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on Microfinance |
| By: | Badruddoza, S. |
| Abstract: | This note critically discusses the possible endogenous problems that microfinance sector in Bangladesh should seriously take into account. It also draws possible explanations and/or consequences of these factors. The broad understanding is that the sector should emphasize credit plus programs, skill development of borrowers, strong monitoring, product diversification, microenterprise for graduated members and micro-insurance to withstand shocks. For extreme poor, safety-net programs are better option than microfinance. |
| Keywords: | microfinance; bangladesh; microcredit; non-government organization; microfinance institution; problems |
| JEL: | O16 R51 D14 |
| Date: | 2012–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:37944&r=mfd |
| By: | Marion Allet |
| Abstract: | In recent years, in addition to financial and social objectives, the microfinance industry has started to look at its environmental bottom line. The objective of this paper is to identify why microfinance institutions (MFIs) decide to go green. Data was collected through a quantitative survey of 160 MFIs and qualitative semi-structured interviews of 23 MFIs’ top managers. Basing our analysis on the model of ecological responsiveness developed by Bansal & Roth (2000), we discover that MFIs that are the most proactive in environmental management are primarily motivated by social responsibility, additionally by competitiveness, and to a lesser extent by legitimation (stakeholder pressure). MFIs for which legitimation is the dominant driver tend to adopt a defensive approach and set up more superficial negative strategies to appear green. In contrast, MFIs for which social responsibility is the dominant driver tend to be more proactive and innovative and develop adapted financial and non-financial services to promote environmentally-friendly practices. |
| Keywords: | Microfinance; Ecological responsiveness; Environmental motivation; Organizational decision making; Corporate Social Responsibility |
| JEL: | G21 Q01 Q56 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/115102&r=mfd |
| By: | Berg, Gunhild; Kirschenmann, Karolin |
| Abstract: | This paper analyzes the impact of two distinct shocks stemming from the cross-border transmission of the 2007-2009 crisis on credit availability for small firms. The paper uses data from AccessBank Azerbaijan which was affected in its liquidity position during the second and third quarters of 2008 by delays in its refinancing. The Azeri real economy was hit by the global crisis from the fourth quarter of 2008 onwards with a combined decline in oil prices, exports, remittances, and domestic demand. Therefore, a pure supply side shock con be contrasted with a real economy shock that hit exactly when the bank's funding position strengthened again. The paper finds that during the funding shock (potential) borrowers are discouraged from applying for loans. However, for those applications made, the likelihood of loan approval is not affected. The real economy shock, in contrast, reduces the approval likelihood for SME loans in particular, while agro and micro loans are considerably less affected. Finally, bank relationships increase credit availability in good as well as in bad times. |
| Keywords: | Access to Finance,Debt Markets,Microfinance,Bankruptcy and Resolution of Financial Distress,Banks&Banking Reform |
| Date: | 2012–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6030&r=mfd |
| By: | Laurent Weill (LaRGE Research Center, Université de Strasbourg); Christophe Godlewski (LaRGE Research Center, Université de Strasbourg) |
| Abstract: | This paper examines the motivations for large firms to choose an Islamic loan over a conventional loan and the recent expansion of Islamic finance activities. We employ a dataset of Islamic and conventional syndicated loans from countries in the Middle East and Southeast Asia for the period 2001-2009, testing determinants for the choice of an Islamic loan at the facility, firm, and country level. From the lenders standpoint, loan characteristics apparently do not influence the decision to offer Islamic loans, nor are they rationed to borrowers in terms of maturity or amount. Moreover, firms taking Islamic loans do not appear to differ in terms of default risk from firms taking conventional loans. We identify three country-level determinants as potential driving forces expanding the preference for Islamic loans. The strongest determinant is religiosity, i.e. the share of Muslim population in a country, but the quality of institutions and level of financial development also play substantial roles. |
| Keywords: | Islamic banks, loans. |
| JEL: | G21 G32 O16 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2012-05&r=mfd |