nep-mfd New Economics Papers
on Microfinance
Issue of 2013‒10‒25
three papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. Aspects of microfinance system of Grameen Bank of Bangladesh By Islam, Jamal; Mohajan, Haradhan; Datta, Rajib
  2. Female Access to Credit in France: How Microfinance Institutions Import Disparate Treatment from Banks By Anastasia Cozarenco; Ariane Szafarz
  3. Islamic finance and financial inclusion: measuring use of and demand for formal financial services among Muslim adults By Demirguc-Kunt, Asli; Klapper, Leora; Randall, Douglas

  1. By: Islam, Jamal; Mohajan, Haradhan; Datta, Rajib
    Abstract: The microfinance system of Grameen Bank is a revolutionary tool to eradicate poverty of the rural people especially the women of Bangladesh. At present GB is the largest microfinance bank in Bangladesh and probably the biggest microcredit organization in the world. It provides loans to assetless and landless poor people whom no commercial bank give loan. Microcredit is the most useful and popular financial system in the world to face financial crisis of the poor people. Grameen Bank loan distribution has risk of default and sometimes the loans are used even dowry which is crime against women right. The rate of interest in Grameen Bank is very high and due to high interest rate the poor women can not use the loan in a high profitable business to bear this burden, so some of the borrowers lose lands and assets to pay the loan. The paper discusses both advantages and drawbacks of Grameen Bank with mathematical calculations in some details.
    Keywords: Grameen Bank, Microfinance, Joint liability, Loan, Risk of default.
    JEL: G21
    Date: 2012–02–16
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:50691&r=mfd
  2. By: Anastasia Cozarenco (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS); Ariane Szafarz (Université Libre de Bruxelles (ULB), SBS-EM, Centre Emile Bernheim, and Centre for European Research in Microfinance (CERMi))
    Abstract: This paper compares the loans granted to male and female entrepreneurs by a French microfinance institution (MFI). The sample period is split in two: before and after the MFI implemented the French EUR 10,000 regulatory loan-size ceiling. In the first period, the MFI does not co-finance projects with mainstream banks and loan size is gender-insensitive. In the second period, the MFI does co-finance above-ceiling projects with mainstream banks, and we observe a gender gap in loan size. The results suggest that co-financing leads the originally gender-neutral MFI to import disparate treatment from mainstream banks.
    Keywords: microcredit, loan-size ceiling regulation, commercial bank loan, gender discrimination, glass ceiling, France
    JEL: G21 J16 M13 L51 G28 O52 I38
    Date: 2013–10
    URL: http://d.repec.org/n?u=RePEc:aim:wpaimx:1350&r=mfd
  3. By: Demirguc-Kunt, Asli; Klapper, Leora; Randall, Douglas
    Abstract: In recent years, the Islamic finance industry has attracted the attention of policy makers and international donors as a possible channel through which to expand financial inclusion, particularly among Muslim adults. Yet cross-country, demand-side data on actual usage and preference gaps in financial services between Muslims and non-Muslims have been scarce. This paper uses novel data to explore the use of and demand for formal financial services among self-identified Muslim adults. In a sample of more than 65,000 adults from 64 economies (excluding countries where less than 1 percent or more than 99 percent of the sample self-identified as Muslim), the analysis finds that Muslims are significantly less likely than non-Muslims to own a formal account or save at a formal financial institution after controlling for other individual- and country-level characteristics. But the analysis finds no evidence that Muslims are less likely than non-Muslims to report formal or informal borrowing. Finally, in an extended survey of adults in five North African and Middle Eastern countries with relatively nascent Islamic finance industries, the study finds little use of Sharia-compliant banking products, although it does find evidence of a hypothetical preference for Sharia-compliant products among a plurality of respondents despite higher costs.
    Keywords: Access to Finance,Banks&Banking Reform,Islamic Finance,Debt Markets,Emerging Markets
    Date: 2013–10–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6642&r=mfd

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