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on Microfinance |
| By: | Gharad T. Bryan; Dean Karlan; Jonathan Zinman |
| Abstract: | We examine a randomized trial that allows separate identification of peer screening and enforcement of credit contracts. A South African microlender offered half its clients a bonus for referring a friend who repaid a loan. For the remaining clients, the bonus was conditional on loan approval. After approval, the repayment incentive was removed from half the referrers in the first group and added for half those in the second. We find large enforcement effects, a $12 (100 Rand) incentive reduced default by 10 percentage points from a base of 20%. In contrast, we find no evidence of screening. |
| JEL: | C93 D12 D14 D82 O12 O16 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17883&r=mfd |
| By: | Sk. Mahmudul Alam, Mahmud |
| Abstract: | Remittance is called the life blood of Bangladesh economy. In Bangladesh it contributes much in reducing poverty. In a study of Institute of Microfinance led by Professor S.R. Osmani, we have seen that 4 % poverty of Bangladesh solely reduced by foreign remittance. Microcredit is another important tool in reducing poverty. In the same study, we have seen that microcredit solely reduced 4% poverty in Bangladesh. In Bangladesh microcredit will be an important tool in earning remittance. Microfinance Institutions in Bangladesh can play its role in two stages – a) pre-stage and b) post stage. In pre stage MFIs can work as an important source of money for migration and MFIs can also trained migrant worker according to their importers’ demand which helps workers to improve their efficiency. This helps Bangladesh to earn more remittance which helps in reducing poverty. In post stages MFIs can help migrant worker to send money and also work for proper utilization of this remitted money. This helps to create entrepreneurs which help to create employment, which help to reduce poverty in Bangladesh. This whole process is discussed in this paper elaborately. |
| Keywords: | Bangladesh; Microfinance Institutions; Microcredit; International Migration; Migrant Workers; Remittances; Development |
| JEL: | F22 F24 |
| Date: | 2012–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:36459&r=mfd |
| By: | Baele, L.; Farooq, M.; Ongena, S. (Tilburg University, Center for Economic Research) |
| Abstract: | Abstract: We compare default rates on conventional and Islamic loans using a comprehensive monthly dataset from Pakistan that follows more than 150,000 loans over the period 2006:04 to 2008:12. We find robust evidence that the default rate on Islamic loans is less than half the default rate on conventional loans. Islamic loans are less likely to default during Ramadan and in big cities if the share of votes to religious-political parties increases, suggesting that religion – either through individual piousness or network effects – may play a role in determining loan default. |
| Keywords: | Loan Default;Islamic Loans;Religion;Duration Analysis. |
| JEL: | A13 G21 G32 G33 Z12 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:2012014&r=mfd |
| By: | Chong, T.T.L.; Lu, L.; Ongena, S. (Tilburg University, Center for Economic Research) |
| Abstract: | Abstract: Banking competition may enhance or hinder the financing of small and medium enterprises. Using a survey on the financing of such enterprises in China, combined with detailed bank branch information, we investigate how concentration in local banking market affects the availability of credit. We find that lower market concentration alleviates financing constraints. The widespread presence of joint-stock banks has a larger effect on alleviating these constraints, than the presence of city commercial banks, while the presence of state-owned banks has a smaller effect. (83 words) |
| Keywords: | Banking Competition;SMEs Financing;Credit Constraints. |
| JEL: | D41 D43 G21 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:2012013&r=mfd |