AHP) technique. The paper illustrates a real case: a loan application by a social enterprise presented to a socially responsible lender. The decision support system not only produces a score, but also reveals strengths and weaknesses of the application.
    Keywords: OR in banking; Credit scoring; AHP; social banking; social impact assessment; financial ratios
    Date: 2011–07
    URL: http://d.repec.org/n?u=RePEc:sol:wpaper:2013/92109&r=mfd
  2. By: Beck, Thorsten; Brown, Martin
    Abstract: This paper uses survey data for 60,000 households from 29 transition economies in 2006 and 2010 to explore how the use of banking services is related to household characteristics, as well as to bank ownership, deposit insurance and creditor protection. At the household level we find that the holding of a bank account, a bank card, or a mortgage increases with income and education in most countries and find evidence for an urban-rural gap. The use of banking services is also related to the religion and social integration of a household as well as the gender of the household head. Using the within-country variation between 2006 and 2010, we find that the privatization of state-owned banks and an increase in market share of foreign banks are associated with a stronger use of banking services. Foreign bank ownership is also associated with a higher use of bank services among highincome households and households with formal employment. State ownership, by contrast is hardly associated with more outreach to poorer households. More generous deposit insurance and stronger creditor rights also foster the use of banking services among the urban, rich, better educated and formally employed.
    Keywords: access to finance; bank ownership; creditor protection; deposit insurance; household finance
    JEL: G18 G2 O16 P34
    Date: 2011–07
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:8475&r=mfd
  3. By: Erlend Berg; Maitreesh Ghatak; R Manjula; D Rajasekhar; Sanchari Roy
    Abstract: The National Health Insurance Scheme (Rashtriya Swasthya Bima Yojana, RSBY) aims to improve poor people's access to quality health care in India. This paper looks at the implementation of the scheme in Karnataka, drawing on a large survey of eligible households and interviews with empanelled hospitals in the state. Six months after initiation, an impressive 85% of eligible households in the sample were aware of the scheme, and 68% had been enrolled. However, the scheme was hardly operational and utilisation was virtually zero. A large proportion of beneficiaries were yet to receive their cards, and many did not know how and where to obtain treatment under the scheme. Moreover, hospitals were not ready to treat RSBY patients. Surveyed hospitals complained of a lack of training and delays in the reimbursement of their expenses. Many were refusing to treat patients under the scheme until the issues were resolved, and others were asking cardholders to pay cash. As is typical for the implementation of a government scheme, many of the problems discussed can be related to a misalignment of incentives.
    Date: 2011–03
    URL: http://d.repec.org/n?u=RePEc:cep:stieop:025&r=mfd

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