nep-mfd New Economics Papers
on Microfinance
Issue of 2012‒01‒18
four papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. The Andhra Pradesh microfinance crisis in India: manifestation, causal analysis, and regulatory response By Anurag Priyadarshee; Asad K. Ghalib
  2. The Road to Financial Sustainability. Comparative Analysis of Russia and the Caucasus Region By Sheremenko, Ganna; Escalante, Cesar; Florkowski, Wojciech
  3. The Impact of the Seed Capital Program of SERCOTEC in Chile By Claudio A. Bonilla; Christian A. Cancino
  4. Cambio climático en América Latina y el Caribe: Riesgos para el sector de las microfinanzas y oportunidades para la adaptación: 2011 By María Elena Gutierrez; Xavier Mommens

  1. By: Anurag Priyadarshee; Asad K. Ghalib
    Abstract: The microfinance sector in India’s state of Andhra Pradesh was recently marred by a series of mishaps that occurred due to extensive lending, which resulted in over-indebtedness and ultimately, defaults. Lending institutions resorted to coercive measures for loan recovery that led to suicides amongst borrowers. In this paper, we explore the reasons that led to such circumstances. We will consider how the widespread operations and omnipresent Self-Help Groups, together with their linkages with banks, attracted private microfinance providers. This, coupled with the absence of adequate regulatory mechanisms, resulted in over-lending to the poor. The paper discusses policy implications of the various regulatory measures that the Government subsequently took to harness and regulate micro-lending practices in the state. It is argued that the regulatory measures initiated to address the issue do not focus on the social structures, i.e., the unequal distribution of the community institutional infrastructure base for delivery of microfinance among different states, and the singular focus of privatesector MFIs on maximizing profits in an inefficiently regulated environment, that gave rise to the current circumstances.
    Date: 2011
  2. By: Sheremenko, Ganna; Escalante, Cesar; Florkowski, Wojciech
    Abstract: This paper examines delinquency, profitability, and outreach determinants of microfinance institutionsâ (MFIs) performance in Russia and the Caucasus. The estimation is done using the Seemingly Unrelated Regression (SUR) technique. The estimation results suggest that Russian and Caucasian MFIs are profit-driven but are expected to improve outreach in the long-run.
    Keywords: Microfinance institution, SUR, Financial sustainability, Delinquency, Profitability, Social outreach, Agricultural Finance, Financial Economics, G20, G21,
    Date: 2012
  3. By: Claudio A. Bonilla; Christian A. Cancino
    Abstract: This paper seeks to measure the impact on small businesses in Chile of the Seed Capital Program implemented by Chile's Technical Cooperation Services (Servicio de Cooperación Técnica SERCOTEC). The results are mixed. On the one hand, the impact of sales is positive but its statistical significance depends on the model used. With regard to the number of employees, however, the results are positive and statistically significant regardless of the model used. The results also show that participating in the program has no incidence on the probability of later obtaining financing. This study highlights the importance of differentiating between productive development programs and social programs. It also suggests improvements in public policy to develop entrepreneurship in small businesses in Chile. These suggestions may also be interesting for other countries in the region facing similar challenges in terms of developing private entrepreneurship as a vehicle to generate economic development.
    Keywords: Financial Sector :: Financial Services, Private Sector :: SME, Private Sector :: Microbusinesses & Microfinance, Small and medium enterprise, entrepreneurship, productive development, SMEs
    JEL: O20 O25 O22
    Date: 2011–12
  4. By: María Elena Gutierrez; Xavier Mommens
    Abstract: Este estudio tiene como finalidad mostrar cómo los servicios de las microfinanzas pueden sufrir los impactos del cambio climático, analizar las oportunidades que se presentan para las instituciones microfinancieras y proponer acciones concretas. El presente trabajo se desarrolló por encargo del Banco Interamericano de Desarrollo (BID) en coordinación con la Unidad de Energía Sostenible y Cambio Climático (ECC) y el Fondo Multilateral de Inversiones (FOMIN), y se realizó a partir de revisiones bibliográficas, de la experiencia en la región latinoamericana y de entrevistas que se llevaron a cabo durante misiones en Perú y Guatemala.
    Keywords: Energía y minería :: Energía renovable, Medio ambiente y recursos naturales :: Cambio climático, Sector privado :: Microempresas y microfinanciamiento, Desarrollo social :: Pobreza, Sector financiero :: Servicios financieros, IMF, sector de las microfinanzas, CC, instituciones microfinancieras, microcréditos
    Date: 2011–10

This nep-mfd issue is ©2012 by Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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