nep-mfd New Economics Papers
on Microfinance
Issue of 2016‒03‒29
two papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Financial Soundness Indicators for Financial Sector Stability in Bangladesh By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  2. Determinants of Borrowing and Households’ Risk of Credit in Rural Area in Niger By Ahamadou MAICHANOU

  1. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB)
    Abstract: Financial soundness indicators (FSIs) are compiled to monitor the health and soundness of financial institutionsand markets, and of their corporate and household counterparts. With support from the Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Facility, this report describes the development of FSIs for Bangladesh and analyzes FSIs to identify key challenges to financial sector stability in the country. A large number of FSIs are not yet available for Bangladesh, notably outside the formal banking sector including nonbank financial institutions, insurance companies, and microfinance institutions. Another key challenge for Bangladesh is the improvement of coverage, frequency, timeliness, and quality of FSIs and to make them more available to a wider audience.
    Keywords: Financial Sector, Financial Soundness Indicators, Asia and the Pacific, Asian Development Bank, Investment climate, Core indicators, Encouraged indicators, deposit takers, financial corporations, nonfinancial sectors
    Date: 2015–09
  2. By: Ahamadou MAICHANOU
    Abstract: This article focuses on borrowers default in rural credit in Niger, according to their food needs situation. Given that economic agents are likely to adopt opportunistic behavior rather than mutually beneficial relations when facing natural hazards, this analysis is taken from the perspective of contract theory with asymmetric information. In the case of rural Niger, it empirically addresses the determinants of involuntary default, voluntary default and repayment effort, while managing the difficulties of applying the concepts of information economy and uncertainty to the complexity of rural area credit in a developing country. Results show more involuntary default than voluntary one and a real willing to repay. These results make us to provide support for households with effort repayment willing and establish an incentives structure for all kind of borrowers.
    Keywords: Contract, credit, risk of default, asymmetry of information, rural, Niger
    JEL: D13 D86
    Date: 2016

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