nep-mfd New Economics Papers
on Microfinance
Issue of 2013‒11‒16
six papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. Econometric Analysis of Profitability of Microfinance Institutions in Selected Asian Countries By Janda, Karel; Turbat, Batbayar
  2. Targeting Ultra-poor Households in Honduras and Peru By Dean Karlan; Bram Thuysbaert
  3. Special agricultural microfinance organizations - Macedonian Experience By Kovachev, Goran
  4. Microcrédit, pauvreté et autonomisation des femmes au Bénin By Dieudonné Bleossi Dahoun; Olivier Manlan; Cosme Vodonou; Saint-Martin Mongan; Damien Mededji; Janvier P. Alofa
  5. Learning to walk before you run : Financial Behavior and mobile banking in Madagascar By Venet, Baptiste; Arestoff, Florence
  6. Banking in Africa By Beck, Thorsten; Cull, Robert

  1. By: Janda, Karel; Turbat, Batbayar
    Abstract: This paper evaluates the effectiveness of some of the microfinance lending methodologies using the approach comparing these institutions among themselves in terms of how different lending methodologies influence their performance indicators. The results of this study with respect to different tested hypotheses are somewhat mixed but the general outcome is that rural lending and targeting women borrowers seem to have accomplished the goal whereas the effectiveness of group lending, in contrast to the initial expectation, was not confirmed.
    Keywords: microfinance, Asia, profitability
    JEL: G21 O16 P34
    Date: 2013–11–13
  2. By: Dean Karlan (Economic Growth Center, Yale University); Bram Thuysbaert (KU Leuven)
    Abstract: For policy purposes, it is important to understand the relative efficacy of various methods to target the poor. Recently, participatory methods have received particular attention. We examine the effectiveness of a hybrid two-step process that combines a participatory wealth ranking and a verification household survey, relative to two proxy means tests (the Progress out of Poverty Index and a housing index), in Honduras and Peru. The methods we examine perform similarly to one another by various metrics. They all target most accurately in the cases of the poorest and the wealthiest households but perform with mixed results among households in the middle of the distribution. Ultimately, given similar performance, the analysis suggests that costs should be the driving consideration in choosing across methods.
    Keywords: poverty targeting, participatory wealth rankings, proxy means tests
    JEL: C81 O12 O20
    Date: 2013–10
  3. By: Kovachev, Goran
    Abstract: In countries where agriculture has substantial role in generating domestic product, sustainable microfinance can seriously increase economic activities and hence rural development. It is well known that agriculture is perceived as specific and risky to be financed by banks. Therefore, creating a specific sustainable microfinance (sometimes state owned) institutions is key element in enhancing rural and agricultural activities. These organizations together with banks and other small-scale financial institutions operating in close collaboration with the Government have a significant role in accelerating economic welfare of farmers and rural poor. This study tends to emphasize the importance of creating special microfinance institutions targeted towards strategic economic sectors such agriculture, with a focus on Agricultural Credit Discount Fund - a separate unit within the Macedonian Bank for Development Promotion that administers a credit line created to support Macedonian agribusiness. The ACDF’s ‘modus operandi’ is a guideline to every similar potential organization, as it creates prerequisites for easier access to microloans and increased income to its beneficiaries. The outstanding portfolio performance, fulfillment of the objectives and good impact on stakeholders is strong confirmation to this claim.
    Keywords: sustainable microfinance; agriculture; high risk; economic welfare; rural development; special institutions; Agricultural Credit Discount Fund; microloans; agribusiness
    JEL: G2 H81 Q1
    Date: 2013–10–24
  4. By: Dieudonné Bleossi Dahoun; Olivier Manlan; Cosme Vodonou; Saint-Martin Mongan; Damien Mededji; Janvier P. Alofa
    Abstract: Cette étude apprécie l’impact du microcrédit sur l’autonomisation des femmes chefs de ménages au Bénin à partir de la méthode des groupes appariés, inspirée des travaux de Rosenbaum & Rubin [1983], Rubin [2006] et Abadie & Imbens [2006]. A cet effet et au regard des données disponibles (EMICoV 2010), quatre principales dimensions d’autonomisation ont été retenues, à savoir : (i) alphabétisme et niveau d’instruction, (ii) responsabilités sociales et conditions de vie, (iii) participation et droits politiques et (iv) participation et droits culturels. Les résultats obtenus suggèrent globalement un impact positif et significatif du microcrédit sur l’autonomisation des femmes au Bénin, en particulier les pauvres. Cet impact global est l’expression de l’effet significatif du microcrédit sur les dimensions « responsabilités sociales et condition des vie » et « participation et droits culturels » de l’autonomisation. Ainsi, en permettant aux femmes d’être économiquement actives, le microcrédit leur permet d’avoir des possibilités de s’informer et de constituer notamment des actifs physiques qui leur permet d’acquérir plus d’influence dans la communauté.
    Keywords: Revenu des Ménages - Autonomisation des femmes - Impact de la politique de Microcrédit - Pauvreté - Responsabilités sociales et conditions de vie - Méthode des groupes appariés
    JEL: C52 H32 D12
    Date: 2013
  5. By: Venet, Baptiste; Arestoff, Florence
    Abstract: In Madagascar, Orange introduced its mobile banking services in September 2010. Mobile-banking (m-banking) is a system that allows users to conduct a number of financial transactions through a mobile phone. The existing body of literature suggests that the use of m-banking services may have a positive impact on individual savings, affect money transfer behavior and/or encourage financial inclusion. In 2012, we conducted a survey of 598 randomly selected Orange clients in Antananarivo. We use the matching methodology to assess the impacts of m-banking on clients' financial behavior. The results show that the use of m-banking services increases the number of national remittances sent and received. It is in line with the conclusions of the existing literature devoted to M-Pesa in Kenya. Yet we find that using of m-banking services has no significant impact on the sums saved by users or the sums of remittances sent and received, which appears to contradict the users' perceptions. This result may, however, be explained by a learning-by-doing process: users need to first learn to trust the e-money system before making any significant changes to their financial behavior.
    Keywords: Banque mobile; Matching; Comportements financiers; Pays en développement; Mobile banking; Low Income countries; Financial behavior; Matching methodology;
    JEL: G2 G21 O16
    Date: 2013–09
  6. By: Beck, Thorsten; Cull, Robert
    Abstract: This paper takes stock of the current state of banking systems across Sub-Saharan Africa and discusses recent developments including innovations that might help Africa leapfrog more traditional banking models. Using an array of different data, the paper documents that African banking systems are shallow but stable. African banks are well capitalized and over-liquid, but lend less to the private sector than banks in non-African developing countries. African enterprises and households are less likely to use financial services than their peers in other developing countries. The paper also describes a number of financial innovations across the continent that can help overcome different barriers to financial inclusion and have helped to expand the bankable and the banked population.
    Keywords: Access to Finance,Banks&Banking Reform,Debt Markets,Emerging Markets,Bankruptcy and Resolution of Financial Distress
    Date: 2013–10–01

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